Hello everyone. I'm writing this post to challenge those of you who would like to get started in wholesaling but have yet to take action. I'd like to start by saying that I am by no means an expert in wholesaling. This post is based entirely on advice that I've received from other wholesalers as well as experts here on Bigger Pockets, and I welcome any correction or additional advice. I've decided to challenge to myself to take action and am sharing this in hopes that others will be inspired to do the same. Here are the two challenges that I would like to present:
CHALLENGE #1:
For those who have no money but want to gain some experience, or those who are as of yet unsure about investing their money.
Dedicate a time to do these activities daily if possible.
1. Start getting to know what properties investors are buying in your target area and what their criteria is.
You can find investors in your area through local REIA meetings, Craigslist ads, bandit signs posted in your target area, a city search here on BP or any other way you can think of. Give them a brief call, let them know who you are and ask them if they're buying in your area and what their criteria is. What type of property are they looking for? Are they flipping or are they buy and holds? Price range? 3bed/2bath? Etc.
2. Get to know your market area. (You can do this as you're contacting investors to find out what you should be looking for.)
Get a map of your target area and start driving for dollars:
a)Note the types of neighborhoods you're in (rental areas, mostly home owners, "bad" or "good" or up and coming neighborhood, what's nearby?)
b)Look for vacant or run down houses.
c)Look for FSBOs.
d)Take note of bandits signs and write down the numbers.
e)Note rental signs, rental rates, and some people like to take down landlords numbers to see if they are potential buyers.
f)Note for sale signs.
g)Go to as many open houses as you can.
Study MLS data:
a)New listings
b)Sold data (Also how long was it on the market?)
c)If you can and desire to, get rental data as well.
3. Start marketing yourself.
Business cards are pretty cheap so you could leave a card, or if not a card, a handwritten note in mailboxes, with neighbors or in select places. Also give them out to everyone you meet. Call FSBO's and see if they're willing to sell for cash. Find out who owns those beat down houses and send a letter.
***
CHALLENGE #2: START A MARKETING CAMPAIGN
For those who have a little money and are ready to dive in.
(This challenge assumes that you know how to compose a letter, keep track of your campaign activity, know when you have a deal, know pretty much what to say when the calls come in, have money available for expenses and so on.)
The challenge is pretty simple: Commit to sending out a minimum number of letters each day for at least 3 months.
Based on information I've gathered from other wholesalers 1000 letters per month seems to be a good number. At the date this post was written stamps are 0.46 per letter and 0.33 per postcard. This would amount to $460/mo. or $330/mo. depending on whether you're sending out letters or postcards. You could send out more or less, keeping in mind that the more correspondence you send, the more responses you'll get.
Side Note: I've been seeing quite a few complaints from investors that wholesalers present comps and repair values that are innacurate, so if you would like to earn the trust of investors in your area, please find out how to presents accurate repairs estimates and comps!
***
The challenge begins when you read this post and calls for a three month commitment to daily action. If you end up with a success story please post it in the success story forum and link to it here in the comments. If you don't make a deal but you gain some invaluable knowledge please post it here as well. Thanks for reading!
Here is the link to the discussion that inspired this post:
https://www.biggerpockets.com/forums/48/topics/93143-what-would-you-do-with-10k
Thanks to Dev Horn and K. Marie Poe and everyone else who responded to that thread with wonderful advice and ideas.
