Anyone Else Worn Out by Wholesalers Texts and Postcards?

115 Replies

@Mark Przybysz,

Wholesalers will scrub data against DNC and Litigators list. For text messages, they will ignore DNC list but they will certainly stay away from the Litigators list. So if you take your time to really sue one of them, you will get onto that list. Then you will have peace and quiet. Their attorneys are telling them that they will be TCPA compliant if the virtual assistant manually clicks send for each text message.

If you want to cause some pain immediately, you can reply to the text message many times. Each message will cost her maybe 10 cents. So if you can figure out a way to send 10000 messages to the number, just a simple A, B, C or D etc.., it will certainly aggravate the wholesaler.  

  

Property in my investment area has gone up @ 50-75% since Covid, so I've been getting cold calls wanting to buy one of properties. I just say that I would only consider selling for full market value plus enough to make my tenants happy to move. End of calls.

Originally posted by @Todd Groom :

@Mark Przybysz I’m tired of the calls. And like I can almost be ok with a call one time. I’m nice and tell them I’m a buy and hold and never sell. What I hate is when the same person calls me every week. And I tell them over and over I’m not selling. That’s when it gets annoying.

Annoyance, or  opportunity? There is actually good fun to be had with unwelcome callers; 

If it's one particular wholesaler, pick an unreasonably high "make me move" price. I suggest 50%-100% over high FMV. Fake delight; "Sure! You know, I've been thinking about what it would take for me to sell that property! It's easy to manage, I like it and I don't really need to sell, so the price is $750k. I'll be using my own Realtor for the deal, of course. I really hate to disturb the tenants, so you'd need to deposit 10% earnest money up front in order to view the property, and I'll want to compensate my tenants for the inconvenience by paying for them to have a night out on the town, so about $250 of that earnest money will be a non-refundable viewing fee. Also if I sell this property, I'll have to line up a 1031 purchase for tax reasons, so it could be in escrow for quite a while until I find something else I REALLY like. You know, something that makes sense financially. Based on the current market, I'm guessing that could easily take 6-9 months. Does this sound like something you are interested in?" (if he calls back raise the your "asking" price by $10k each call).

That SHOULD get you on his  "greedy whacko nut job" list. If not, there are a lot of fun scripts from the bad old days of telemarketers ("Wait! How did you get this number? Lieutenant! Trace this call!").

@Nicky Reader Funny. Friend sold inherited apartment complex 1031 to sfh portfolio. I can only assume to be able to sell off one by one as needed during retirement. Different folks have different strokes.

@Mark Przybysz Seems like there is a new breed of wholesalers. I got back into RE investing about 2 years ago and noticed allot of wholesalers contacting new with what in my opinion where terrible deals. Years ago I often used wholesalers who were quite helpful in finding deals, were accurate with repair costs and ARV's. This new breed of wholesalers are clueless with repair costs, ARV and really don't care. Also seems like some are trying to wholesale MLS listed properties. There must be wholesaling 101 courses be offered or something that is bringing a new breed of wholesalers I the game.

Geez...the smug attitudes in this thread...

"Oh no, you're getting direct mail...must be so hard to throw it out along with all the insurance, cable, coupons you get." (Do you complain about those to AT&T and WalMart?)

To anyone reading this thread

...who didn't invest in real estate 30 years ago (and it's appreciated 200%+ since then)

...who didn't buy all their properties on the courthouse steps 20 years ago

...or. who didn't buy REOs when they rained from the sky like manna in 2011

Finding off-market deals is $#*@*% hard. Especially in one of the hottest markets in history.

Well, when you've only invested for 1-5 years...You have no credibility. 

You have to MAKE your own luck. 

---

I sent out 2800 letters last month...got 3 deals...in a hot market. (I closed on all of them, no wholesaling)

#1. I didn't use 'deceptive' practices

#2. I didn't 'trick' someone out of their property. They knew they were selling at a discount.

#3. They weren't 'dumb' sellers. 

I got 2 happy video testimonials out of it for proof...

----------

Yes, most wholesalers suck. 

All the people you hear on the podcasts who've made it big all correlate their success to working harder than others...pushing when others are telling them 'no.', 

Why dump on people trying to do the same?

I personally don't text random numbers as that's lazy and I think it starts a relationship off wrong...

But maybe see these people reaching out as potential partners...real estate is small enough as it is.

I regularly get multiple identical post cards (from different "buyers") at one.  IE there are 3-5 people hiring the same direct mailing company to do their postcards and I receive all of them at the same time, and they all go in the trash at the same time.

I don't mind the direct mail so much, but the ringless voicemails and cold calls from VA's really annoy me. Ironically enough the few times I've been in the mood to entertain these, they almost never even follow through with an offer or anything.

