All Forum Posts by: Dev Horn

There are 3 characteristics of a good motivated seller lead:
1) TIME - they are in a hurry for some reason
2) CONDITION - their house has a ton of "deferred maintenance" so it's not retail-ready.
3) CASH - they need money

Absentees work because there are tired landlords and inherited properties in that list.  It's the best list regardless of how many others you might think are mailing to it.

The other things that work for larger investors are:
- Google AdWords
- Signage (billboards, electronic billboards, bandit signs)
- Broadcast (TV, radio)

You can create an AdWords account, put out signs, make YouTube videos, do Facebook posts, create a Trulia blog, etc. etc. 

You don't want a NICHE - you want DEALS - i.e., motivated sellers willing to sell at a discount.  Those are people that meet 1, 2, or 3 of those criteria above.  THAT is your niche, if you're a looking to flip houses for a profit.

Hi Karlyn!  We offer a 3-video WHOLESALE ACCELERATOR course free of charge to my colleagues here on BP - so, send me a colleague request here in BiggerPockets (include your EMAIL address) and I'll be happy to send you that course, which includes the PURCHASE AGREEMENT and ASSIGNMENT AGREEMENT (in Word docs) that you'll need for wholesaling. (You can see video #1 here).

This will help you understand the process.  I talk about marketing strategy in my Profile video here in BiggerPockets, so click on my face in the upper left corner of this post and watch "The Search for Motivated Sellers".

Hi Jacoby - and welcome to the world of wholesaling.  I highly recommend the Book on Flipping Houses by J Scott who is a big contributor to BiggerPockets and a true real estate pro.  Get it here:

http://get.biggerpockets.com/flippingbook/

We offer a 3-video WHOLESALE ACCELERATOR course free of charge to my colleagues here on BP - so, send me a colleague request here in BiggerPockets (include your EMAIL address) and I'll be happy to send you that course, which includes the PURCHASE AGREEMENT and ASSIGNMENT AGREEMENT that you'll need for wholesaling. (You can see video #1 here).

As far as the marketing goes...

Bandit signs can work.  We like direct mail, Google AdWords, and billboards.  Some of our guys use bandit signs - they work and they are the lowest cost marketing option you have.  Personally, I don't like them in my area - to be honest - and they violate our city ordinance for signage.  So, be aware of that - once you put those signs out:

1) People will take them - often other investors or neighbors that don't want plastic signs in their area, and

2) Code enforcement could fine you.  Usually, they give you a warning to get them down and if you don't that can fine you for every sign.  So understand the rules in your area before you do so you don't get an unhappy surprise.

"The wise make more opportunities than they find." ~ Francis Bacon

Hey Sarah - good luck on your new profession!

I have a video here in BP in my profile called "The Search for the Motivated Seller" that I think you might benefit from watching. I talk about ways we generate leads, how much leads can cost (double those #'s for LA), and why you want to develop a consultative approach - offering your solutions (buying, listing, etc.) as a range of opportunities to solve the seller's problem. When you can make money several different ways in real estate, it enables you to be consultative and to be seen as on the seller's side, trying to help them solve their problem, rather than being in an adversarial relationship of just offering them a steeply discounted price for their house. If the house is nice and the seller is not in a big hurry, is a 60% ARV cash offer the right solution for that seller? You might offer that as a "guaranteed sale" price and tell them you can list the house and probably get them a LOT more, tell them about the avg DOM, etc. so they understand the trade-offs, etc.

I advertise for motivated sellers, but I get those listing leads all the time via this marketing.  You are in an EXCELLENT position when you can either buy or list them, and an even better position when you are able to do other types of deals (Subject To's, Lease Options, Rental with your property mgmt, etc. etc.)

Click on my face in the upper left of this post and watch my profile video...

When you find anyone that says they are a wholesaler, ask them to put you on their CASH BUYER LIST so you get emails whenever they find properties.  As you seek to get more and more of them to put YOU on their distribution list, you will begin to see who is actually sending you emails with wholesale deals.  You'll find, it's only about 10% of the people that TELL you they are wholesalers.  Perhaps they are.  But wholesalers who don't do marketing and don't find deals are just wishful thinkers.  You want the 10% - assuming you are looking for REAL ESTATE.

If your boss wants to sell some other information or service to anyone who fancies themselves to be a wholesaler, then I agree you can go to the REIA meetings, etc. But most people at the REIA meetings around here have never bought a house. It is a good group to buy training and other services.

I haven't but if the price is right, I like the idea.  Seems like grocery cart advertising would be as effective as bandit signs but not nearly as "offensive" (to the public and code enforcement, etc.).

I hope someone else comes in here who has tried it as I really think it could be cost effective and produce some great leads....

1) I don't do them but I believe in the second half of the double close, that's between you and your buyer and no RE agent or commission is involved. I don't care for double closings. You can just assign your contract to the ultimate buyer and the title company can pay your fee on the HUD-1 at closing.

2) If you're making an offer for a listed property, you will make it with the state contract and will be expected to provide some earnest money.  Are you using a RE agent on your side or are you making your offer directly to the listing agent/broker?

3) I don't call it "advertising", but I have cash buyers that I trust and I routinely discuss deals with them (not all but the ones I am close to) to get an idea of what they will pay.  Do that all the time.  I almost always have the cash buyer ready to rock and roll.

P.S. Send me a colleague request with your email address and I'll send you my 3-video "Wholesale Accelerator" course for free.  It will answer a BUNCH of your questions!  =)

In New Jersey, you're probably going to find that leads from AdWords (i.e., FORMS completed and lead received) will cost you maybe $150 each after all the impressions & clicks.

If I want 10 leads per month to work, with the expectation of landing 1 in 10, and my avg cost per lead is $150, then I need an AdWords budget of $1,500 per month.  And that's a pretty good budget.  That's a $50 per day budget.

At that level, you can afford the CLICKS that get you to the leads.  The cost per click on the keyword "sell my house fast" might be $10, maybe $15.  And you see once people click on the ad and come over to your landing page, maybe only 10 or 20% of those guys will fill out the form.  Leads / Budget = your Cost per Lead, and I think you can assume that's $150 for now.  Build your account, fund it, and it will optimize itself and you'll be tweaking the ads and keywords, and in a month or two you'll have a good idea of your cost per lead and if your budget is driving enough opportunity for you.

"If we fail to adapt, we fail to move forward." ~ John Wooden

Richard C. is right, but I think people often believe that what wholesalers and agents are doing is essentially the same thing.  In theory, perhaps it is.  In practice, they are quite different.

There is a huge part of the real estate business that exists outside of the MLS and the FHA. Distressed properties need a cash buyer who can invest the funds to make the repairs and return the property to retail condition. Those cash buyers do NOT buy via real estate agents, because real estate brokers don't have the distressed properties for sale in the MLS, because these properties are being found, "brokered", purchased, and rehabbed completely outside of the world the RE agents/brokers live in.

And perhaps my biggest point is this: The big players that are licensing our WeBuyHouses.com brand are almost all broker/agents AND investors, and those guys wholesale deals to cash buyers. They have their license - why aren't they just listing their distressed properties on the MLS and selling them the cash buyers there? Because that is NOT where these deals happen.

So - all that said - if your cash buyer goes around you and pushes you out of the deal, you'll never bring him another opportunity.  Over time, you'll get a good group of buyers that you can trust.   In the end, this business is all about relationships.

"Our own success, to be real, must contribute to the success of others." ~ Eleanor Roosevelt

$110,000 offered and