How are you finding quality agents and Wholesalers?

Question

Any expirienced flippers willing to give some insight? Im in a stage where im putting work in but just not sure if what im doing is the most productive. Results arent concrete. As you may remember, this stage sucks and if you have the time I would appreciate it.What were some actionable steps you took you took to build/find agent connections that opened up good deals? What agents did you target, where would you find them, how did you approach them?

Current steps im taking:

-Ive currently called agents who are listing houses with "fixer upper" or something similar and pitch that i can buy deals from them that need to be fixed up. Hard to imagine theyll remember me just from a phone call so i plan on following routinely. Is this a productive method and anything to add?

-advertising to wholesalers on investor facebook groups to send me deals. Only deals ive seen priced decently are done so to get them bidded up to a number so high i cant even wrap my head around sometimes.

-attended a few meet ups. Didn't find too many resources but this could just be me needing to improve my networking skills. Any meet ups that you really liked?

Im analyzing deals sent to me everyday. Have bought 3 and looking to grab a lot more this year. Not one has sent a deal that pencils out perfectly where i know for certain ill profit. I understand newer investors have to take the slimmer deals but it seems like wholesalers list their stuff to attract somebody desperate enough to get themself in a high risk deal that could easily go wrong. And then that investor wont be buying again so i dont get the logic behind it but maybe theres a neverending supply of desperate buyers.

Drew Sygit · Answer

Sigh,  Why does everyone want to chase strangers – and ignore their own personal network?

Which do you think will be more competitive, buying from wholesalers or your own referrals?

Per this NY Times article, the average American knows around 600 people.
https://www.nytimes.com/2013/02/19/science/the-average-american-knows-how-many-people.html#:~:text=The%20average%20American%20knows%20about,do%20you%20know%20named%20Kevin%3F

Per the US Census Bureau, the average American moves 11.7 time in their life, which based upon an approximate lifespan of 84 years, works out to be about every 7 years.
https://www.census.gov/topics/population/migration/guidance/calculating-migration-expectancy.html#:~:text=Using%202007%20ACS%20data%2C%20it,one%20move%20per%20single%20year

So, if the average American knows 600 people and they each move about every 7 years, that means that the average American knows around 85 people that move in any given year.

How many of those moves do you want to be involved in?

To maximize the number of transactions you’re involved in you will need to:

• Be Top of Mind when they think about moving - which requires consistent reminders.
• Be seen as an Expert – which requires a consistent message and Evidence of Success stories
• Gain their Trust – which requires communicating with integrity

So, start out by CONSISTENTLY posting what you are doing on whatever social media channels you currently use. Not on any? You better fix that! You may also want to figure out which channels your family & friends use the most and get on those if you’re not on them currently.

What should you post?

How excited you are about what you’re doing in real estate investing! Share stories about your successes AND challenges. Then, ask them for their help!

IMPORTANT: do NOT ask people for THEIR business, ask for referrals! Why? Because they will get defensive if they feel you are pressuring them. Remember, they can always refer themselves😊

Use one of the ideas below to trigger who they know that they could connect you with:

• Just inherited a home
• Had a loved one pass away
• Is behind on their mortgage or tax payments
• Has a relative that can’t take care of their house anymore
• Has a house they’re having trouble selling
• Is facing bankruptcy
• Knows a probate attorney
• Knows a bankruptcy attorney
• etc

Putting this in OVERDRIVE

Create a spreadsheet (Excel or Google Sheet) listing everyone you can think of that would recognize your name or face.

Why a spreadsheet?  Because later, you can easily upload to a CRM like Constant Contact to create an email list!

Create columns for Name, email, cell and even Street Address, City, State, Zip and then contact info: Last Contact, Relationship, Status.

Then start calling these people. Divide the number of people on your list by 20 - and that’s how many you want to try to target daily.

Whether you get ahold of them or leave a vm, use 1-3 of the above triggers for referrals.

Why only 1-3 off the list per contact? Because on average, we can only remember three things at a time. If you try to go over the whole list, you’ll lose the attention of the average person and they won’t remember anything!

It should only take you about a month or two to contact everyone on your list and then the tough part – you start all over again.

Be sure to also ask what social media channels they are on and connect with them there.

Why the repetition? Because it takes repetition for people to remember things and you have to be top-of-mind when they encounter a potential client for you!

Have you ever been to McDonalds? Of course you have! So, why is McDonalds still spending billions on advertising?