I am a very successful Wholesaler as well as an Investor. I will continue doing what I have been doing for years. I am a Realeatate solutions provider. I provide numerous creative financial opportunities to folks that are in need of my help. So like I said I will continue doing what works for us And building my portfolio. (19 properties as of to date with residual income in 3 years). #wholeselling #wereallydothis

Originally posted by @Mark Przybysz :

Daily texts, calls and postcards. Anyone else just absolutely worn out? Everyone has the same pitch too. 

I get called pretty much daily and I get dozens of mailers every month. If I even see a Phoenix, AZ phone number I don't even answer. Now they are starting with the text messages. I block them all, but they obviously are spoofing. 

Originally posted by @Joe Cassandra :

Geez...the smug attitudes in this thread...

"Oh no, you're getting direct mail...must be so hard to throw it out along with all the insurance, cable, coupons you get." (Do you complain about those to AT&T and WalMart?)

To anyone reading this thread

...who didn't invest in real estate 30 years ago (and it's appreciated 200%+ since then)

...who didn't buy all their properties on the courthouse steps 20 years ago

...or. who didn't buy REOs when they rained from the sky like manna in 2011

Finding off-market deals is $#*@*% hard. Especially in one of the hottest markets in history.

Well, when you've only invested for 1-5 years...You have no credibility. 

You have to MAKE your own luck. 

---

I sent out 2800 letters last month...got 3 deals...in a hot market. (I closed on all of them, no wholesaling)

#1. I didn't use 'deceptive' practices

#2. I didn't 'trick' someone out of their property. They knew they were selling at a discount.

#3. They weren't 'dumb' sellers. 

I got 2 happy video testimonials out of it for proof...

----------

Yes, most wholesalers suck. 

All the people you hear on the podcasts who've made it big all correlate their success to working harder than others...pushing when others are telling them 'no.', 

Why dump on people trying to do the same?

I personally don't text random numbers as that's lazy and I think it starts a relationship off wrong...

But maybe see these people reaching out as potential partners...real estate is small enough as it is.

 Do you think we are complaining about mailers......lol

I get a lot of phone calls and text messages. I ask to be removed from lists and I am ignored. I block the numbers and they just change the number and keep calling. 


If that is how a wholesaler wants to do business, they will get ZERO respect from me.

Originally posted by @Joe Cassandra :

Geez...the smug attitudes in this thread...

"Oh no, you're getting direct mail...must be so hard to throw it out along with all the insurance, cable, coupons you get." (Do you complain about those to AT&T and WalMart?)

To anyone reading this thread

...who didn't invest in real estate 30 years ago (and it's appreciated 200%+ since then)

...who didn't buy all their properties on the courthouse steps 20 years ago

...or. who didn't buy REOs when they rained from the sky like manna in 2011

Finding off-market deals is $#*@*% hard. Especially in one of the hottest markets in history.

Well, when you've only invested for 1-5 years...You have no credibility. 

You have to MAKE your own luck. 

---

I sent out 2800 letters last month...got 3 deals...in a hot market. (I closed on all of them, no wholesaling)

#1. I didn't use 'deceptive' practices

#2. I didn't 'trick' someone out of their property. They knew they were selling at a discount.

#3. They weren't 'dumb' sellers. 

I got 2 happy video testimonials out of it for proof...

----------

Yes, most wholesalers suck. 

All the people you hear on the podcasts who've made it big all correlate their success to working harder than others...pushing when others are telling them 'no.', 

Why dump on people trying to do the same?

I personally don't text random numbers as that's lazy and I think it starts a relationship off wrong...

But maybe see these people reaching out as potential partners...real estate is small enough as it is.

Joe keep in mind the folks commenting here know the score.. so of course they are going to be jaded and annoyed etc.

thats not who wholesalers are targeting .. or any buyer for that matter..  they are looking for the seller that has some sort of motivation.

1. burnt out landlord

2. inherited a mess

3. financial distress

4. just plain weird and afraid of RE agents.

these folks are not looking to do business with buy and hold investors on BP per se unless they want them for THEIR buyers list.. although with all the how to training that goes on .. and the miss information / Fake news that wholesaling is the quickest way to build capital when you have no capital.. you have thousands upon thousands of folks giving it try and following the recipe they learn at these seminars or in the webinar they watched etc. And really its not mystery there is only a few ways to contact a seller.

1. US mail

2. Fed ex 

3. Pound on their door

4. call them 

5. Text  ( which i hate personally) and this just became a thing in the last decade. 

6. other advertising medium's like billboards  radio ads TV ads  internet U tube ads.  Oh ya and facebook and linkdin and I guess tweeter I don't have any of those but I suppose people use those as well.  But a lot of owners are going to be older and not tech or up with the tech / computer social media stuff

with the post card i guess being the easiest since it tends to be turn key for the beginner.. IE send us 5k we will send out this many post cards to the zips you provide.. 

