Wholesaling

15 Replies

Hi Friends,

I want to start wholesaling in near Los Angeles (Glendale, Pasadena, Montrose). I'm looking to get pre-foreclosure houses under contract to sell. I'm wondering if people have had more luck with bandit signs, direct mailings or door hangers to find those types of properties. 

Thanks so much, 

I'm an investor/flipper in the south bay.  I don't do any marketing anymore but when I did i had some success with direct mail.  Bandit signs are great but they can be a lot of work.  City throwing them away, people taking them, etc.  

However, you can usually hire someone to put bandit signs out for you for pretty cheap.  I recommend Friday afternoons, as the city is closed so they won't take them down until Monday morning.

The best thing i find though, is door knocking.  Find a farm and get to know everyone.  Network, ask questions, be help and you will find deals.

If you'd like to farm in the South Bay, I'll be happy to buy your deals!! :)

Good luck!

Hi Laurence,

You are in an awesome yet competitive market.  The secret to thriving in a market like that is to pick 2 or 3 marketing channels and keep marketing to the same lists.  Hit them over and over again and you will get noticed.  

Our team wholesales 10-15 houses a month and our best deals come from the prospects who we have talked to 15-30 times.  I have always been a fan of direct mail and it is the primary way we generate our business. Good luck! 

@Laurence Walsh-Hodson , direct mail without hesitation. It allows you to control what opportunities come to you. Based on my list and marketing message, I know a person who contacts me has equity which means I can make a deal happen provided we can agree on a price. Two, because I've told them how I buy i.e. quick, for cash, no commissions, no closing costs, etc. they have an understanding of my program. Don't get me wrong, I know investors who use bandit signs with success. For me the risk of being fined (illegal in my market) and the quality of leads that it generates just is not worth it to me. 

Originally posted by @Shaun Caldwell :

@Laurence Walsh-Hodson, direct mail without hesitation. It allows you to control what opportunities come to you. Based on my list and marketing message, I know a person who contacts me has equity which means I can make a deal happen provided we can agree on a price. Two, because I've told them how I buy i.e. quick, for cash, no commissions, no closing costs, etc. they have an understanding of my program. Don't get me wrong, I know investors who use bandit signs with success. For me the risk of being fined (illegal in my market) and the quality of leads that it generates just is not worth it to me. 

 Thanks Shaun, I guess a follow up question is how do you get your direct mail list? From a service? Also, I should see if bandit signs are illegal here. Best, Laurence

Originally posted by @Todd Toback :

Hi Laurence,

You are in an awesome yet competitive market.  The secret to thriving in a market like that is to pick 2 or 3 marketing channels and keep marketing to the same lists.  Hit them over and over again and you will get noticed.  

Our team wholesales 10-15 houses a month and our best deals come from the prospects who we have talked to 15-30 times.  I have always been a fan of direct mail and it is the primary way we generate our business. Good luck! 

 Hi Todd, Sounds like you've created a very steady, lucrative business. Can I ask how many partners you have? How did you start out? Who do you buy your lists from? Thanks for your help. I really appreciate it. Best, Laurence

Originally posted by @Josh Ridener :

I'm an investor/flipper in the south bay.  I don't do any marketing anymore but when I did i had some success with direct mail.  Bandit signs are great but they can be a lot of work.  City throwing them away, people taking them, etc.  

However, you can usually hire someone to put bandit signs out for you for pretty cheap.  I recommend Friday afternoons, as the city is closed so they won't take them down until Monday morning.

The best thing i find though, is door knocking.  Find a farm and get to know everyone.  Network, ask questions, be help and you will find deals.

If you'd like to farm in the South Bay, I'll be happy to buy your deals!! :)

Good luck!

 Hey Josh, This is great guidance. Thanks. My husband said he just saw bandit signs affixed twelve feet high - I guess to prevent them from being torn down. I will try some door knocking. Thanks, Laurence

Originally posted by @Shaun Caldwell :

@laurence Listsource.com is a good place to start. Send me a private message and I'll send you some parameters for building your equity list. 

 Hey Shaun.  Can you purchase Agent lists on Listsource.com?  I'd love to get a list of agents in my area and start marketing to them for pocket listings.

Thanks

If you want to hit pre-foreclosures, you want to do that by acquiring a LIST of people in "pre-foreclosure", which generally means they have received a Notice of Default.  To market to a list, you'll use direct mail of course.

