I am probably on 20 different local real estate wholesalers email list and it seems like the same thing happens over and over again.
Wholesaler A sends an email blast with a property that is advertised as the next greatest deal. Usually it is beside train tracks and on a busy street and compared to non-location problems. Fifteen minutes later wholesalers B-F send me a similar email with the same property 5-10k added to the price and a new logo on the top of their email.
That business model sucks! To be honest I don’t even bother to open most of the emails I get from these people anymore.
Here is how I would do things if I was a full-time wholesaler.
- Find 2 to 3 large buyers in a hot investment area within 30 minutes from where I live/work. I will give some ideas on how I would do this at the end of the post.
- Ask them about their favorite areas, items that area deal breakers and any other feedback they have.
- Now it is time to pursue that exact type of product: MLS, mailers, other wholesalers.
- Every time you get a deal call them directly. If they say no, ask them what they didn’t like about the property and what numbers the deal would work at for them. Remember it is important to not be too greedy, if you can find deals that the investor can make money at they will be back again and again.
I think sometimes new wholesalers forget that the investor needs to make a profit if they are going to stay in business. The guys I know that are most successful at it, almost never have to make more than three phone calls to unload a deal. They know exactly what every buyer on their list is looking for.
Now if I needed to find a list of buyers there are three things that are pretty easy to do:
- If you have MLS access, which you should if you are serious about real estate. Do an MLS search in cities you are thinking of targeting for Closed Sales that had Financing Type: Cash over the last 3 minutes. Sort it by price and check who took title on each one. If you see common names those are probably active investors in the area. Find their phone number (it’s not hard) or mail them if you can’t.
- Trustee sale buyers have loads of cash and are always hungry for deals. Hang out and approach the players after.
- Go to your local Real Estate club and do some old fashioned networking.
So to sum it up: rather than passing Cinderella’s slipper around to many possible princesses why not find your princess up front measure her feet and go find her the perfect slipper?