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Why I gave up Bandit Signs....Today.

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Efrain Diaz
from Norwalk, CA

posted about 1 year ago

As a developing/newbie wholesaler you learn that you should follow basic steps to get in the game: put up bandit signs, door knock, drive for dollars, etc. So that's exactly what I've done.

I started with Bandit Signs. Experimented with different colors, font, messaging, and even language. Hundreds and hundreds of bandit signs later, I've given up on this as a viable, scalable strategy. Yes, I've had a few calls from signs: found a couple buyers, a potential lead that went nowhere, and callers who just needed someone to talk to (those were my favorite). I can even say that I enjoyed the rush of being an "outlaw" while putting up my signs.

I knew the day would come. The dreaded phone call....and it did. The city called and wanted to speak to me about my outlaw activities. That was probably the final nail in the coffin for me when it comes to being a bandit with these signs. The truth is I had already come to the conclusion that bandit signs are not worth the money, time, and effort they require and are not a sustainable, scalable business practice. Bandit signs, you will NOT be missed.

How has your Bandit Sign journey worked out?

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Doug Pretorius
Specialist from Kitchener-Waterloo, Ontario

replied about 1 year ago

@Efrain Diaz My bandit sign journey: I put out 100 or so signs, got a few calls, got a deal, wholesaled it for $40k profit and then got the call. I was OK with that though because I didn't really care for the outlaw feel.

I continued to use signs for selling locally but those never got "the call". Eventually I stopped that as well because I ended up with more tenants and buyers from my websites than I have houses.

Fun times though. Sorry to hear you didn't get a deal for all of your efforts!

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Efrain Diaz
from Norwalk, CA

replied about 1 year ago

@Doug Pretorius Sounds like you hit the first step in scaling with your bandit sign campaign: Put signs up, get a deal, and scale....so you don't have to put signs up anymore. Did you use part of the 40k to reinvest in marketing? If so, what type?

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Will Barnard (Moderator) -
Developer from Santa Clarita, CA

replied about 1 year ago

Well, that’s one more down, another hundred thousand to go in the LA area. I see these signs everywhere and it is against the law yet people continue to do it. Your number is right on the sign, I don’t know why more people don’t get busted for this, I guess the municipalities simply do not have the man power to go after them all.

Happy to hear you decided to take a better and legal approach to marketing for sellers.

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Doug Pretorius
Specialist from Kitchener-Waterloo, Ontario

replied about 1 year ago
Originally posted by @Efrain Diaz :

@Doug Pretorius Sounds like you hit the first step in scaling with your bandit sign campaign: Put signs up, get a deal, and scale....so you don't have to put signs up anymore. Did you use part of the 40k to reinvest in marketing? If so, what type?

No, my deals all come from FSBO and MLS now. Tenants and buyers all come from online marketing.

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Efrain Diaz
from Norwalk, CA

replied about 1 year ago
Originally posted by @Will Barnard :

Well, that’s one more down, another hundred thousand to go in the LA area. I see these signs everywhere and it is against the law yet people continue to do it. Your number is right on the sign, I don’t know why more people don’t get busted for this, I guess the municipalities simply do not have the man power to go after them all.

Happy to hear you decided to take a better and legal approach to marketing for sellers.


It feels like if you are new to wholesaling it's almost expected that you start with bandit signs. It's almost like a rite of passage. When you are first gathering info on wholesaling, you are almost pushed in that direction. And you are right.....thousands of signs out there. So if you are new you probably think, "So many people are doing it. Must be working." And maybe it works for some. But I want to scale my business....and bandit signs ain't it!

 

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Dennis M.
Rental Property Investor from Erie, pa

replied about 1 year ago

Love bandits . I get calls all the time and they are usually motivated too . How do you know if they are motivated ? If they are calling you not you calling them . I’m Closing on a house tomorrow thanks to bandits I put out two weeks ago . They work best in lower income areas folks and you can’t put out 5 and give up ! 

