Skip to content
Home Blog Wholesaling

How To Find Wholesale Real Estate Properties For Sale

Cyrus Vanover
Updated: July 13, 2023 8 min read
How To Find Wholesale Real Estate Properties For Sale

Wholesaling is a popular strategy that many real estate investors use to earn money from homes without owning them. They get to avoid dealing with maintenance issues, tenants, and other landlord issues necessary with other strategies.

If you are interested in wholesaling but aren’t sure about how to find potential properties, there are several simple things you can do to locate them. Wholesale opportunities come up all the time. With the right marketing strategies in place, leads may come to you. This lets you concentrate on what you do best—closing deals.

What Are Wholesale Properties?

A wholesale real estate property is any home you can purchase for less than its current market value. They are usually located in communities with strong demand for rental properties. They also usually have strong value-add potential.

There are several reasons why property owners would consider selling homes for a discount. People may inherit properties, for example, and not have the time or interest to fix them up. They may be open to selling before the property taxes or mortgage payments are due so they can move on.

People may also be interested in selling properties because they need significant repairs and cosmetic improvements. The owners could be intimidated by the amount of work involved. Selling the homes at a discount allows them to get rid of something they may consider a burden or money pit.

People could also be willing to sell properties below the current market value because they’re being foreclosed upon. These distressed property owners may agree to a short sale to avoid damaging their credit scores and to put the issue behind them.

How Does Wholesaling Work?

There are two steps to the real estate wholesaling process. You first locate an undervalued home and put it under contract. You then find a real estate investor looking for a great deal and sell the contract to that person for a fee.

The primary benefit of finding wholesale properties to flip is that you don’t have to be a landlord. You are essentially a matchmaker who brings sellers and buyers together. The strategy requires little capital investment and is simple to understand and implement.

Listed vs. Unlisted Wholesale Properties

You can group real estate wholesale properties into two categories: listed and unlisted. Whether a property is listed or unlisted will influence how much competition there is for it, which will be a factor in the price you negotiate.

If a property is listed, it is for sale on the multiple listing service (MLS). Listed properties may be owned by private sellers, bank-owned (REO properties), or pre-foreclosures. Although listed properties are relatively easy to find, there will be more competition for them. This could drive up the prices and make it more difficult to find great deals.

Unlisted properties are not listed on the MLS. Because fewer people will be aware of them, there will be less competition. This means you will have a greater chance of getting a good deal. Although unlisted properties are more difficult to find, the financial reward is often worth the effort.

Offline Strategies

If you are wondering how to find wholesale properties, offline strategies are simple, effective, and have been used successfully by investors for years. An offline strategy refers to any strategy that doesn’t involve finding wholesale properties on the internet.

Put up bandit signs

bandit sign is a sign that advertises that you are interested in buying homes. You may have seen them in your community or other places. They usually say things like, “Sell Your House for Cash” or “We Buy Homes.”

Bandit signs are a great way to attract sellers. However, before you place them in your community, it’s important to ensure you comply with local regulations and laws so you don’t run into any issues. You will also need to ask for permission from landowners before placing signs.

Driving for dollars

Driving around to look for distressed properties is a strategy that any real estate wholesaler can use. It’s simple and highly effective. The only expense is your time and a little gas money.

The idea is to drive around in different communities looking for neglected properties. You could be looking for homes that look vacant or with overgrown lawns. When you spot potential properties, you can contact the owners and make offers to buy them.

You can use this strategy any time you drive somewhere. You could watch for wholesale deal opportunities on your way to and from work, running errands, and driving to other places.

Send direct mail

Direct mail marketing involves sending letters to owners of pre-foreclosure properties and other motivated sellers. Many people don’t like cold calling, and sending letters is a great way to let owners know you are interested in buying their homes. You can use this strategy simultaneously with bandit signs, newspaper ads, and other strategies.

Place ads in the newspaper

Newspaper ads have been used for decades to buy and sell things. Investors use them to advertise that they are interested in buying distressed properties. You could run a simple “I Buy Houses” ad in a local newspaper to reach those who don’t use the internet.

Network with real estate professionals

Building strong relationships with others in the real estate industry is a great way to learn about distressed properties. For example, someone investing in apartment complexes may know of a potential wholesale deal and pass the tip on to you.

Attending local real estate meetups is a great way to grow your network of investment professionals. Be sure to get to know people at these events. In addition to investors, you may also talk with real estate agents, financiers, and others who could help you find deals or grow your portfolio.

Research courthouse records

Real estate wholesalers may be able to find distressed properties owned by researching public records at the courthouse. Default notices, foreclosures, or tax liens may indicate a potential wholesale deal.

An important benefit of searching the courthouse records is that when you find a property that looks interesting, the records will tell you who the owner is. This could help you save time. It could allow you to make an offer before other investors discover it.

Build relationships with other wholesalers

Just because another real estate investor uses the same strategy doesn’t necessarily mean that person is your competition. Building relationships with other wholesalers may be a great way to find properties owned by distressed homeowners.