Putting out signs or door hangers are inefficient means to reach that prospect group.

All that said, I am not a huge fan of marketing to NOD's unless I can filter out those who do not have equity. It does you no good to get a homeowner who is headed into foreclosure with no equity; you'll just waste time and not be able to do anything for them (as a wholesaler).

P.S. In CA, you might consider ReboGateway for these specialty lists like NOD/Notice of Trustee Sale. (I am not affiliated with them, we just used their data in CA!)

Originally posted by @Dev Horn :

If you want to hit pre-foreclosures, you want to do that by acquiring a LIST of people in "pre-foreclosure", which generally means they have received a Notice of Default.  To market to a list, you'll use direct mail of course.

Putting out signs or door hangers are inefficient means to reach that prospect group.

All that said, I am not a huge fan of marketing to NOD's unless I can filter out those who do not have equity. It does you no good to get a homeowner who is headed into foreclosure with no equity; you'll just waste time and not be able to do anything for them (as a wholesaler).

P.S. In CA, you might consider ReboGateway for these specialty lists like NOD/Notice of Trustee Sale. (I am not affiliated with them, we just used their data in CA!)

 Thanks Dev. That was super helpful! Best, Laurence

Originally posted by @Laurence Walsh-Hodson :
Originally posted by @Todd Toback:

Hi Laurence,

You are in an awesome yet competitive market.  The secret to thriving in a market like that is to pick 2 or 3 marketing channels and keep marketing to the same lists.  Hit them over and over again and you will get noticed.  

Our team wholesales 10-15 houses a month and our best deals come from the prospects who we have talked to 15-30 times.  I have always been a fan of direct mail and it is the primary way we generate our business. Good luck! 

 Hi Todd, Sounds like you've created a very steady, lucrative business. Can I ask how many partners you have? How did you start out? Who do you buy your lists from? Thanks for your help. I really appreciate it. Best, Laurence

 Hi Laurence,  

A mentor once taught me to "Never Partner With Somebody If You Can Hire Somebody Instead".  I don't have any partners, but I pay my team members well with unlimited upside.  I started out mailing and handwriting letters myself.  I suggest that as a last resort. I wish I would have invested in myself sooner with large direct mail campaigns.  I buy my lists from list source. Steady Income is the key.  This means steady mail, steady interviewing, steady hiring, steady eye on the metrics in your business, and steady investment in yourself.  

Originally posted by @Todd Toback :
Originally posted by @Laurence Walsh-Hodson:
Originally posted by @Todd Toback:

Hi Laurence,

You are in an awesome yet competitive market.  The secret to thriving in a market like that is to pick 2 or 3 marketing channels and keep marketing to the same lists.  Hit them over and over again and you will get noticed.  

Our team wholesales 10-15 houses a month and our best deals come from the prospects who we have talked to 15-30 times.  I have always been a fan of direct mail and it is the primary way we generate our business. Good luck! 

 Hi Todd, Sounds like you've created a very steady, lucrative business. Can I ask how many partners you have? How did you start out? Who do you buy your lists from? Thanks for your help. I really appreciate it. Best, Laurence

 Hi Laurence,  

A mentor once taught me to "Never Partner With Somebody If You Can Hire Somebody Instead".  I don't have any partners, but I pay my team members well with unlimited upside.  I started out mailing and handwriting letters myself.  I suggest that as a last resort. I wish I would have invested in myself sooner with large direct mail campaigns.  I buy my lists from list source. Steady Income is the key.  This means steady mail, steady interviewing, steady hiring, steady eye on the metrics in your business, and steady investment in yourself.  

 Got it Todd. Again, thanks so much. Will do!

Originally posted by @Shaun Caldwell :

@Laurence Walsh-Hodson, direct mail without hesitation. It allows you to control what opportunities come to you. Based on my list and marketing message, I know a person who contacts me has equity which means I can make a deal happen provided we can agree on a price. Two, because I've told them how I buy i.e. quick, for cash, no commissions, no closing costs, etc. they have an understanding of my program. Don't get me wrong, I know investors who use bandit signs with success. For me the risk of being fined (illegal in my market) and the quality of leads that it generates just is not worth it to me. 

 Hey Shaun, Your methods are so smart. One question...doesn't escrow have closing costs? Even if you don't have an agent taking a commission, aren't there still processing fees? Also, you do inspections, yes? Best, Laurence