One more tip – people remember stories that trigger their emotions. So, tell a story of how you (or a fellow wholesaler) helped a seller out with their challenge(s). Change your story each month as different stories will resonate with different people AND use each story to emphasize one of your “who do you know…” questions.

One last thing – we recommended you create a Status column on your spreadsheet, now we’ll explain why. If you find someone that seems to know a lot of people needing your services, wouldn’t it make sense to focus more resources on them? Conversely, you will run into people on your list that just seem to be a waste of time, so you’ll want to avoid them. So, create status codes for both of these and a few in-between codes to help you work smarter, not harder.

@Bo Smith what do you think?

Peter Mckernan · Answer

This stage still happens to me at times, properties get bid up, there are no agents willing to talk to you since they either do not have deals, or the deals they do have aren't really deals. The wholesalers you are probably in contact with are either big, or have enough of a buyers list that they can bid up properties. I get about 2-5 text a day from people that have tapped into realtor lists and send out blast text about getting a deal of realtors.

Couple things to think about:

1. Think about doing your own marketing, example, calling, door knocking, etc.

2. If you have some money, then you can add in your mix of networking, PPC, PPL, mailers and more.

3. Network with some probate attorney's that can you get into the mix on a property that has the connection with the owner, estate, or trust.

4. The grind is real, that is why normal real estate agents have a failure rate of 87% by year 5. This business is not for the people looking to get rich fast, you need to build your reputation, and as Warren Buffet says, "takes a life time to build a reputation and seconds to lose it." Or something like that.

Here is something that I would really suggest, bring an agent that gets a lot of off market, fixer deals a true listing or deal to rep you on buying. Most people that call me, text me, or email me say all the same things! "Hey, I'll allow you to list the deal on the backend if you find me a deal." "Hey, you know I really would love for you to get me a deal and I can for sure close quickly and got a ton of capital." "Hey, you got any deals, I can close and close in 15 days no repairs or anything." Then, I never hear from them again, they are just asking something from me and I have never even met them, or ever end up talking to them again. They are just calling me out of the blue and trying to get me to give them this huge deal, and trust they can do all the right things without doing any upfront relationship building (oh and you better beat I'll be listing the property on the backend either way :-)). But these people never even call back, say hey let's get coffee, or hey, can you rep me on this deal now and then we can grow this relationship? Nope, but the guy that I call every single time I have a deal, no one else unless he cannot do the deal cause he has too many, the guy that allows me to list his properties even if he gets them from someone else (relationship building). He knows I will call him, do whatever I can to get him a deal, and I have gotten him some great deals (some not so great lol), but I call him no one else. Be that guy to one of two people and you'll have solid deal flow! That guy throws me listings without even finding him that deal is the guy I will always go to every time, and that is a person or people you need to do things like that for to always have some deal flow for years to come.

Bo Smith · Answer

You're right about the frustration -- that stage does suck. The real issue is you're fishing in the same pond as every other new investor. Most wholesalers' buyer lists are full of people who'll just eat deals for the sake of getting one. They're not after quality deals, they're after any deal.

Here's what worked for me: I stopped chasing wholesaler lists and started building relationships with specific agents who close a lot of REO and off-market deals. The approach you mentioned -- calling agents listing fixer-uppers -- is solid, but it requires consistency and follow-up. Most agents get one call and write you off. What I did was call, introduce myself as a buyer, ask what their typical rehab budget looks like for their market, then sent a simple follow-up email every two weeks saying I was still active. It took about 3 months of that rhythm before one agent started sending deals my way. Then another did. Now I have about 5 or 6 agents I work with regularly.

On wholesalers: the good ones have a smaller list because they don't need to blast 500 people. If you're seeing deals get bid up instantly, you're in the wrong group. The right groups are either local (real REIA meetings, not Facebook groups), or they're wholesalers who've built reputation in a specific market.

Are you in a strong flip market right now, and have you tried building a profile with a couple of local agents instead of casting such a wide net with wholesalers?

Bo Smith · Answer

The phone call method is the right move, but follow-up is everything. One call won't cut it. You need a system where you're staying top of mind without being annoying. I call agents who specialize in fixer deals (look for their "distressed" or "as-is" listings), pitch them once, then touch base monthly. Some will respond, most won't. The ones who do are the ones building relationships.

On the wholesaler front, yeah the deals are getting bid up because there's a ton of capital chasing inventory right now. You're competing against people with deep pockets and lower return thresholds. The deals that "pencil out perfectly" are rare -- and if they seem too good, dig harder because there's usually something wrong. Wholesalers aren't philanthropists. If it looks great, ask yourself what you're missing.

