The internet is filled with tons of information on how to generate new leads, and a lot of times when you’re first starting off, it can be a challenge determining which lead generation strategy will actually yield results.
Now let me first ask you this.
Do you have time and money to blow on experimenting on new strategies that may or may not send you high quality leads?
Yeah, me neither.
So what I’ve done is come up with the top four most affordable lead generation strategies you can utilize in your wholesaling business. These strategies have yielded me great results, and I hope they do the same for you.
So with that, let’s jump into today’s post!
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.
4 Ways to Generate New Wholesaling Leads That Actually Work
1. Making Offers on the Multiple Listing Service (MLS)
The Multiple Listing Service (MLS) is an online database of properties that are currently on the market and properties that have been sold. This database is exclusively available to real estate agents, so you’ll need to have your real estate license in order to gain access to this database.
But I want to emphasize these four letters.
Yes, the MLS is free!
This is one of the many reasons why the MLS is a great lead generation strategy.
Now, there are general fees and dues you have to pay prior to receiving your license, but once the dues are paid, you’ll gain access to the MLS, giving you access to leads right at your fingertips!
What’s also great about this strategy is that you can automate it and have leads sent directly to your inbox.
Now, I have to be honest with you guys — this strategy requires a lot of time and effort.
In order to see a high success rate with this strategy, I would recommend putting in about 20 offers per week in order to close on 1 to 2 deals a month.
See, that’s the another great thing about the MLS. There are no limits on the number of offers you can make. You can make as many offers you want!
It’s up to you to put in the work and make something happen!
Now, despite the fact that you’re going to spend a lot of time scrubbing through hundreds of leads in order to find that diamond in the rough, it’s totally worth it, and it’s a great lead generation strategy if you don’t have a marketing budget.
Say your average deal is $3,000. If you’re bringing in 1 to 3 deals a month from the MLS, you can easily make between $3000-$9000 a month.
I know several veteran wholesalers in my market who have had high success rates utilizing the MLS as an ongoing lead generation strategy.
Also keep in mind that once you have extra money, you can always hire a virtual assistant to make offers for you on the MLS.
That’s why it’s extremely important to have you real estate license as a wholesaler — because this is definitely a strategy you don’t want to sweep under the rug!
2. Making HUD Offers
HUD is another free online lead generation strategy. The United States Department of Housing and Urban Development (HUD) manages a host of deals that are called REOs (real estate owned properties).
REOs are bank-owned properties that did not sale at a foreclosure auction.
Now, remember — banks have zero interest in owning and maintaining real estate properties, so they want to liquidate the asset immediately by selling the property at a lofty discount through HUD.
Unlike with the MLS, you don’t need a real estate license in order to gain access. You can simply set up an online profile and begin making bids on an endless supply of properties in no time!
Still, this strategy also requires a lot of time and effort. So you’ll need to make a minimum of 20 offers per week to get 1 -2 deals per month.
But just think about this…
If you close 2 deals from the MLS and 2 from HUD at a conservative $3000 a pop, you’ve easily made $12,000 a month!
3. Making Offers at Online and Offline Auctions
Real estate auctions are a fantastic way to generate new leads and find deals; however, there’s a lot of risk involved with bidding for properties online, and the ultimate success of this strategy solely depends on your capability to analyze a deal properly.
And here is the reason why.
In most cases, you can’t inspect the property and gather rehab costs until after you’ve already purchased it, leaving a lot of room for surprises and unexpected rehab costs and expenses.
Although there are risks involved, don’t be afraid to take risks!
Due your due diligence by researching the various online real estate auctions out there. Take the time to really learn how this strategy works and start bidding on properties.
If you learn how to properly analyze a deal, real estate auction bidding is a great lead generation strategy if done the right way!
4. Using the Power of Networking
Guys, I can’t stress how important it is to leverage your network as a lead generation strategy.
The old saying goes, “It’s not what you know, it’s who you know.”
You’d be surprised the amount of properties that will literally fall in your lap simply because an investor doesn’t have time and is willing to sell the property to you for dirt cheap just to get rid of it.
That’s why it’s extremely important to have your face and name out there in your real estate investing community as much as possible!
You can do this by attending a local real estate investor meetup at least once a week.
I would also recommend utilizing BiggerPockets as a networking tool. This is a great way find and connect with other investors in your market. Be active in the BiggerPockets community by participating in forum discussions and commenting on blog posts.
You can even go as far as creating your own real estate investor monthly meetup group.
Think outside of the box! There are so many ways you can network with other real estate investors.
Just think about it. If you constantly put yourself out there as a real estate wholesaler, I guarantee you, the top flippers, the top buy and hold investors, and the top wholesalers in your market will send leads at the drop of a hat.
Networking is such a crucial asset to your wholesaling business and a great way to generate leads!
So there you have it — these are the top four lead generation strategies with proven success!
These strategies don’t require a lot of money, but they will require a lot of time and effort, so don’t expect these strategies to work overnight!
Trust me, I know that submitting hundreds of offers on the MLS, HUD, or other online auctions sounds a bit boring, but you have to stick with it.
Don’t be afraid to put in a little sweat equity to grow your business.
If you need to start off with just one of these strategies and work your way up, that’s totally OK! What really matters is that you’re putting in the effort.
Then once you built up enough working capital, you can create systems and hire a VA to submit offers for you.
It’s that simple.
So with that, I hope today’s blog post encourages someone out there looking for ways to generate leads at little to no cost.
What lead generation strategies have you found the most useful in your wholesaling business?
See you in comments section!