When I was in the land and Timber business..  We did door knocking  and Telemarketing.. both very effective.. for one thing on the telemarketing rural land owners RARELY get any kind of solicitations.. So my telemarketers who were in my office would get into some nice conversations with these folks..  Its when your in an urban setting that your going to get hammered.. 

Also since we went for very small niche.. A letter of intro from our attorney stating that we would like to start negotiations to buy their property was highly effective HIGHLY.. 

 

Originally posted by @Mark Przybysz :
To those who are tired of the hassle. What are your preferred ways to reduce the amount of volume? 
Based on responses so far, changing a phone number to google voice might be the winner.

I've tried having them add me to buyer list, but then I find myself in a catch-22 described by @joe cassandra. I no longer ask to be on the buyer list, it doesn't help and I do not want to be on any list with wholesalers.
I've tried about 100 different approaches to answering calls and texts.
They rarely provide contact info, almost always call from some kind of bogus number showing a local(ish) area code, and then they ask me about 100 questions about my property which they clearly haven't researched.
The best I've come up with is saying, "No thanks, and please take me off your contact list." But the volume keeps coming, it's not like I can track who's calling and texting since they use numbers that aren't their own.

Also, I have a day job. While I'd love to make their life harder, I'd rather spend my day and time doing proactive things that add positivity to this crazy world we're living in. Spending my free time sending negative energy their way is a waste for more than one group.

I'd really just like to see wholesalers use some danm common sense instead of just doing what their mentor told them works. "One out of a million huh, so your saying there's a chance!" should be their motto.

Keep in mind if you actually get on the phone with them.. Most of the time its a VA working on a script.. trying to narrow down potential targets.. then they will hand off to the owner .. who may or may not call you back..

And some of these guys at least here in Oregon are bird dogging for RE agents as well.. if they cant get a smokin deal on your house they refer you to an agent.. but unless they are licensed its illegal to pay a referral fee to a non licensed agent..

 

Originally posted by @Matthew Olszak :
Originally posted by @Casey Conner:

@Mark Przybysz

Part of why licensing is important for brokers, which is what "wholesalers" essentially are. 



You must be kidding. Legally wholesaler aren't brokers without a license.

Ethically compare what matters to each by priority:


Licensed brokers

1) Client getting best service and price

2) Honesty to other side of the transaction.

3) Commission


Wholesalers:

1) Their margin

2) Getting buyers with money

567) Seller getting FMV

Originally posted by @Kyle Mailloux :
Originally posted by @Nicky Reader:
Originally posted by @Steve Morris:
Originally posted by @Joe Cassandra:
#1. Your "brilliant scheme" isn't new. Wholesalers try and do this to each other all the time. It's a surefire way to get blackballed by everyone in the area to never work with you. 

I absolutely love how wholesalers act like working with them is some kind of privilege. I have consistently bought at prices much better than anything I see wholesalers are marketing, and in better areas too.  Never bought from a wholesaler basically for that very reason.

Plus I see some of their posts in local groups, they squeal about other wholesalers stealing deals from eachother, all upset, when in fact the seller is actually getting a much better deal because the only way to steal a deal is pay the homeowner more money!   I've also been talking to someone out of state who was ripped off pretty badly by a well known local wholesaler, and trying to help that person towards justice.  Just awful business all around and I wish the state would crack down on it. 

So go ahead, wholesalers, "blackball me".. Like any of you are even seated at a table important enough for it to matter.  Anyway next weekend when Than Merrill and his fortunebuilders hustle comes to town there will be 50 more brand new wholesalers minted out to add to the call queue. 

I'm a newish investor who just closed on my second multifamily off of a wholesale list. While I am very happy with my latest deal, I have been considering direct marketing to sellers to try to find my next deal. I too get a lot of phone calls and texts which I find to be irritating, but my question is what do you all think is the best way to reach out to motivated sellers without pissing people off? I'm mostly interested in multifamilies so I'd likely be calling other investors like yourselves. I plan on using some background information such tax delinquencies, liens, and pre-foreclosure to try and weed out the happy investors before I even make the first call but I'd be curious to know what you all think would provide the most value to the seller and differentiate from the masses of calls that just annoy you. Thanks!

Hey Kyle, 

The key to standing out from wholesalers is all in the approach. Like the other guys said.. you can smell em from a mile away. A great way to generate direct to seller leads that you can get a traceable ROI is through direct mail. The key is differentiating yourself from all the mass marketing list blasters, which isnt all that difficult. A brief personalized approach with a quality mail piece (not just a postcard) can hardly be offensive to a motivated seller.

