Wholesaling Profits v. Marketing Costs
I've read posts from Wholesalers seeking input about the right marketing mix to employ for maximum impact and others grumbling about the relatively high marketing costs v. success rate. I'm actually surprised these costs aren't more of a barrier to entry for folks beginning their real estate career wholesaling. I was thinking about that last night while grumbling about how difficult it is to find an off market deal, priced accurately, and how many garbage deals one has to wade through to find anything decent. Has any Investor/Rehabber or Wholesaler known of or been involved in a workable business model whereby the Investor funds a large percentage of the Wholesalers marketing costs in order to be given first refusals on every deal? Seems like a win-win to me, but was curious as to whether anyone has tried this or any type of mutually beneficial variation?
Most Popular Reply
No investor that I have ever heard of would pay for a bird dogs marketing expense just to get first crack. Understand that if a bird dog gets a great deal under contract they will sell it easily and fast to that investor buyer. There is also no guarantee you would get first crack as most bird dogs will take the highest bid after shopping it a bit.
You should do bandit signs in target areas you want to buy homes in. Most of our bird dogs bring us homes this way and it has been successful.
Good luck
- Curt Davis
