I have a buyers list, Now What?

Question

I am new to the wholesale process and am stuck trying to make my first deal.  I have my sale agreement and all my assignment papers and even a great buyers list.  I have a very decent list of cash buyers looking to purchase properties in the suburbs of Chicago.

My problem is that I do not have any homes to offer them!  Can anyone help me with the process that they use to find properties to wholesale.  I have thought about doing bandit signs (but heard that was illegal) any thoughts?  Anyone been fined?  Do I do the “yellow letter” using listsourse.com ?

I am really confused on what to do next.  I have cash buyers now I just need a good deal to give them.  I feel like I am close.

Mike Hurney · Answer

@Ryan S. Congratulations, you've done it right so far. Most "Flippers" I speak with, have an overpriced property THEN they start to search for Buyers.

Now, find out EXACTLY what these cash buyers are looking for.

Then I like mailmen, in addition to my regular networking.

Ryan S. · Answer

Wow thank you for all the information.  Where do I get all of the lists somewhere in my city or online?  Some people were saying use ListSource.com

Zach Schaar · Answer

Building a strong list of reliable cash buyers is a difficult task. Since you've already done that, you've won half the battle already. You really only need a couple of good buyers, and I'm sure over time you will develop strong relationships with some, and others will taper away. But that's normal.

As far as attracting sellers, there are a plethora of ways to do this. As mentioned earlier in this post, @Jackie Lange  pretty much nailed it! Also, don't be afraid to use your creativity and networking skills to find deals.

Amongst the endless list of marketing campaigns, a lead generating web-site teamed with a series of other marketing techniques is also helpful. Driving people to your web-site or 1-800 number for a free report or free message on how you can help them get rid of their house fast is music to their ears, and they WILL reach out to you if they are motivated, and if it's a deal, your buyers WILL buy.

Gary Parker · Answer

Nice post @Jackie Lange .  I agree neighbors are a great source of information.

Jackie Lange · Answer

Vacant house owners are often the most motivated sellers of all.  Here’s why:
	 
	 Since they are not living in the house, they are most likely making  payments on two houses, paying utilities, taxes and insurance on two  houses, and maintaining the yard on two houses.
	 
	 A vacant house is more susceptible to vandalism to make matters worse.  
	 
	 After a while the owner will not be able to maintain two properties so  the utilities will get turned off, mortgage payments will be missed, the  yard will not get mowed. and eventually, the taxes and insurance will  not get paid.
	 
	 With tax bills coming out in October, the owner of a vacant house is  facing the prospect of paying a big tax bill for a house he/she no  longer wants.  If taxes are not paid by the end of January, high  interest is added to the payment.  
	 
	 So, October through January is an excellent times to market to owners of vacant houses to either buy or maser lease their house.
	 
	 Here are 8 ways to find vacant houses & motivated sellers:
	 
	 1)  Code Violations:  When the yard does not get mowed, or the  fence is falling down, or there’s a tree laying on the roof, or vandals  have broken in to the house…neighbors will call Code Enforcement to  complain about the eye sore in the neighborhood.  Code Enforcement will  make an attempt to contact the owner to remedy the problem.  If it is  not corrected quickly, Code Enforcement will fix the problem, and then  put a lien against the property.  
	 
	 When a tenant complains that there is a problem with a property, Code  Enforcement will give the landlord a little time to fix the problem.  If  the landlord does not fix it, and Code Enforcement things the problem  is a safety hazard, they will condemn the property which means no one  can live in it (no rent) until the problem is fixed.  
	 
	 You can GO IN to code Enforcement to get a list of properties with Code  Violations.  Many of these are vacant houses, especially the houses  which have been condemned.   
	 
	 2) Dead meters:  After several months of no payment for  water, electricity or gas, the utility company will turn off service to  the house.  These are called Dead Meters.  You can go in to the utility  company to get a list of properties with Dead Meters.
	 
	 3) Mailman:  Talk to the mail man/woman in various neighborhoods.  They  know which houses have mail that is piling up or which owners have  turned off mail delivery.  They also see which houses have tall grass  and appear to be vacant.  Offer a referral fee for information about  vacant houses and they will keep you supplied in leads. 
	 
	 4) Bird Dogs:  Go to the part time jobs section of  Craigslist to hire someone to drive certain areas to look for vacant  houses for you.  Tall grass, mail piled up on the porch, broken  windows... all signs of vacant houses.  They just need to supply the  address and a description of what they see.  If there is a FSBO sign  they can get the phone number for you.  Offer to pay them $500 for any  houses you buy or a flat fee for each lead they supply or just pay by  the day.

You can find a lot of vacant and/or run down looking houses just driving around.
	 
	 5) FSBO sites:  Look at the interior pictures of houses  advertised on FSBO sites.  Look for signs that the house is vacant or  mostly vacant.  (this would be a great job for your virtual assistant).   FSBO sites have a “contact owner” link which will email the owner  directly or give you their phone number.  Try to call them first.  If  you get a voice mail, leave a message then send them an email as a  follow up.  
	 
	 6)  Landlords:  Check craigslist or newspapers for  advertisement for properties for rent.  If they are advertised, they are  probably vacant.  Perhaps the landlord would like to sell or there may  be an opportunity to master lease.  Be sure to ask if they have any  other properties.  Most landlords own multiple properties.  When they  are ready to sell one, they are often ready to sell many more. (your  virtual assistant can search craigslist and other classified ads for  you)
	 
	 7) Eviction Court:  It is filled with tired landlords  who WISH their house was vacant.. of the current tenant.  These are  often the most motivated sellers of all.  An offer to buy or master  lease their house is welcome.
	 
	 8) Probate:  When an owner dies, heirs are faced with a  big task of settling the estate, getting rid of the contents of the  house, and selling the house.  Many heirs just want the whole problem to  go away as fast as possible because they don’t have time to deal with  it.  You can get the list of probate cases at the county or hire someone  to get it for you.  Some counties even have this information online.   Once you get the list of probate cases, you need to determine if real  estate is part of the estate.  
	 
	 Keep in mind that, after a death, not all properties go through  probate.  You will find many of the other properties from through Code  Enforcement, Mail Man, and Bird Dogs.  
	 
	 Once you get this list of vacant houses, you will need to search the  county tax records for the owner’s address so you can send a postcard. Or talk to the neighbors, they usually know where the owner of the vacant house is

You or your assistant can upload the address and your postcard to  https://click2mail.com/ for quick and easy delivery of your message.  
	 
	 Vacant house owners are the most motivated house sellers.  You will find  your return on investment, and number of deals closed, for marketing to  vacant house owners is much better than other properties.
	 
	 Remember, October through January is the ideal time to market to owners  of vacant houses because they got a big tax bill and either have to  write a big check to pay taxes on a vacant house or get rid of the  property.  Many decide to sell!