Another critical factor is your lead quality. Take some time to get local, high quality distress lists. Too many folks are just pulling massive equity lists and just blasting them hoping for a .02% response. Don't play their game, make your own.

 

Originally posted by @Jay Hinrichs :
Originally posted by @Joe Cassandra:

Geez...the smug attitudes in this thread...

"Oh no, you're getting direct mail...must be so hard to throw it out along with all the insurance, cable, coupons you get." (Do you complain about those to AT&T and WalMart?)

To anyone reading this thread

...who didn't invest in real estate 30 years ago (and it's appreciated 200%+ since then)

...who didn't buy all their properties on the courthouse steps 20 years ago

...or. who didn't buy REOs when they rained from the sky like manna in 2011

Finding off-market deals is $#*@*% hard. Especially in one of the hottest markets in history.

Well, when you've only invested for 1-5 years...You have no credibility. 

You have to MAKE your own luck. 

---

I sent out 2800 letters last month...got 3 deals...in a hot market. (I closed on all of them, no wholesaling)

#1. I didn't use 'deceptive' practices

#2. I didn't 'trick' someone out of their property. They knew they were selling at a discount.

#3. They weren't 'dumb' sellers. 

I got 2 happy video testimonials out of it for proof...

----------

Yes, most wholesalers suck. 

All the people you hear on the podcasts who've made it big all correlate their success to working harder than others...pushing when others are telling them 'no.', 

Why dump on people trying to do the same?

I personally don't text random numbers as that's lazy and I think it starts a relationship off wrong...

But maybe see these people reaching out as potential partners...real estate is small enough as it is.

Joe keep in mind the folks commenting here know the score.. so of course they are going to be jaded and annoyed etc.

thats not who wholesalers are targeting .. or any buyer for that matter..  they are looking for the seller that has some sort of motivation.

1. burnt out landlord

2. inherited a mess

3. financial distress

4. just plain weird and afraid of RE agents.

these folks are not looking to do business with buy and hold investors on BP per se  unless they want them for THEIR buyers list.. although with all the how to training that goes on .. and the miss information / Fake news that wholesaling is the quickest way to build capital when you have no capital.. you have thousands upon thousands of folks giving it try and following the recipe they learn at these seminars or in the webinar they watched etc.  And really its not mystery  there is only a few ways to contact a seller.

1. US mail

2. Fed ex 

3. Pound on their door

4. call them 

5. Text  ( which i hate personally) and this just became a thing in the last decade. 

6. other advertising medium's like billboards  radio ads TV ads  internet U tube ads.  Oh ya and facebook and linkdin and I guess tweeter I don't have any of those but I suppose people use those as well.  But a lot of owners are going to be older and not tech or up with the tech / computer social media stuff

with the post card i guess being the easiest since it tends to be turn key for the beginner.. IE send us 5k we will send out this many post cards to the zips you provide.. 

When I was in the land and Timber business..  We did door knocking  and Telemarketing.. both very effective.. for one thing on the telemarketing rural land owners RARELY get any kind of solicitations.. So my telemarketers who were in my office would get into some nice conversations with these folks..  Its when your in an urban setting that your going to get hammered.. 

Also since we went for very small niche.. A letter of intro from our attorney stating that we would like to start negotiations to buy their property was highly effective HIGHLY.. 

 

I agree with what you say Jay. 

And I can see how it's annoying getting texts/calls everyday (I don't do that, only DM and Google PPC). 

No doubt. i get it. I hate spam too.

---------

I'm more discouraged to see long-time investors here scoffing at new people trying to get into the industry. 

I'm only around 12 months in (since I've taken it seriously), and I don't do this full-time as I have another business. 

...So I don't time to build a network of brokers...

...I don't have credibility in my area...

Thus...

I'm testing different ways to find deals on my own (with my wife) as there aren't any 'great' deals on the MLS in North Atlanta, courthouse auctions are a joke, most wholesalers around here are a joke too, and REOs are non-existent. 

So I have to market hard (and spend thousands and thousands) to try and build my portfolio. 

-------

Others may not be as fortunate to have the marketing budget and they have to try other means to drum up leads (like texting). 

I'm guessing the experience others have of answering and not getting a response is simply fear on the part of the wholesaler.

------

I respond to every wholesaler who reaches out about my properties as you never know where that relationship may lead. 

90% are a waste of time, sure. 

But the other 10% could bring just one huge deal to you. 

Maybe I'm just advocating to look at these guys with a different lens...

Especially if you started in RE before low interest rates, low inventory, iBuyers, and technology made it faster for big budgets to find deals.

 

Originally posted by @Jake Soper :
Originally posted by @Kyle Mailloux:
Originally posted by @Nicky Reader:
Originally posted by @Steve Morris:
Originally posted by @Joe Cassandra:
#1. Your "brilliant scheme" isn't new. Wholesalers try and do this to each other all the time. It's a surefire way to get blackballed by everyone in the area to never work with you. 

