As a real estate wholesaler, it’s important to be able to quickly locate an end buyer for your deals once you put them under contract. While there are many different ways to go about doing this (some of which I have mentioned in this article, as well as this one), my favorite method for finding buyers requires zero cash, can be accomplished without ever getting up from your office chair, and can be broken down into three simple steps:
How to Purchase Real Estate With No (or Low) Money!
One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
Once you get a property under contract, do a search on your property appraiser’s website (or whichever website you use to run comps), for all sales in the same neighborhood over the last 90 days. Once you have obtained the results of said search, you want to look for “investor comps”, which will be the lowest sales in the neighborhood.
Following is a snapshot of a search I recently conducted on the property appraiser’s website in my county, while trying to sell a deal I had under contract:
Once I have determined which comps are most likely investor comps (in this case, the top 3), I move on to step #2.
Head over to Google and do a search for the the owners of the investment properties that you have just identified in step #1 (this works particularly well when the owner name is a corporation or an LLC).
You may have to do a little digging until you find what you are looking for (a phone number), and sometimes you will find nothing at all. If you do end up finding the owner’s phone number, proceed to step #3.
Call the owner up and ask if they are looking for more investment properties in the neighborhood where your deal is located. When I use this approach, I usually say something like this:
“Hi there, my name is Steph Davis and I’m a wholesaler here in Tampa. I noticed that you own a property at 123 Main St and was just wondering if you were looking for more investments in that neighborhood….”
Depending on the initial response I get from the person on the other end of the call, I will either go on to tell them about my deal, or politely thank them for their time and move on to the next.
If you are intimidated by making cold calls to strangers, another option would be to track down the owner’s home address and send them a letter or postcard about your deal. If you decide to go that route, however, just keep in mind that it is not nearly as effective as picking up the phone and making the call.
Using this strategy to find buyers for your wholesale deals is one of the quickest, easiest, and cheapest (it’s FREE!), ways to get the job done. Give it a shot next time you have a deal under contract, and let me know how it works out!