I love that it scares most people and seems archaic for today’s millennial investors who want to use software and online resources . Works great for me lol only a crazy or desperate person calls handwritten signs on the side of street so in essence they pre- screen  themselves lol 

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Dennis M.
Rental Property Investor from Erie, pa

replied about 1 year ago

Your not supposed to use your own phone number on these ! You use a google voice number . If the code guys call tell them to pound salt , it’s not traceable if you set this up correctly 

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Mary M.
Rental Property Investor from Portland OR

replied about 1 year ago

I would imagine that anyone looking to “find” the bandit sign owner would only need to call, set up an appointment and bingo! They know who you are. ;)

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Will Barnard (Moderator) -
Developer from Santa Clarita, CA

replied about 1 year ago
Originally posted by @Dennis M. :

Your not supposed to use your own phone number on these ! You use a google voice number . If the code guys call tell them to pound salt , it’s not traceable if you set this up correctly 

I see, never mind that it is illegal, as long as you don’t get caught and use some google voice number, it must be ok.

Really!!! I think you bandit sign people should pound sand. 

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Dennis M.
Rental Property Investor from Erie, pa

replied about 1 year ago
Originally posted by @Will Barnard :
Originally posted by @Dennis M.:

Your not supposed to use your own phone number on these ! You use a google voice number . If the code guys call tell them to pound salt , it’s not traceable if you set this up correctly 

I see, never mind that it is illegal, as long as you don’t get caught and use some google voice number, it must be ok.

Really!!! I think you bandit sign people should pound sand. 

Real estate signs are legal and I improve the area by fixing up these houses getting the place back on the tax roll and helping a working family get affordable housing . If that’s wrong I’m ok with that ! Sorry your life is that sad you’d worry about Me putting a sign on a telephone pole lol 

 

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Serena Bales
Realtor from Kansas City

replied about 1 year ago

I say skip the bandit and go straight for the big burrito!


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Efrain Diaz
from Norwalk, CA

replied about 1 year ago
Originally posted by @Dennis M. :

Your not supposed to use your own phone number on these ! You use a google voice number . If the code guys call tell them to pound salt , it’s not traceable if you set this up correctly 

 I didn't use my own phone number. I have several numbers through Call Rail. The code people called and left a voicemail.

I honestly got very little traction with hundreds of bandit signs over a five month span. I had volume and was consistent.....just no results. 

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Efrain Diaz
from Norwalk, CA

replied about 1 year ago
Originally posted by @Mary M. :

I would imagine that anyone looking to “find” the bandit sign owner would only need to call, set up an appointment and bingo! They know who you are. ;)

Exactly! So even if I got a call that sounds legit from my old signs, I would hesitate to set an  appointment. I'm obviously on their radar.

 

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Efrain Diaz
from Norwalk, CA

replied about 1 year ago

@Serena Bales I've seriously considered paying for a small billboard! Wonder how much they cost? Probably same as spending hundreds monthly on bandit signs.

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Will Barnard (Moderator) -
Developer from Santa Clarita, CA

replied about 1 year ago
Originally posted by @Dennis M. :
Originally posted by @Will Barnard:
Originally posted by @Dennis M.:

Your not supposed to use your own phone number on these ! You use a google voice number . If the code guys call tell them to pound salt , it’s not traceable if you set this up correctly 

I see, never mind that it is illegal, as long as you don’t get caught and use some google voice number, it must be ok.

Really!!! I think you bandit sign people should pound sand. 

Real estate signs are legal and I improve the area by fixing up these houses getting the place back on the tax roll and helping a working family get affordable housing . If that’s wrong I’m ok with that ! Sorry your life is that sad you’d worry about Me putting a sign on a telephone pole lol  

 Are they? I just looked it up and from my research, bandit signs are illegal in PA as they are in most municipalities across the US. Improving the area by fixing up homes and giving a supply of nice homes for families is certainly a good thing, I do the same on an even larger scale, but that is not the issue or topic here, bandit signs and their legality and effectiveness are the topic. As to my sad life, well everybody but you knows that is just not true. Good luck to you.

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Dennis M.
Rental Property Investor from Erie, pa

replied about 1 year ago
Originally posted by @Will Barnard :
Originally posted by @Dennis M.:
Originally posted by @Will Barnard:
Originally posted by @Dennis M.:

Your not supposed to use your own phone number on these ! You use a google voice number . If the code guys call tell them to pound salt , it’s not traceable if you set this up correctly 

I see, never mind that it is illegal, as long as you don’t get caught and use some google voice number, it must be ok.

Really!!! I think you bandit sign people should pound sand. 