Someone may be interested in finding an investment property in one community, for example, while you are targeting another neighborhood. You can share tips to help you both find the right properties for your needs.

Contact local property management companies

Local property managers may know of vacant or distressed properties that may be good prospects for wholesaling. Some of the properties they manage could also be potential investments. One of their clients, for example, may be ready to retire or need to sell quickly for another reason. A property manager may be willing to help out if there is a chance the company could continue to manage the property.

Work with probate attorneys

A probate property involves a home or other property where the owner recently died. The property must go through the probate process before being passed on to heirs.

Sometimes, a probate property must be sold to pay off creditors. For example, if there is still a mortgage on a probate home, it may be necessary to sell the home to pay off the lender.

If you work with a probate attorney, that person could let you know when an investment property becomes available so you can make an offer to the heirs. A probate attorney may be willing to work with you because having a potential buyer on hand could help to speed up the probate process.

Develop relationships with lenders

Banks, credit unions, and private lenders occasionally have to foreclose on homes when the owners stop making their monthly payments. Some lenders may be willing to sell foreclosed properties to you at a discount to remove them from their books.

Develop relationships with contractors

Contractors often work with investors to rehab properties to flip or rent. If you develop relationships with contractors in your community, you could ask them to let you know if they find a motivated seller or vacant property. They may be willing to work with you if there’s a possibility that you may give them business rehabbing one of your properties in the future.

Online Strategies

Online strategies to find wholesale properties involve using the internet to search for opportunities. It could involve using a search engine, browsing popular buy and sell website listings, and doing other things.

Market your website

Website marketing is similar to newspaper ads, except that it involves creating a website to advertise that you are interested in buying distressed properties. You can use pay-per-click (PPC) advertising and search engine optimization (SEO) to target people searching for certain phrases and terms. Examples of search terms you can target include:

  • Buy my home
  • Cash for houses
  • Tips to sell house fast
  • Desperate to sell house
  • I need to sell house fast

When people click on your ad, it will take them to your website to learn how you can help them and how to contact you.

Check expired MLS listings

An expired MLS listing is any real estate owned that did not sell by a date specified in the listing contract. When listings expire, sellers can either list the property again with the same agent or list with a new agency.

An expired MLS listing may indicate low interest in a particular home. If you are working with one, a real estate agent will know which home listings have expired in your target market. You can then contact the sellers with offers to buy.

Search Craigslist

Searching Craigslist is a great way for real estate investors to find distressed properties. Like an online newspaper advertisement, you can place an ad to help you find wholesale deals. You can also browse the listings to look for motivated sellers. You can also search Hubzu, For Sale By Owner, Auction.com, and other buy-and-sell sites.

Use social media

You can use social media platforms like Facebook, Instagram, LinkedIn, and others to get the word out that you are looking for a home to buy. PPC advertising can also be used to target motivated sellers on these platforms.

Social media is also great for connecting with other real estate professionals. You may be able to find local groups for real estate investors on Facebook and LinkedIn, for example. You could let everyone in the group know you are looking for distressed properties and ask them to watch for you.

The Bottom Line

The question of how to find wholesale properties is easily solved when you utilize the strategies previously mentioned. There are many undervalued properties that motivated owners would love to sell—if they only knew someone who wanted to buy them.

Partnering with a real estate agent specializing in investing is another strategy to find wholesale properties to flip. An agent can assist you in finding properties that meet your criteria, and they may also know of properties you aren’t aware of.

Finding investment-friendly real estate agents has never been easier, thanks to BiggerPockets’ Agent Finder. You select the market you want for your investment and enter your criteria. You will then be matched with an agent who fits your needs.

Frequently Asked Questions

If you are considering real estate wholesaling, the following frequently asked questions will help you decide whether this strategy makes sense.

Is wholesaling legal?

Wholesaling real estate is a legal strategy to profit from properties without owning them. It’s important, however, to ensure you fully comply with all local and state laws when structuring wholesale deals. These laws will vary depending on where you buy and sell properties, so it’s important to research them before starting.

Do you need money to wholesale real estate?

Real estate investing with wholesale properties is something you can do with little money. That’s one reason why the strategy is so popular. Because you won’t be buying the property you put under contract, you don’t have to secure financing or deal with closing costs.

Although very little capital is required to structure wholesale real estate deals, they may still involve some fees. For example, you may have to hire an attorney to write the contract.

What to know when buying a house with tenants

If you are wholesaling real estate and get a property under contract with tenants, it’s important to familiarize yourself with the lease agreement. Be sure to review the monthly rental income and expenses to make sure the property is profitable. A property with a positive cash flow will be easier to wholesale than one with a negative cash flow or breaking even.

In any wholesale real estate deal that involves tenants, it’s a good idea to introduce yourself to the tenants as the new owner and explain what’s going on. Address any questions or concerns and ensure their lease agreements will be honored.

Do you need a real estate license to wholesale?

You do not need a real estate license for wholesale real estate investing, which is why the strategy is so popular. It requires little capital, and anyone can do it without a special license or certification.

Join the community

Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.