Hello fellow investors, i just wanted to find out what is the best way to get your first ever wholesale deal if you don't have marketing capital but you are eager to do the work, hustle and close your first deal? I have been driving for dollars using deal machine to send automatic mailers to potential sellers but i haven't heard back from any one. I have also been using craigslist to search for properties but most of the properties are from other investors or realtors so it's difficult and i understand that this is the nature of the business. I know that I need to continue to be consistent and determined to get the result i am looking for but is there anything else that i should be doing to increase my chances of landing my first deal? Thank you.
@Albert Mainja I Love this question pop up - it’s right up my alley Albert.
Not sure if you are already doing so, but I would definitely recommend you market to LLCs - so many of our deals come from that. You’re removing a lot of potential deals if you remove LLCs. I would also recommend pursuing any neighborhood A-D as long as it matches your acquisition criteria and passes all of your tests.
Now as far as driving for dollars - there’s a better way!
We are wholesalers of many types of properties, and one of the reasons it is so great is because we can do it from literally anywhere, we don't have to be where we are looking to buy - this alone saves us valuable time that can be spent elsewhere.
We are direct mail acquisition machines all without leaving our office (or home, or wherever we happen to be that day - haha). We pull assessor data from a direct link of the type of properties in the areas we want and send ALL the property owners an offer. (Not only out of state or tax delinquent.)
We scrub the list and then spend a tremendous amount of time on pricing, because although these offers may be a lot less than retail, they are not out of the question. We explain in our offer letter to sellers that we are serious investors, we are not agents/brokers, we pay cash, and are prepared to close in as soon as x number days. Then we wait for the motivated sellers to call us - and believe me they do. It works amazingly well, and it is how we get there first.
Knocking on doors (aka "driving for dollars") is an outdated way of doing this nowadays. We now have DATA and computers and direct mail making our lives easier and our time more lucrative.
Please feel free to message me if you have any questions!
@Sonia Captain Thank you so much for your response and the information you provided, just to clarify on your first suggestion, how exactly do i market to LLCs with little to no capital? I understand that driving for dollars is an outdated way of doing things nowadays but like i mentioned in my original post, i do not have the capital to spend on marketing so i'm really trying to get my first wholesale deal, this will enable me to scale and adopt more advanced lead capturing techniques. Thank you for sharing your contact info i will get in touch with you soon.
Cold calling those people is free
@Albert Mainja It’s easy to start out with no marketing money believe it or not. You just need to budget for records and mail basically. Then get funding through another source (several out there) and build capital that way until you can fund your own deals.
It's really easy to sell land with no marketing money too - TONS of free places to post. And yes, feel free to message me for any other help.
@Inna SIn I agree 100%, I've started cold calling with my driving for dollars leads. Thanks
@Sonia Captain This is very helpful feedback thank you and i will be in touch.
@Albert Mainja what's up man! I'm the creator of DealMachine. You have to add more properties than you have! Aim for 200+ distressed properties, and follow up with them all once a month for 3 months. It is a numbers game, so far it looks like you are 1/4 of the way there to adding "at least" 200 minimum.
@David Lecko Hello David, thanks for reaching out and the quick tip, my goal is to have at least 200 minimum by the end of this week coming up, Quick question, is there a skip tracing subscription option or on the app or is it only per property? it may be user error, I may be navigating the app wrong.
Drive for dollars if you have NO marketing budget.
Then cold call the 💩 out of them!
Once you get some more capital to invest, consider paying someone to generate leads for you, or farm large lists from companies like ListSource.com
With that list, you can then Skip Trace the properties, pay for an auto dialer (e.g. MojoSells.com) and maximize your efficiency ;)
The biggest part about marketing to homeowners is getting them on the phone and making offers.
Cold calling them (or prospecting as we affectionately call it) gets directly to that point!
Best of luck :)
Handwritten bandit signs on 18x24 white boards posted all over the area and specifically target c class areas . Once you find the deal and get it setup ..then market it to investors that are looking for cheap rental houses