I absolutely love how wholesalers act like working with them is some kind of privilege. I have consistently bought at prices much better than anything I see wholesalers are marketing, and in better areas too.  Never bought from a wholesaler basically for that very reason.

Plus I see some of their posts in local groups, they squeal about other wholesalers stealing deals from eachother, all upset, when in fact the seller is actually getting a much better deal because the only way to steal a deal is pay the homeowner more money!   I've also been talking to someone out of state who was ripped off pretty badly by a well known local wholesaler, and trying to help that person towards justice.  Just awful business all around and I wish the state would crack down on it. 

So go ahead, wholesalers, "blackball me".. Like any of you are even seated at a table important enough for it to matter.  Anyway next weekend when Than Merrill and his fortunebuilders hustle comes to town there will be 50 more brand new wholesalers minted out to add to the call queue. 

 I'm a newish investor who just closed on my second multifamily off of a wholesale list. While I am very happy with my latest deal, I have been considering direct marketing to sellers to try to find my next deal. I too get a lot of phone calls and texts which I find to be irritating, but my question is what do you all think is the best way to reach out to motivated sellers without pissing people off? I'm mostly interested in multifamilies so I'd likely be calling other investors like yourselves. I plan on using some background information such tax delinquencies, liens, and pre-foreclosure to try and weed out the happy investors before I even make the first call but I'd be curious to know what you all think would provide the most value to the seller and differentiate from the masses of calls that just annoy you. Thanks!

Hey Kyle, 

The key to standing out from wholesalers is all in the approach. Like the other guys said.. you can smell em from a mile away. A great way to generate direct to seller leads that you can get a traceable ROI is through direct mail. The key is differentiating yourself from all the mass marketing list blasters, which isnt all that difficult. A brief personalized approach with a quality mail piece (not just a postcard) can hardly be offensive to a motivated seller.

Another critical factor is your lead quality. Take some time to get local, high quality distress lists. Too many folks are just pulling massive equity lists and just blasting them hoping for a .02% response. Don't play their game, make your own.

 

@Tucker Merrihew     you want to get an App like Tucker Merrihew has its a driving for dollars type app.. very targeted and highly effective from what others tell me..  check it out.. 

 

Originally posted by @Kip Stephens :

 I am a Realeatate solutions provider. I provide numerous creative financial opportunities to folks that are in need of my help.


Suggested Script:

W/S: Mr Owner you've owned your property for a long time and seem enfeebled. Have you talked to anyone about FMV of your property at all?

Owner: Well, no, but I'm stage 4 dementia and going into hospice so need some money to pay bills and leave some for my kids.

W/S: Tell you what, sign this EMA for $50K and while I'll put $0.00 into escrow, let me tie up your property until I can find someone I don't know yet to buy your house at an end price you won't see. Does that sound like a deal?

Owner: Umm, yes, can I talk to my daughter first?

W/S: Well, no, an offer this good doesn't hang out there forever you should sign right NOW.  Those brokers telling you your house is worth $500K just want to list it and advertise to a whole bunch of buyers and it might take up to a month or so to sell.

Owner: Bless you for offering help with your creative solutions.



 

Originally posted by @Joe Cassandra :
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Cassandra:

Geez...the smug attitudes in this thread...

"Oh no, you're getting direct mail...must be so hard to throw it out along with all the insurance, cable, coupons you get." (Do you complain about those to AT&T and WalMart?)

To anyone reading this thread

...who didn't invest in real estate 30 years ago (and it's appreciated 200%+ since then)

...who didn't buy all their properties on the courthouse steps 20 years ago

...or. who didn't buy REOs when they rained from the sky like manna in 2011

Finding off-market deals is $#*@*% hard. Especially in one of the hottest markets in history.

Well, when you've only invested for 1-5 years...You have no credibility. 

You have to MAKE your own luck. 

---

I sent out 2800 letters last month...got 3 deals...in a hot market. (I closed on all of them, no wholesaling)

#1. I didn't use 'deceptive' practices

#2. I didn't 'trick' someone out of their property. They knew they were selling at a discount.

#3. They weren't 'dumb' sellers. 

I got 2 happy video testimonials out of it for proof...

----------

Yes, most wholesalers suck. 

All the people you hear on the podcasts who've made it big all correlate their success to working harder than others...pushing when others are telling them 'no.', 

Why dump on people trying to do the same?

I personally don't text random numbers as that's lazy and I think it starts a relationship off wrong...

But maybe see these people reaching out as potential partners...real estate is small enough as it is.

Joe keep in mind the folks commenting here know the score.. so of course they are going to be jaded and annoyed etc.

thats not who wholesalers are targeting .. or any buyer for that matter..  they are looking for the seller that has some sort of motivation.

