I'm a complete newbie to this and not even sure where to start. I have a regularly updating database of every vacant residential and commercial property in the U.S. but I'm not sure what I should do first.
I have a very busy family so my time to actually go out and visit properties is very limited. And, of course, I can't possibly visit the vacant homes that are outside of my area. But, I don't want to spend a ton of money sending out mailers to all the vacant homes in the database.
Does anyone have any suggestions on what I can do to get started with wholesaling using this database?
Any suggestions are appreciated.
First of all, research the areas that you should concentrate in. A couple of sites have good charts and maps to study: realtor.org (look in Top Menu "Research and Statistics) and another site is ngkf.com (Top Menu again under "Research.")
Choose one area at a time. Then contact a real estate agent in the area (look in this Biggerpockets forum for active agents in any areas around the country) and have him/her share with you even more specifics and recommendations of what is a good area within the area :)
Now send a test mailing to no more than 500 - target single family or small multi (4 units or less) and see the response.
I would not do any due diligence (i.e. see properties, run numbers, etc.) until I get a call and serious interest from the owner.
Good luck! :)
I suggest you start where you live.
While I know some people do long distance investing and do it effectively, I cannot imagine wholesaling long distance. One key to doing good deals is knowing your market. The farther way a market is the harder it is to know it intimately.
The Provo–Orem metropolitan area has 1/2 million people. That is about the same populations of my market, Baltimore. I can't handle all the deals I can find here, why would I go long distance.
Yes long distance investing can be done but you said you are new. Why make it hard on yourself?
To find out about an area go to IREM.org search for ARM certified property managers. Call 5 ask them what parts of the city they like/dislike and why. Ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.
If you locate a distance deal that is legit contact the local to that area REIA club call the president and ask for a couple wholesalers from the club connect and see if you turn the deal over if you can get something.
You can wholesale anywhere where you have a good buyer. They can give you advice on value, you just have to generate calls and negotiate with sellers. You can find buyers through listsource.
However if you have a large market in your backyard then I would jump into that one with both feet.
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