Hi Bigger Pockets Community!
I'm looking to start wholesaling properties and am currently working on my cash buyers list. I've been trying to reach out to rehabbers, put ads on craigslist, send out e-mails/business cards, etc. but I feel like I'm doing something wrong because I'm not getting many responses even though I have amazing deals. Any tips?
@Claire Hebb maybe they arent as good as you think. I also would say if you have closed a deal, talk to that title company, they know who are the cash buyers, and big players.
1. join local REIA.
2. get a property under contract and market it - make sure it's truly a good deal. run those numbers by people here.
3. network, network, network.
4. get farm list of cash buyers within past year, that's right year. speak with several title companies about heavy hitters.
4a. there are certain services, out here on the westcoast we have proeprtyradar.com. you can do all sorts of amazing searches. find something that's offered in FL
5. go to auctions, see who's bidding, speak with them.
6. look for FSBO ads on craigslist of properties that have recently been renovated, rehabbed, etc. simply put those keys words in search box
that should be enough for now.
Please, take this as simple insight & not a personal evaluation. Many new wholesalers miss some details in their numbers that an experienced investor recognizes.
The experienced investors with whom I network are super generous with their insight & will help a newbie evaluate a deal. Have you made enough contacts to ask for help? Reach out.
Treating an experience investor to a cup of coffee will be your biggest ROI.
Even better, there must be other investors, right here on BP, FROM THE AREA YOU HAVE YOUR GREAT DEALS. Reach out & ask them to review your deals.
You can't worry about them 'stealing' the deal, if you have it under contract.
Good luck. I look forward to the day you're the investor sharing your wisdom with the newbie.
Tami (not Chad)
@Claire Hebb I see from your posts that you really want to break into wholesaling. I know a lot of investors down there and can tell you that Miami is very competitive. Don't let that discourage you! There are deals everywhere and even more cash buyers...
I think you are on the right track in regard building your cash buyers list. There are obviously paid and non paid way to get cash buyers, and here are a few tips that may help you.
If you want to build you list fast then you can send postcards to the cash buyers and set up a simple squeeze page to capture their email address. First you have to find the cash buyers. Everything comes from public records! If your budget is low then you can get these records from a real estate agent or a title company. You will probably need to have a relationship with these two in order to ask for the list but it's free. The two paid ways to get the cash buyers in order of cost are ListSource and FindCashBuyersNow. (disclaimer: I have no affiliation with either of these. I am just a user of both).
Once you get the list of names you can mail them a postcard and direct them to your squeeze page. You will need an autoresponder to capture their name and email address. Later you can send them an email when you have a property for sale.
Let's assume you can't send postcards or pay for records - no worries! Here are some free ways to get cash buyers but it will just take longer. I recommend doing the postcards simutaneosly with everything listed below if you can afford it. As a matter of fact, you should be marketing to cash buyers everyday in conjunction with marketing to motivated sellers! I call this parallel marketing.
Think of this like the ticket scalper who has a sign that says "NEED TICKETS" one one side and the other side of the sign that says "GOT TICKETS" ... LOL. A weird analogy I know, but it's true. If you are wholesaling you are the middleman. I even have cash buyers that become private lenders for my rehabs!
1) Craigslist: Go to Craigslist and look under the “apartment/housing” category. This is the section that shows rentals. Anyone who has a home for rent, rent to own or “lease purchase is an investor. Contact them. If they have homes for rent, they may need other rental properties to add to their portfolio. Look for terms like “completely renovated” You can also place ads for properties you have for sale to build your buyers list.
2) Google Search: Google is my secret weapon. Really. If I can’t figure it out or just need more information, I always search Google and I often find buyers for my wholesale houses. You can just type in, “we buy houses” or “cash for houses” in your area or city and you’ll find plenty of A+ buyers. I’ve flipped many houses to buyers in under 24 hours using this simple search alone.
3) Other Wholesalers: Many wholesalers list the homes they’ve recently sold. Guess what, many of these homes are sold to investors. So simply copy and paste the address and then see who bought it. And you’ve got a new investor you can contact. And you know how much this investor paid for the property and where he’s buying. You can also get on their lists too and buy and sell the properties to your list!
