Ive been doing my research on wholesaling last few weeks and now that Im learning, I have started to notice things in my area. One of those is that there is many bandit signs throughout the area and even some that advertise on the radio. Im just curious if an area could be saturated with wholesalers and thus the competition make it hard for a newcomer to come across good deals and be able to compete for these good deals?
My opinion is that there is always room. You just have to find your competitive advantage.
If the area is saturated with bandit signs, then definitely don't do bandit signs. If people are advertising on the radio, then stay off the radio. Have you noticed any door hangers? You could try those. You can get them printed up for about $.10 each. Who are people marketing to? Is anyone targeting specific niches...absentee owners...tax liens...probates...etc. Your job now is to figure out what niche isn't being fully exploited and exploit it!
South Bend...I seem to recall there being a major university there, right? (My sister is very angry now!!!) So, there's a phenomenon that happens in college towns. Parents figure out it's cheaper and easier to buy a house, while the kids are in school, than to find and pay for campus housing. Well, when those kids graduate, no one needs that house any more. Maybe you figure out how to market to graduating seniors? Just an idea.
Probably is room.
When in new areas I'll often call those signs to introduce myself.
9 times out of 10 it goes to a google voice number and they never return a call.
So, just answer your phone and be consistent.
Pedro, So, you've been studying wholesaling several weeks?
Have no idea how many times I've said this, might be posted 1,000+, first learn the basics or RE.
Competition in your area? Probably very little, if I were to go to your area to do a wholesale deal, I think there would be no competition from those trying to wholesale.....don't mean to sound arrogant, but that saved me 50 words at least, by that I mean wholesalers usually begin in that niche, learn guru stuff, listen to wheeler-dealer types on here and most don't know much if anything about RE.
You also don't need signs or telephone recorded messages.
Many, but some much more than others, seem to try to do WH as some unique business placing emphasis on the "deal" rather than from a conventional RE approach.
A wholesaler does pretty much what a listing agent does, then what a buyer's agent does, while agents use standard purchase contracts, taking the buyer and seller to closing, wholesalers are trying to do both agent jobs and the only real difference is that a wholesaler assigns the contract to the buyer. That one, little act of assignment is what forms the "wholesaling technique" that gurus have turned into some business model.
So, if you are trying to do the same thing that agents do, does it not stand to reason, a bit of common sense, that you should know what agents know?
If you do know what a good agent knows, you won't have competition in wholesaling really, buyers, real buyers, will want to deal with someone who knows what they are doing rather than some guy chasing his tail so to speak.
And, when you know as much as an agent, the only other step is in how to finance a purchase, and/or partner and who won't have to be stuck just trying to wholesale.
Chances are, if you had started weeks ago learning the basics, the idea of wholesaling would take a few minutes to understand, a day or two to set up your business plan and you may already have had a property by now. But, you're still kind of lost because you didn't start at the beginning. You have time to start over. :)
@Pedro Oliva Yes, there is room. Think differently! Do something different to get your leads vs. the normal bandit signs and direct mailings. Good luck!
The level of advertising and activity could indicate that it's a GOOD MARKET for REI.
I agree with the others - look for areas where others are not advertising. Some still have very good results from newspaper ads. You can also do PPC (Google AdWords) search ads (that go to your Landing Page) and get your share of that traffic - your $ is just as good as anyone else's online.
Also, I find that a lot of people TALK about direct mail (to absentees, etc.) but not that many people actually DO IT. So think about direct mail. I like it because you can consistently touch people that you KNOW have equity, which is a MUST in order for them to sell at a discount.
So, forget the competition. You have the same ability to reach out to people. Go win your piece of that market!
“Don’t look back. Something might be gaining on you.” ~ Satchel Paige
Just because other people are wholesaling in your market doesn't mean they are going to stay with it. It doesn't mean they are going to be committed and consistent and have the passion as you will. You must get creative with your lead generation.
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