1. burnt out landlord

2. inherited a mess

3. financial distress

4. just plain weird and afraid of RE agents.

these folks are not looking to do business with buy and hold investors on BP per se  unless they want them for THEIR buyers list.. although with all the how to training that goes on .. and the miss information / Fake news that wholesaling is the quickest way to build capital when you have no capital.. you have thousands upon thousands of folks giving it try and following the recipe they learn at these seminars or in the webinar they watched etc.  And really its not mystery  there is only a few ways to contact a seller.

1. US mail

2. Fed ex 

3. Pound on their door

4. call them 

5. Text  ( which i hate personally) and this just became a thing in the last decade. 

6. other advertising medium's like billboards  radio ads TV ads  internet U tube ads.  Oh ya and facebook and linkdin and I guess tweeter I don't have any of those but I suppose people use those as well.  But a lot of owners are going to be older and not tech or up with the tech / computer social media stuff

with the post card i guess being the easiest since it tends to be turn key for the beginner.. IE send us 5k we will send out this many post cards to the zips you provide.. 

When I was in the land and Timber business..  We did door knocking  and Telemarketing.. both very effective.. for one thing on the telemarketing rural land owners RARELY get any kind of solicitations.. So my telemarketers who were in my office would get into some nice conversations with these folks..  Its when your in an urban setting that your going to get hammered.. 

Also since we went for very small niche.. A letter of intro from our attorney stating that we would like to start negotiations to buy their property was highly effective HIGHLY.. 

 

I agree with what you say Jay. 

And I can see how it's annoying getting texts/calls everyday (I don't do that, only DM and Google PPC). 

No doubt. i get it. I hate spam too.

---------

I'm more discouraged to see long-time investors here scoffing at new people trying to get into the industry. 

I'm only around 12 months in (since I've taken it seriously), and I don't do this full-time as I have another business. 

...So I don't time to build a network of brokers...

...I don't have credibility in my area...

Thus...

I'm testing different ways to find deals on my own (with my wife) as there aren't any 'great' deals on the MLS in North Atlanta, courthouse auctions are a joke, most wholesalers around here are a joke too, and REOs are non-existent. 

So I have to market hard (and spend thousands and thousands) to try and build my portfolio. 

-------

Others may not be as fortunate to have the marketing budget and they have to try other means to drum up leads (like texting). 

I'm guessing the experience others have of answering and not getting a response is simply fear on the part of the wholesaler.

------

I respond to every wholesaler who reaches out about my properties as you never know where that relationship may lead. 

90% are a waste of time, sure. 

But the other 10% could bring just one huge deal to you. 

Maybe I'm just advocating to look at these guys with a different lens...

Especially if you started in RE before low interest rates, low inventory, iBuyers, and technology made it faster for big budgets to find deals.

 

its a sifting process no doubt..  if you have the time and energy to sift through it al that's a business decision.  This thread got me to thinking.

I wrote my operations manager today and I think I have an INFO @   e mail that goes to my company website.. so what I am going to do now. Is have all the wholesalers who contact me take down that e mail.. so the potentials in all the states and markets we do work in go to one central place.. then if we are interested we can contact them.. But I wont go for the HEY i sent this to 500 people you need to give me an offer in 24 hours.. thats how Morris sucked into thousand investors.. But if we can prove to these folks WE ARE real then maybe we can get a more traditional relationship like I have with my RE broker network we have established over the decades.. ??  And like you said I suspect if we put some energy into it maybe we can find a deal for our vendors / so we can fund it for them. 

And then when the deals come through i just run them through housefolios and in 5 minutes i will know if they are even remotely worth chasing. 

 

Originally posted by @Steve Morris :
Originally posted by @Kip Stephens:

 I am a Realeatate solutions provider. I provide numerous creative financial opportunities to folks that are in need of my help.

Suggested Script:

W/S: Mr Owner you've owned your property for a long time and seem enfeebled. Have you talked to anyone about FMV of your property at all?

Owner: Well, no, but I'm stage 4 dementia and going into hospice so need some money to pay bills and leave some for my kids.

W/S: Tell you what, sign this EMA for $50K and while I'll put $0.00 into escrow, let me tie up your property until I can find someone I don't know yet to buy your house at an end price you won't see. Does that sound like a deal?

Owner: Umm, yes, can I talk to my daughter first?

W/S: Well, no, an offer this good doesn't hang out there forever you should sign right NOW.  Those brokers telling you your house is worth $500K just want to list it and advertise to a whole bunch of buyers and it might take up to a month or so to sell.

Owner: Bless you for offering help with your creative solutions.

 

This "script" proves you have no idea what you're talking about. 

99% of sellers are of sound mind. 

100% want full retail price without paying a realtor.