Your meetup and Facebook group approach is solid, but you've got to walk in with actual deal flow to offer back. Bring closed deals to the conversation, not just capital. That's what separates the real operators from the tire-kickers. Agents and wholesalers remember the person who actually bought and finished a deal, not the person who called with interest.

Of the three deals you've closed, did you source them from agents, wholesalers, or your own marketing?

Bo Smith · Answer

The hard truth? You're gonna kiss a lot of frogs. Your cold-call approach is actually solid, but you're not following up hard enough. One routine call isn't enough. The agents who send you deals remember the guy who called consistently for 3 months, not the guy who called once and disappeared. I'd target 15-20 agents in your market, call them every 2-3 weeks, and actually have their direct numbers. When you call, lead with a specific property you're interested in or a deal you just closed, not "send me deals." That shows you're actually working.

On wholesalers -- the Facebook groups and Zillow lists you're seeing? Those are already picked over by 50 other investors. Your edge is getting off-market deals. Go to courthouse steps, build relationships with cash buyers who do wholesaling, talk to REIAs not to socialize but to find the 2-3 people actually closing deals. And yeah, the margins on these deals suck at first. I've taken -10k on flips when I needed deal experience and deal flow. That's actually fine if you're learning the process.

How many contacts do you actually have right now -- agents, wholesalers, contractors -- that you could call and get a deal within 48 hours?

Gavin Kytl · Answer

Hey Peter, thank you for the insight. It's actually very useful to hear feedback from an agents perspective on investors. I myself can admit I've contacted agents and not followed up. I can get so wrapped up in the day to day sometimes and forget the processes. Funny enough I just submitted a request to find an agent and they gave me you. Look forward to hearing from you.

Bo Smith · Answer

The phone call approach is solid but you're right -- they won't remember a cold call. What works is consistency over time. Call the same 20 agents every two weeks, not 100 agents once. Show up. Let them know you buy houses and close fast. Eventually you become the person they think of when a fixer comes across their desk.

The wholesaler Facebook group deals are usually overpriced because desperate buyers bid them up. That's the trap. Instead, build direct relationships with 3-5 good wholesalers and make them your first call. Pay them on time, close fast, and treat them like a partner. When a deal comes in that doesn't pencil, you tell them straight. They'll remember that and send you deals that actually work.

The deals you're analyzing that don't pencil perfectly are the data you need. Are they overpriced at offer, or are your numbers off? If it's the latter (most investors are too optimistic on ARV), fix your underwriting. If it's wholesalers listing trash for absurd prices, just pass -- there will be better deals. Have you tried reaching out directly to wholesalers doing deals in your area instead of waiting for Facebook posts?

Gavin Kytl · Answer

Thankyou Bo for your thorough response. I will definitely keep going to more of the meet ups. I have met a couple other flippers and they don’t share their wholesale/agent contacts since I might take deals they possibly could’ve grabbed. Which I understand and likely would keep mine as secret as possible also. I’m located in the Los Angeles area and mainly look at wholesale deals since they’re off market. I’ve visited a few fixer uppers that were on the MLS and there’s too much competition it seems.  I also do plan on doing a direct to seller campaign once I lock in a decent pipeline with agents.

Bo Smith · Answer

You're doing the right things, but your timing and approach need tweaking. Calling agents who list "fixer uppers" is solid -- but one call isn't enough. Most agents ignore cold calls. You need to follow up once a week for 4-6 weeks before they take you seriously. Don't be salesy about it. Just "Hey, still looking for deals in [neighborhood], got anything coming on the market?" That repetition works.

The wholesaler Facebook groups thing -- yeah, those deals are often overpriced because there's a supply problem. Good wholesalers have a buyer list and move deals fast offline. The public wholesale groups are leftovers. Consider that a lead source for comps and market intel, not your main deal pipeline.

But here's what actually works: Get into your local REIA and build relationships with active flippers. These are the guys who know what wholesalers are actually doing deals and which agents have access to off-market inventory. Three months of showing up to meetings beats three months of phone calls.

On deal analysis -- the fact that nothing "pencils out perfectly" isn't actually a red flag. Real deals in competitive markets have slim margins. What matters is whether the deal works IF your rehab estimate is accurate and IF you can exit on timeline. Most beginners get burned because they underestimate rehab costs, not because the deal was bad.

Which city are you flipping in? Are you looking at wholesale deals or regular MLS inventory?

How are you finding quality agents and Wholesalers?

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