Wholesale Start Up Help

14 Replies

My wife and I have started a wholesaling business that will grow into buy and hold as well as fix and flip. To start out, we have blasted craigslist with potential properties needing rehabbing, but we can't seem to get many buyers. I know craigslist isn't the best, but are there better options? I want a list of buyers about 15-20 deep that I can reach out to and get rid of these properties fast.

Hey @Alexander Forrester  Auctions are by far my favorite way of finding high quality cash buyers. There are two types of auctions that you want to attend. First, are on-site house auctions. Heres how is works. Sellers often hire a auction company, which advertises the property for sale and typically hosts maybe one open house to show off the home. Then the property goes up for sale on auction day. On auction day investors gather at the house, walk through it one more time and then the house is auctioned off to the highest bidder. Now the terms at these auctions are usually $5,000 Deposit in Cash or Certified Funds due the day of auction; balance to 10% due within 5 business days, and Close in 30 days. Everything sold “As Is, Where Is.” No warranty or guarantee is expressed or implied. All sales are final. The reason I want to go over these terms with you is because they give us insight into who the buyers are. One thing we know is that they are cash buyers because that need to have a 5k deposit, the balance or 10% within 5 business days and be able to close within 30 days. In addition to them having money they purchase property “AS IS”. This means that they have the resources and means to complete the repairs and they are experienced enough to determine rehab cost without hundreds other people being involved. The less people you need to take to your wholesale deals the better. This is your ideal buyer. The second type of auctions I want you to attend are building material auctions. These auctions sell everything you can think of related to houses. Doors, hardwood floors, titles, tools, windows, appliances, kitchen cabinets, counter tops, and much more. These auctions are filled with landlords and rehabbers. They are there purchasing materials at wholesale prices so why won’t they want to buy houses at wholesale prices. Hope this helps.

15-20 deep? Our buyer's list is over 1500 and growing. You can't rely on Craigslist at all if you're looking to sell properties, your gonna need to build your buyers list. Wholesaling has nothing to do with real estate and everything to do with sales and marketing at both ends (sellers/buyers).

@David Bokman as much as I’d love to have a buyers list of 1500, with this being a start up for me I think 15-20 is a good start. If you want to be constructive you could point me into a direction as to how to get up to 1500, that sort of comment would be beneficial to me as opposed to what you originally commented.

@Alexander Forrester Well I respectfully disagree. I was also a startup 3 years ago and there was NO DOUBT in my mind that you need to have a solid/strong/deep buyers list.   You obviously didn't read my comment, wholesaling has everything to do with marketing....so how do you grow a buyers list....well let's start with MARKETING and Networking.  You should be able to grow your buyer's list by 15-20 a week if you do it right. 

Point you in the right direction you say: Ok how about going to local REI meetups in your area? How about creating a link so people can sign up to your buyer's list and you market that link on Facebook, Bigger pockets, etc etc etc.....Don't you think you'll be able to get more than 15-20?

Last year 2018 we closed 50 wholesale deals, out of that 50 half of them came from other wholesalers that couldn't sell there own deals.....wanna know why??? I'll tell you...... their buyer's list is small!!!!!!! 

Expand your mindset 

@David Bokman Hey that's what I'm talking about! Thank you! So as of right now I have been just posting feelers on Craigslist to get buyers to respond. It hasn't been the response amount that I have been looking for. REI groups are definitely where I will head to. Also, did you outsource the Facebook generation or did you do that yourself?

@Alexander Forrester We have multiple websites, one for sellers and one for buyers. Each has there own facebook page as well. In the beginning, I was doing it myself but as I've grown I now have a company that manages our ads for us.  But FB makes it pretty easy to target specific groups of people example (Your city/town and "real estate investors, agents etc etc). So many different ways of marketing your buyer's list. 

@Alexander Forrester - @Jose Flores had an excellent idea.  Good stuff there.

I am a huge proponent of local meetup groups.  People like working with people they know.  So, research your local area (or the closest metro to you).  Find the groups that are there, and attend EVERY time.  Be active, and talk to people at the meetings.  By consistently attending and bringing deals, you will create a very tight and strong buyer network.  Good luck!

@Alexander Forrester I agree with the suggestions that all the other people have made. But I think you are starting in the wrong place. Personally I think its a mistake to start trying to find buyers before you are finding sellers. Ive seen lots of new wholesalers who spend way too much time looking for buyers and not enough time looking for sellers. Finding and negotiating good deals is the hardest part of this business. Once you have a deal its much easier to accumulate buyers then to be reaching out as a newbie asking to put people on your buyers list. Also until you have started doing deals you wont be able to identify the people on that buyers list who are tire kickers and time wasters. Most new wholesalers are terrified if the idea that they will have a property under contact and not be able to sell it. The truth is the only deals you wont be able to sell are the ones that arent really deals.

Thats just my 2 cents

@Lydia T. Thank you for sharing! I definitely understand where you’re coming from! I just wanted to have a solid foundation that I can shoot them out to once I start getting them. I understand that getting deals will be the tough part but also just want to knock the easy stuff out now. Where did you start?

@Alexander Forrester Just wanted to give you a different perspective. I see a lot of new wholesalers get hung up on creating a buyers list and I try to help them course correct. Yes a buyers list is the easy part, but its even easier to build with a deal. For example, you get a property under contract in a specific neighborhood/subdivision. Then you look at all the properties that have been bought or sold in that neighborhood and contact the LLCs that bought or sold those properties. If there is an individual who owns more than one property in that neighborhood contact them. If there is an LLC that owns a property in that neighborhood then contact them. All those people can be on your buyers list, and when you call saying you have a deal on a property in a neighborhood you know they invest in they will take you a lot more seriously.

I started with driving for dollars. I made every mistake there is to make with my first deal. But thats how I learned. Get out there and get those hands dirty! Good luck!

@David Bokman HES A MAD MAN 😂 BUT HONEST! David maybe I can learn a thing or 2 from you. Seems like you know how to get the job done pal!

my local MSA has a real estate investor facebook group so i hopped on there and asked who'd want to be on the buyers list. also used the search bar for the group and searched "cash buyers" and found a bunch of posts where other people did the same thing. so i copied those names and emails as well as any specific criteria they were looking for. i got a little over 40 names and emails just doing that for probably 20 min worth of work.