5% get to a point where they need money right now...need to get rid of the house fast...or like one guy who I met 2 weeks ago who has a 500k house...he just doesn't want to deal with fixing up the house to sell. (he's a millionaire and self-employed).

---------

Stop thinking everything about selling a house has to do with price. 

It doesn't. 

Send out 2000 letters and talk to the 10-20 people who call. 

You'll realize quickly 50% of them have a problem they need solved that doesn't have to do wtih getting 100% of the value out of their house. 

----

Stop ripping shock-and-awe headlines from newspapers and generalizing it. 

Here's a generalization about realtors: 

1) Most lie to their buying clients about there being 'multiple offers' on a house

2) Most lie about comps saying "this house is a great buy" when their comps are of new builds (happened to me)

3) Most don't return phonecalls and complain why they make $0 

4) Most listing agents will tell their sellers to just 'take' an offer and all the concessions/repairs because no other offers will come around...but really they just want their commission check so they pay their mortgage

 

Originally posted by @Jay Hinrichs :
Originally posted by @Joe Cassandra:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Cassandra:

Geez...the smug attitudes in this thread...

"Oh no, you're getting direct mail...must be so hard to throw it out along with all the insurance, cable, coupons you get." (Do you complain about those to AT&T and WalMart?)

To anyone reading this thread

...who didn't invest in real estate 30 years ago (and it's appreciated 200%+ since then)

...who didn't buy all their properties on the courthouse steps 20 years ago

...or. who didn't buy REOs when they rained from the sky like manna in 2011

Finding off-market deals is $#*@*% hard. Especially in one of the hottest markets in history.

Well, when you've only invested for 1-5 years...You have no credibility. 

You have to MAKE your own luck. 

---

I sent out 2800 letters last month...got 3 deals...in a hot market. (I closed on all of them, no wholesaling)

#1. I didn't use 'deceptive' practices

#2. I didn't 'trick' someone out of their property. They knew they were selling at a discount.

#3. They weren't 'dumb' sellers. 

I got 2 happy video testimonials out of it for proof...

----------

Yes, most wholesalers suck. 

All the people you hear on the podcasts who've made it big all correlate their success to working harder than others...pushing when others are telling them 'no.', 

Why dump on people trying to do the same?

I personally don't text random numbers as that's lazy and I think it starts a relationship off wrong...

But maybe see these people reaching out as potential partners...real estate is small enough as it is.

Joe keep in mind the folks commenting here know the score.. so of course they are going to be jaded and annoyed etc.

thats not who wholesalers are targeting .. or any buyer for that matter..  they are looking for the seller that has some sort of motivation.

1. burnt out landlord

2. inherited a mess

3. financial distress

4. just plain weird and afraid of RE agents.

these folks are not looking to do business with buy and hold investors on BP per se  unless they want them for THEIR buyers list.. although with all the how to training that goes on .. and the miss information / Fake news that wholesaling is the quickest way to build capital when you have no capital.. you have thousands upon thousands of folks giving it try and following the recipe they learn at these seminars or in the webinar they watched etc.  And really its not mystery  there is only a few ways to contact a seller.

1. US mail

2. Fed ex 

3. Pound on their door

4. call them 

5. Text  ( which i hate personally) and this just became a thing in the last decade. 

6. other advertising medium's like billboards  radio ads TV ads  internet U tube ads.  Oh ya and facebook and linkdin and I guess tweeter I don't have any of those but I suppose people use those as well.  But a lot of owners are going to be older and not tech or up with the tech / computer social media stuff

with the post card i guess being the easiest since it tends to be turn key for the beginner.. IE send us 5k we will send out this many post cards to the zips you provide.. 

When I was in the land and Timber business..  We did door knocking  and Telemarketing.. both very effective.. for one thing on the telemarketing rural land owners RARELY get any kind of solicitations.. So my telemarketers who were in my office would get into some nice conversations with these folks..  Its when your in an urban setting that your going to get hammered.. 

Also since we went for very small niche.. A letter of intro from our attorney stating that we would like to start negotiations to buy their property was highly effective HIGHLY.. 

 

I agree with what you say Jay. 

And I can see how it's annoying getting texts/calls everyday (I don't do that, only DM and Google PPC). 

No doubt. i get it. I hate spam too.

---------

I'm more discouraged to see long-time investors here scoffing at new people trying to get into the industry. 

I'm only around 12 months in (since I've taken it seriously), and I don't do this full-time as I have another business. 

...So I don't time to build a network of brokers...

...I don't have credibility in my area...

Thus...

I'm testing different ways to find deals on my own (with my wife) as there aren't any 'great' deals on the MLS in North Atlanta, courthouse auctions are a joke, most wholesalers around here are a joke too, and REOs are non-existent. 

