I remember starting out wholesaling with no money and little to no resources. Because of that, I wrote an article called “8 Killer Resources for Savvy Low Budget Wholesalers” to help newbies find resources that were very affordable. Now since it has been some years, I thought I would expand the list. Whether you are a newbie or a seasoned investor, these tools are very helpful in getting your first deal or expanding lead flow.
Let’s get started.
How to Analyze a Real Estate Deal
Deal analysis is one of the best ways to learn real estate investing and it comes down to fundamental comfort in estimating expenses, rents, and cash flow. This guide will give you the knowledge you need to begin analyzing properties with confidence.
8 New Killer Resources for Savvy Low-Budget Wholesalers
This is one golden nugget that anyone using direct mail to get leads need to utilize. Everyone discusses Listsource.com or Mellisadata.com for purchasing direct mail lists, but ReboGateway is gold. Unlike the others, Rebo has the data presorted into categories, i.e. divorce, pre-foreclosure, high equity, probate, tax default, notice of default leads and others. Instead of trying to market to every single absentee owner as most are told to do, this platform can segment the data.
For example you can mail exclusively to absentee owners who are out of state and behind on their mortgages and taxes. Talk about motivated! Oh, and I almost failed to mention, you can create “farm areas,” and Rebo will send you daily notices of any activity in your farm. So, if someone just filed for a divorce in your farm area, guess what? You’ll be notified.
This will assist in getting a better return on your marketing budget. I must warn you, however, that the response rate maybe lower — but the conversion rate is much better.
Also what distinguishes Rebo from the other list sites is that you do not have to pay for the list immediately — rather, you can set up an annual plan that is the fraction of the cost of paying for one huge list. With Rebo, you can pull leads as many times as you need and still pay the low monthly rate.
Yes I did mention our most famous resource in the prior article, but there have been technological advances made here that were not at my disposal back then. The biggest value add, especially for newbie wholesalers, is the wholesaling calculator. If you are not using this resource, you are missing out on a great educational tool. It would be very beneficial to analyze other wholesalers’ deals so you can become familiar with what an attractive deal looks like.
3. Leveraging Your Counterparts
In this business everyone must understand the concept, “It’s not what you know as much as who you know.” This is very true, and I add this to the list because of the leverage learning component.
Here’s what I mean: Many wholesalers send out a property with the purchase price and the after repair value (ARV) noted. As I stated above, this is a great opportunity to analyze their deals to see with what percentage of ARV they are sending their properties out to the marketplace.
It is highly beneficial to join the email lists of all the major wholesalers in your area. How do you do this? You ask. Just Google “sell my house in [your city]” and join the email list. You will be able to see the majority of the non-MLS (off market) deals in your market. You will not only get a chance to analyze their deals using the BP calculator, but you will be able to see who the major players are.
4. Title Companies’ Marketing Departments
Once again, leverage comes into play. This may be a little intimidating for some, but it’s very easy — schedule a meeting with a title company.
Why, you ask? Title companies have a dedicated marketing department, and they are willing to help provide tools to help their clients. The reason why I say this may be intimidating is because many newbies don’t have a deal to bring the title company so they believe they are wasting the company’s time.
This is so far from the truth. It’s great to market for a deal knowing you have your title company in place to close the transaction for you. This ties into the perception you have of yourself. You have to talk the talk until you can walk the walk. This does not mean boast and lie, but this means have some confidence and swag about yourself. You have to know that the deal will come, and when it does, you’re going to be ready.
Title companies have lists of sellers that are in distress as well. Here’s a quick example: I met with a new title company this week because my old title company called and stated they are no longer doing double closings. I thought to myself, OK, oh well, I’ll find another title company. I reached out to a colleague of mine and explained the situation, and he gave me the contact info. I called and scheduled a meeting with the escrow agent. I also asked if a person on the marketing team could be available for the meeting. To make a long story short, because of leverage, I receive a new list of notice of defaulting homeowners every Monday. This is a list of motivated sellers that is dropped into my email that I do not have to pay for. How great is that?
This site is used to evaluate the current rents in an area, so it’s essentially comps for rent. I use this because not all motivated sellers are willing to sell at 70% ARV, but they are willing to give a sizable discount, maybe 80%. This is still a deal, especially for a buy and hold investor.
They acquire the property with 20% equity position, and as long as the property cash flows pretty well, it’s a deal. My buy and hold guys are normally looking for 10% cap rate (NOI/monthly rent), so I know if I can’t get the property secured for a rehabber, I can use these leads for our rental guys, and rent-o-meter helps by pulling all the current rents for the area.
This acronym stands for “If This Then That.” I am not quite as experienced in using this, but I am working it into my daily processes. Why do I use this? IFTTT is a program that will scrape leads from Craigslist and other sites daily and either send them as an email or create an Excel spreadsheet and store it on your Google Drive, Dropbox, or any other storage retention medium you use. Again, I am just starting to use it, but I believe this will be a game changer for getting daily active notices for leads.
Want an easy and efficient way to coordinate all your social media post? Try PostPlanner. I was running into the problem where all my online marketing was getting overlooked because I was not doing the social media marketing. PostPlanner help alleviate that problem. On this site, you can plan all your social media messages for the week and even for the month. This will set up auto-post so you don’t have to worry about ensuring your message is out. Keep your brand in front of your audience consistently with PostPlanner.
I’ll wrap everything up with Canva.com. We utilize the marketing ability of Canva with PostPlanner. Canva is a marketing platform that will brand all of your posts. For instance, if you found a great quote online, you can upload it to Canva and add your logo. Staying in the mind’s eye of your audience is very important, and social media is oftentimes the best platform these days. By tying PostPlanner and Canva together, you will be able to expand your branding.
I hope by reading this article and my previous article on wholesaling tools, you will find ways to integrate new strategies into furthering your real estate business. Again, these are all budget friendly.
I would appreciate your input if you have other tools that will help our investors move forward in their investment goals or to help a newbie get that first deal done.
Wholesalers: What are some of the coolest new tools you’ve found to make your real estate business run better?
Let me know with a comment!