4) Bandit Signs: Put up bandit signs in the neighborhood’s you want to sell homes in. And here’s the key, don’t make them all fancy. I use black magic marker and hand write all my signs or order signs that look handwritten. Make it look like you’re an individual, not a company. Buyers pay attention to these signs. Do this every time you have a property for sale. If you don’t have properties just do it with a “ghost” property: " Investor Special 3/2 Needs Work, Cheap- Cash! xxx-xxx-xxxx. Trust me this works! You phone will be ringing off the hook. I would use a tracking number for this campaign.
5) HUD Landlords (Section 8): Get a list of Section 8 properties for rent from HUD. This list will have the property addresses, bedrooms and more importantly the investors name and phone number. You can then call them or mail a postcard to these investors letting them know that you have discounted properties for sale in the area near where they already have a house. Ask them if they would mind if you contacted them when you had a great deal. Most will say "YES". Then add them to your list of lower end houses. You can also send them a voice blast using SlyDial. This will only cost .10 per message versus .50 for a postcard.
6 ) HUD Foreclosures: The HUDHomeStore.com is a great source of investors. All you have to do is go there and look at previous bid results. Record each sale in a spreadsheet, then cross reference the property address in public records to get the investor name and mailing address. We use the property appraiser website in our area. You can also record the agents name in the transaction as many times they specialize in HUD Foreclosures and have cash buyers they work with.
7) Local County Auction: You can go to the local county auction and meet cash buyers. Introduce yourself and pick up some business cards. These are all investors! Another little dirty strategy is to go to the houses that are up for auction before the sale and put signs in the yard and stickers on the front door that say “Want to get more properties like this one? We sell deeply discounted properties in “Miami” visit www.YourSite.com to get the hottest deals in town”. There are online sites like www.StickerGiant.com that can produce these stickers for less than .50 ea.
8 ) Landlords: Local “Penny Saver”, “Thrifty Nickel” papers is a great little strategy that nobody ever thinks about doing. Just go down to your local corner “mini-mart” near the areas you want to flip houses and pick up a copy of the current (even old) local papers. Landlords galore.
9) Hard Money Lenders: Hard money lenders are great. They make money when their clients buy rehabs. So, if you can help them make more money by bringing great deals that their clients buy…. you just got access to their entire client base.
I think you get the idea here! I hope this helps you and if you have any questions please fell free to ask. Good luck!
If you find a true deal, you will have no problem selling it. In fact you most likely will establish relationships with a very few people who you trust and know are actual, true buyers and those will be the ones that will get first dibs on your deals. The hardest part of wholesaling it finding the deal, a true deal. My suggestion is to concentrate on that part so you are credible and someone buyers want to work with right out of the gate. Reputation is everything with wholesaling, in my opinion.
@Tim Herndon Thank you so much for the tips, it truly means a lot to me! Quick question, as far as looking for the "We Buy Houses" people, I've been told that you want to stay away from those sorts of deals because they're looking to get the absolute bottom, bottom price. What do you think about this? Thanks!
@Christina R. I totally agree with you on that...something I need to get on top of.
Thanks so much for your tips though I appreciate it!
Here are some things that aren't often talked about...
.Drive around the neighborhood and walk into the houses that are obviously undergoing a complete renovation. As the workers for the investors phone number and give that investor a call.
.You can do this same thing with the MLS. Search through your states MLS/Area and click on the properties that look like they've been newly renovated.
Read the sticky threads at the top of the BP Wholesaling forum for more ideas.
@Claire Hebb In regard to the wholesalers, I look to see who they are wholesaling their properties to. Sometimes they post SOLD on their websites. I just wait until the docs get recorded in public records, then look up who bought the property. Then I call them or mail them a postcard.
I sell a lot of other wholesalers properties and that's why I like wholesalers. Most are just starting out and sometimes they find deals but can't sell fast enough. Since I have a big cash buyers list I sell their properties and we split the assignment fee. The great thing about this strategy is I don't have to pay for the marketing. This is really a strategy that will work well with your own wholesaling business. Just make sure you get a Partnership Agreement signed for each specific house.
I hope this clarifies everything.
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If you actually have "amazing" deals then it shouldn't be a problem finding real cash buyers. There is NO secret when trying to build a buyers list....you have to get out and network...network....and network 24/7/365 days a year! If your not going to weekly REI meetings and picking up the phone and calling people and trying to track down referrals that would be my starting point. It takes months to build a good list which is why consistency is usually what ends up paying off or the same reason why most people quit.
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