So I have to market hard (and spend thousands and thousands) to try and build my portfolio. 

-------

Others may not be as fortunate to have the marketing budget and they have to try other means to drum up leads (like texting). 

I'm guessing the experience others have of answering and not getting a response is simply fear on the part of the wholesaler.

------

I respond to every wholesaler who reaches out about my properties as you never know where that relationship may lead. 

90% are a waste of time, sure. 

But the other 10% could bring just one huge deal to you. 

Maybe I'm just advocating to look at these guys with a different lens...

Especially if you started in RE before low interest rates, low inventory, iBuyers, and technology made it faster for big budgets to find deals.

 

its a sifting process no doubt..  if you have the time and energy to sift through it al that's a business decision.  This thread got me to thinking.

I wrote my operations manager today and I think I have an INFO @   e mail that goes to my company website.. so what I am going to do now. Is have all the wholesalers who contact me take down that e mail.. so the potentials in all the states and markets we do work in go to one central place.. then if we are interested we can contact them.. But I wont go for the HEY i sent this to 500 people you need to give me an offer in 24 hours.. thats how Morris sucked into thousand investors.. But if we can prove to these folks WE ARE real then maybe we can get a more traditional relationship like I have with my RE broker network we have established over the decades.. ??  And like you said I suspect if we put some energy into it maybe we can find a deal for our vendors / so we can fund it for them. 

And then when the deals come through i just run them through housefolios and in 5 minutes i will know if they are even remotely worth chasing. 

 

That's a good idea. 

I mean if you waste 10 hours of your year talking to wholesalers, but one of them brings you a deal that nets you 50-100k...is it a waste of time? 

For some, maybe if you're used to fatter deals. 

For most, they'd take that haha

That's all I'm saying rather than just putting people down who have to market to find their deals because I don't have your 30-year track record yet, Jay (hopefully one day :D )

 

Originally posted by @Jay Hinrichs :
Originally posted by @Jake Soper:
Originally posted by @Kyle Mailloux:
Originally posted by @Nicky Reader:
Originally posted by @Steve Morris:
Originally posted by @Joe Cassandra:
#1. Your "brilliant scheme" isn't new. Wholesalers try and do this to each other all the time. It's a surefire way to get blackballed by everyone in the area to never work with you. 

I absolutely love how wholesalers act like working with them is some kind of privilege. I have consistently bought at prices much better than anything I see wholesalers are marketing, and in better areas too.  Never bought from a wholesaler basically for that very reason.

Plus I see some of their posts in local groups, they squeal about other wholesalers stealing deals from eachother, all upset, when in fact the seller is actually getting a much better deal because the only way to steal a deal is pay the homeowner more money!   I've also been talking to someone out of state who was ripped off pretty badly by a well known local wholesaler, and trying to help that person towards justice.  Just awful business all around and I wish the state would crack down on it. 

So go ahead, wholesalers, "blackball me".. Like any of you are even seated at a table important enough for it to matter.  Anyway next weekend when Than Merrill and his fortunebuilders hustle comes to town there will be 50 more brand new wholesalers minted out to add to the call queue. 

 I'm a newish investor who just closed on my second multifamily off of a wholesale list. While I am very happy with my latest deal, I have been considering direct marketing to sellers to try to find my next deal. I too get a lot of phone calls and texts which I find to be irritating, but my question is what do you all think is the best way to reach out to motivated sellers without pissing people off? I'm mostly interested in multifamilies so I'd likely be calling other investors like yourselves. I plan on using some background information such tax delinquencies, liens, and pre-foreclosure to try and weed out the happy investors before I even make the first call but I'd be curious to know what you all think would provide the most value to the seller and differentiate from the masses of calls that just annoy you. Thanks!

Hey Kyle, 

The key to standing out from wholesalers is all in the approach. Like the other guys said.. you can smell em from a mile away. A great way to generate direct to seller leads that you can get a traceable ROI is through direct mail. The key is differentiating yourself from all the mass marketing list blasters, which isnt all that difficult. A brief personalized approach with a quality mail piece (not just a postcard) can hardly be offensive to a motivated seller.

Another critical factor is your lead quality. Take some time to get local, high quality distress lists. Too many folks are just pulling massive equity lists and just blasting them hoping for a .02% response. Don't play their game, make your own.

 

@Tucker Merrihew     you want to get an App like Tucker Merrihew has its a driving for dollars type app.. very targeted and highly effective from what others tell me..  check it out.. 

 Yeah agreed that app can easily help get some quality d4d leads in your database. If you're looking for a lead manager that can also scrub for undeliverables, identify vacancies and absentees, stack leads, AND fulfill direct mail, you gotta check out BP InvestorHub. Game changer for many who have used it so far.

http://biggerpockets.com/leadmanagement