How to start Wholesaling RE & Find Buyers List

Question

Hi, everyone I’m a newbie here!! Hope everyone is having an amazing day. I’m looking to become a wholesaler. I want to learn more about wholesaling and real estate investing. I was wondering how can I go about finding investors that like to fund deals. Thanks in advance:)

Thomas Heyde · Answer

Hi. While I'm in the very early stages of getting my education, and don't have any deals under my belt yet, this is what I've gathered so far. You need a combination of three things to be RE investor; time, money, and knowledge. If you don't have the money or knowledge to safely get your feet wet wholesaling seems like a very viable option. You invest your time hunting for off market distressed properties and rather than taking on the flip (or hold) yourself, you sell your find to someone who has the money and/or knowledge to finish the deal. If an investor has money and knowledge it may be more beneficial to make a little less money on the deal to not have their time spent hunting the deal. The wholesaler appears to take very little risk, but in return does not enjoy the full fruits of the find.

Wale Lawal · Answer

@Markea Bryant

There are many different ways that you can find buyers for your wholesale deal. You’ll have to find a strategy and process that works for you. Here are some of the most common methods wholesalers often use.Bandit SignsA bandit sign is a small, poster-sized sign that you’ll often see on lawns and intersections advertising different services. Many cash buyers and wholesalers post bandit signs that say “We Buy Houses” or “In Foreclosure? We Can Help” or something along those lines.These signs are not only effective for attracting motivated sellers, but they can also be useful for finding buyers as well. If you post them all over town, you’ll likely get calls from a few buyers wanting to know what kind of deals you have available. So make sure you include your contact information such as your phone number and website on the sign, so they know how to get in touch.Build Your Real Estate NetworkNetworking is always a good way to find leads, no matter what your business. Start by leveraging your personal network and see if anyone you know or work with is interested in buying an investment property. You could also join your local REIA or real estate investors association and pass out your business card.This is a great way to connect with potential buyers because you already know that they’re involved in real estate. Also, be sure to join any other real estate groups in your local area. If you want to find qualified buyers near you, you'll have to meet them in areas they frequent. You should also check the local newspaper for listings. Many wholesale buyers advertise their services in the paper, which will make your job much easier. Find Local LandlordsAnother way to find potential buyers is to connect with local landlords. Not all flippers sell the homes they renovate - some keep them to rent out to tenants. Plus, many real estate investors are involved in multiple aspects of the business and may own a rental property in addition to doing fixes and flips. Or, at least they may be able to point you to someone in your network who may be interested.You can find landlords by contacting local real estate agents, calling for rent signs, or checking county records of the owners of investment properties in the area. A good way to find landlords is to check with the county auditor. You can use Zillow to pull a list of all the homes recently sold in the area. Then visit the country auditor and check their records.There, you'll be able to determine the name and contact info of the new buyer. Look for any buyers that don't list their new purchase as their primary residence - chances are that means it's an investment property.

You can also post about your properties on social media or craigslist. Posting an ad on craigslist is similar to creating a bandit sign in cyberspace. It has a section dedicated to real estate where you can post about your deal and field leads from interested buyers. Likewise, if you have a large following on Facebook or LinkedIn, you could try posting there as well and see if anyone in your personal or professional network is interested. You could also try to find users who advertise themselves as real estate investors in their profile and try sending them a direct message. You may or may not get a response, but if you are persistent, you’ll eventually find a solid lead.Real estate forums are another good place to look. Reach out to anyone who posts regularly on a popular real estate board and see if they have any interest in your deal or advice on building a buyers' list. Even if you don’t find any direct leads this way, you can often find a wealth of information that may point you in the right direction.

All the best!

John Slater · Answer

Agreed - I have tried working with many wholesalers but am yet to find a good one in 10 years.  That being said, I have wholesaled and it is great strategy that does serve a purpose.