Real estate signs are legal and I improve the area by fixing up these houses getting the place back on the tax roll and helping a working family get affordable housing . If that’s wrong I’m ok with that ! Sorry your life is that sad you’d worry about Me putting a sign on a telephone pole lol  

 Are they? I just looked it up and from my research, bandit signs are illegal in PA as they are in most municipalities across the US. Improving the area by fixing up homes and giving a supply of nice homes for families is certainly a good thing, I do the same on an even larger scale, but that is not the issue or topic here, bandit signs and their legality and effectiveness are the topic. As to my sad life, well everybody but you knows that is just not true. Good luck to you.


every city has its own ordinance on signs and advertising my friend . If they were illegal realtors couldn’t put out any  to sell houses lol  obviously there’s right and wrong ways to go about that 

 

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Storm S.
Real Estate Agent from Santa Barbara, CA

replied about 1 year ago

To all the California wholesalers on this forum, wholesaling is explicitly against the law in California if you do more than 8 a year without an active real estate license.

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Serena Bales
Realtor from Kansas City

replied about 1 year ago

@Efrian Diaz I don't know what it would cost in the area but for us we purchased the lot with this billboard on the property and it has paid off. The sign itself would cost on average $2500-3000 in our area. We get one hot lead a week. It's a long game not a short game like most people think bandit signs are.

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Will Barnard (Moderator) -
Developer from Santa Clarita, CA

replied about 1 year ago
Originally posted by @Dennis M. :
Originally posted by @Will Barnard:
Originally posted by @Dennis M.:
Originally posted by @Will Barnard:
Originally posted by @Dennis M.:

every city has its own ordinance on signs and advertising my friend . If they were illegal realtors couldn’t put out any  to sell houses lol  obviously there’s right and wrong ways to go about that  

 Really? Are you really attempting to form an argument for your side using realtor signs in private property yards where the realtor has written permission to place said signage vs bandit signs on public street poles where it is explicitly illegal in just about every municipality I know of?
Nice try.

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Will Barnard (Moderator) -
Developer from Santa Clarita, CA

replied about 1 year ago
Originally posted by @Storm S. :

To all the California wholesalers on this forum, wholesaling is explicitly against the law in California if you do more than 8 a year without an active real estate license.

Storm, can you please post verifiable info on your claim here? Never ever heard of that and wholesaling just one (if you lock contract, market property to buyers, locate buyer, contract new buyer, and assign that contract for a fee just once, you have violated licensing laws in CA and have brokered without a license. You can’t do that 1 time, let alone 8 without breaking the law here in CA. I realize people do it all the time but it is not legal.

 

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Storm S.
Real Estate Agent from Santa Barbara, CA

replied about 1 year ago

@Will Barnard I agree with you just doing it once violates licensing laws, but there is explicitly a law that says you can’t do more than 8 a year I’ll post about it later.

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Will Barnard (Moderator) -
Developer from Santa Clarita, CA

replied about 1 year ago
Originally posted by @Storm S. :

@Will Barnard I agree with you just doing it once violates licensing laws, but there is explicitly a law that says you can’t do more than 8 a year I’ll post about it later.

 Great, please do post it but your comment above contradicts yourself. You agreed just doing one violates licensing laws so not sure where the number 8 comes into play when 1 already got you in trouble.

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Dennis M.
Rental Property Investor from Erie, pa

replied about 1 year ago
Originally posted by @Will Barnard :
Originally posted by @Dennis M.:
Originally posted by @Will Barnard:
Originally posted by @Dennis M.:
Originally posted by @Will Barnard:
Originally posted by @Dennis M.:

every city has its own ordinance on signs and advertising my friend . If they were illegal realtors couldn’t put out any  to sell houses lol  obviously there’s right and wrong ways to go about that  

 Really? Are you really attempting to form an argument for your side using realtor signs in private property yards where the realtor has written permission to place said signage vs bandit signs on public street poles where it is explicitly illegal in just about every municipality I know of?
Nice try.


Oh geez I guess you are one of those guys who has to get the last word in every time , look I’m not saying that , you did ! What I’m saying is realtors very often don’t just put real estate signs out in the front yard it’s at street corners and intersections Especially if there’s a showing that day . Maybe that’s uncommon where you live but at any given time the streets and back roads around my area has plenty of signs from RE agencies that are not in the homes front yard . 

 

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John Thedford
Real Estate Broker from Naples, FL

replied about 1 year ago

Unlicensed brokers (violating the law) using bandit signs (violating the law)....looks like a pattern to me:)

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