Fairly New Wholesaler, Struggling to Find Deals

12 Replies

Hi! This is my first BP post but I’ve been looking through the website for some time. I started getting into Real Estate as a wholesaler after meeting my mentor at my day job. I’m located in North DFW and I’m struggling on finding ways to generate solid leads in my area. I’ve talked to a couple realtors and made a couple of connections through Craigslist but I am still struggling to find connections that I can generate consistent actable leads with. Any tips or tricks would definitely be helpful!

Have you tried direct mail? 

I went on the county clerk's website and have 5 addresses so far of foreclosed properties that I'm going to look into. So possibly you can do the same. If your county doesn't have a website, you can go to their office. It's all public information.

I too am a just starting out wholesaler, but have not done any deals. If you weren't so far north, I'd be willing to find you properties in exchange for learning and a finder's fee.

Dallas is a large city. I’d recommend you start looking in 1-2 areas. Befriend a few Realtors. See if you can get a list of non-owner occupied homes based on zip codes. Then pick 3/2s and larger and send them postcards. Drive the neighborhoods looking for homes in rough shape. You will find some. Partner with experienced wholesalers on a few deals, learn the trade. Don’t give up.

@Cole James

I'm reading Finding and Funding Great Deals by Anson Young. He goes over this topic in detail. If you don't have much money starting out, you will have to leverage more of your time by driving for dollars, door knocking, and cold calling. If you have some money you can buy lists and do direct mail.

@Cole James To find any type of consistent lead stream, you need to be marketing, which means you need to be spending money. On average it should cost $3000-5000 in marketing per deal in the DFW area. Maybe a little less if you focus further north of where you live.

Originally posted by @Andrew Herrig :

@Cole James To find any type of consistent lead stream, you need to be marketing, which means you need to be spending money. On average it should cost $3000-5000 in marketing per deal in the DFW area. Maybe a little less if you focus further north of where you live.

 I've heard others say that too. That's an incredible amount of money for a single deal. As an example, that would be $100 per day in Facebook ads for a month.

It sounds like you're looking for connections in the wrong places. Realtors and Craigslist aren't going to help you. You need to be connecting with motivated sellers. As mentioned above this takes lots of time and/or money. 

@Cole James

You're not going to be able to wholesale deals from the MLS unless you win a lottery ticket. There's no margin in that and you'll end up annoying the true buyers in your area if you present a non-deal to them. You need to look off market if you're going to wholesale.

@Cody Evans

You can check the marketplace for direct mail costs as lots of companies provide them. I would estimate around 12 cents per lead, around 50cents per letter if you just want to ballpark something. Do keep in mind a campaign for 1 address should run at least 6 mailings.

If you have money I would put it into direct mail. if you do not have the funds I would either work with FSBO or connect with a few wholesalers in town and cut a deal to wholesale their inventory. this way you always have consistent flow of leads coming in and only thing you have to worry about is developing your buyers. this is how I built me wholesale business for the first 3 years.

Peter Vekselman

PM if you need more help.

Connections will not bring you leads.....only marketing will do that.  Are you doing any kind of marketing at all? How are you reaching out to motivated sellers? Do you have a website? Business Cards? Are you mailing out letters? Wholesaling has nothing to do with real estate and everything to do with sales and marketing. 

David is 100% right, don't focus too much on connections. Start cold calling, door knocking and sending hand written letters to distressed property owners.

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