We all have a favorite lead type that when it comes to wholesaling!
What lead type that you love the most?
What is your Favorite Lead Type? That you love to work with! and usually the most profitable for you?
You need to find uneducated sellers that are easy to take advantage of.
Hi @Marc Frage ,
The type of seller that we can help is someone who is motivated to sell their house fast, and who doesn't want to - or can't - go the typical route of perhaps fixing up their house, listing it with an agent, etc. They legitimately are in a situation where they want to trade time and convenience for money. High equity is very helpful because that's where they make the trade-off.
Everyone says to look for absentee owners, preferably out of state, and that's not bad, but a lot of people look there.
People who are truly motivated generally have distressed properties, or are in a distressed situation. They are starting to go under, and there are signs of this. You may find them in pre-foreclosure. They may be behind years on their property taxes. They may have violations against their property for failing to maintain it. And they may simply be letting their house fall into a state of disrepair as they worry and maybe even just fail to act.
These people aren't stupid or ignorant, they are facing situations where they may not know what to do, they can't do them, or they simply don't want to do them. They really do want to trade money (equity) to solve their problems.
You can find a lot of these on the appropriate lists. Tax delinquencies, code violations, pre-foreclosure, etc. (Someone will certainly post a comprehensive list better than I can - @Lydia T. or @Greg Dickerson are my favorites for this information!) I also believe in D4D, looking for distressed properties, and then talking to those owners. Find out if they really are motivated and how you can help them.
@Marc Frage Thanks for the shout out @Barry Pekin ! What @Barry Pekin said is spot on. You are looking for people who have to sell not people who want to sell. Wholesalers tend to gravitate towards FSBOs, preforeclosures and MLS properties. All of those are people who are unmotivated to sell at a discount. Personally I like vacant houses. Thats become my niche. It removes a lot of the hassles that come an occupied house. Tenant occupied? Pain in the butt unless tenant is going to vacate prior to closing. Owner occupied? Well now you have to solve their problem of where to go when they leave their home. Ive had sellers who couldnt afford to go somewhere else. As a wholesaler, if you want that deal you have to help find the solution to that problem. Vacant houses have none of that drama. There is no one to relocate, no emotional attachment, its costing the homeowner money as it sits there vacant and deteriorating so its an easy argument to make for selling. Also vacant houses tend to be harder to find. So they arent on a list and so Im usually the only investor the owner talks to. 👍🏽👍🏽👍🏽
@Marc Frage Everybody has given some solid advice. I would also add pursuing individual and mom and pop landlords currently going through the eviction process to the mix. Whatever you decide on good luck with your endeavors.