flipping houses - step 3 when starting your wholesaling business
Build Your Buyers List First... Before You Start Looking For Deals
I'll be honest. This is not how I learned this business. When I got into flipping houses, the old saying was, "Get the deal and if it's good, it'll sell."
Fast forward seven years... and that saying just doesn't work much anymore.
Why? Because when that saying was invented it was a seller's market. It ain't anymore...
There are some signs, however, that are pointing to a shift back. But, for now, and maybe forever, I'd go ahead and start my business by finding the dudes with cash first, before ever looking for a deal to flip.
It's just smart business.
When the market was booming, every bank in business was lending, heavily, to anyone with a pulse. It was no money down, and it didn't matter if the house was brand new... or riddled with termites and barely holding the walls up.
If it had four walls and a door, and you wanted it, you could get it. It could even be on wheels...
Today, it's an entirely different ballgame. For one, banks don't lend to investors anymore. And, when that ended, it shrunk our list of buyers from just about everybody... to only those with cash, or access to cash.
To give you an idea, that took most wholesalers' buyers list from several hundred... down to zero.
So, what do you do? You seek out the buyers... the guys with cash... first. How do you do it? Here are some ways: the first two are the best.
1. Use the best direct mail company out there - YellowLetterMail.com - to mail to absentee owners. Tell Michael what you want to do and ask him to assist you in narrowing your list in order to maximize your marketing dollar. Michael is an investor, as well, and also a frequent poster on this site.
2. You can put out 50 yellow bandit signs advertising a fake house for sale. Make sure it's a deal so good, they can't pass it up. And use an untraceable number from a site like patlive.com so you don't find yourself paying a hefty fine.
3. You can contact section 8 landlords through the site gosection8.com.
4. You can visit a local REIA meeting and inquire as to who the rehabbers and landlords are.
And anything else you can think of.
If you wait till you have a house under contract to go look for a buyer, you're in a beat-the-clock situation. But, if you have buyers before, and you know exactly what they look for in a deal, the closing should be a foregone conclusion.
And that's a great place to be when flipping houses.
Andrew "The Maestro" Massaro
Founder and Coach of the most personal, direct,
hands-on and 1-on-1 wholesale and REO coaching
program on the planet!
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