@Scott Mac - you're not wrong, it isn't an easy business but if you can make a solid 10-15k per transaction you don't need to do many to stay away from the 2nd job.

@Thomas Heyde - the biggest challenge people miss when getting into wholesaling is whether a flipper or wholesaler, the business is about finding motivated sellers to work with.  As a wholesaler you might not carry the weight to flip, but you are looking to sell to an investor who still wants some meat on the bone.  Some wholesalers try to hit that home run and make the big bucks without doing the work of a flipper and is when they run in to trouble finding an end buyer.  Be conservative in your numbers, take the singles, and with consistent lead gen (probate and pre-foreclosures and vacant) are my favorites, occasionally you come across a home run.

Lydia R. · Answer

There are lots of options for finding buyers for deals. Here are some of my favorites

1. Facebook groups for investors and wholesalers in your area. Look specifically for groups that allow deal posting because not all of them allow this

2. Facebook marketplace

3. Local REIA meetings and real estate meetup groups

4. Foreclosure auctions. This is one of my favorite strategies. Everyone bidding on properties at the auction should be on your buyers list. You already know they're buying and they have the cash to close.

5. Listings in the area. Any time I have a property under contract I get on Zillow and look at flipped properties that are for sale or recently sold. I call the seller because they were the investor who rehabbed the house or the agent who represented the seller to find out if they want to buy more property in that same area. Same goes for rental properties. The owners of active rental listings are landlords who may be interested in acquiring another rental property in the same area.

6. Propstream--great tool for finding hedgefund buyers and large investment groups.

7. Hard money lenders. Another one of my favorite ways to find buyers! Hard money lenders have a database of investors they've loaned money to for real estate investments. They can push your deal out to their entire list. Why would they do this? Hard money lenders dont make money unless they give loans. Pushing out your deal directly benefits the lender because they make money if an investor decides to buy it.

8. Mid size and large property management companies. Same reasons as a hard money lender. They have a database of clients who own rental properties. If someone wants to buy another one the property management will most likely be the one to manage it. You can always count on someone to do something that directly benefits them.

This is by no means a comprehensive list but it should be enough to get you started. Hope this helps!

Jennifer Dixon · Answer

There are several companies wholesaling ALL over - yes, some are not --what we would call the most upstanding, but I think you're missing a very real and surprisingly larger portion of the demographic - or at least discounting it far too heavily in the form of a negative perception based on ignorance vs actual knowledge. Truthfully, some people wholesale their homes - ie sell to a wholesaler bec the process is just plain easier. I bought a property at wholesale bec the owner was a LEGIT hoarder. Could that house been listed on the MLS? sure. Would people have wanted to go in ? Only a few. Would the person with the hoarding propensity be able to tolerate other "strangers" rummaging through their precious belongings? Probably not. Wholesaling definitely serves a purpose. Some folks do give it a bad name, but, I for one, am thrilled to partner with wholesalers as much as possible, and I'd like to amp up my own wholesaling expertise bec I am doing the home owner a service.Many realtors talk badly about wholesalers and I frankly just think it is a lack of knowledge forming strong opinions.

Markea Bryant · Answer

Nice to meet you! Thanks for the information.

Nicole Heasley Beitenman · Answer

I recommend becoming a regular at your local REI meetup or REIA meeting! There are always wholesalers at ours.

Scott Mac · Answer

Thanks,

I really have no opinion on it, I was just guessing how it worked.

It seems like a long shot finding people willing to sell like this at a price point where you can make a profit.

I also see people who intend to rely on this tactic to get a down payment together vs work a 2nd job for the money.

Kind of like , if you're looking for golden nuggets in Golden Gate Park, your going to have to look aa long time just to find one.

Or am I wrong and someone can do a ton of deals like this every year and outstrip the income from working a second job?

Eliott Elias · Answer

Your main focus should be to find the deal. Money is everywhere, hustle is scarce.

How to start Wholesaling RE & Find Buyers List

Most Popular Reply