5 PLACES TO FIND REAL ESTATE WHOLESALE DEALS
In order to be successful with WHOLESALING real estate you must find deals that no-one else has.
Which means look where no-one else is looking.
Many new investors have been told to focus on foreclosures and pre foreclosures.
While there are foreclosure deals out there, they is also a huge amount of competition.
When you spend all your time looking at the same deals that everyone else is, you are missing out on so many other opportunities in your market. This is why most seasoned investors want to buy off market properties.
Here are 5 strategies to finding wholesale deals.
FSBO Signs. (driving for dollars) When I was doing transactional real estate, I would always keep my eye open for fsbo properties. I would also ask my friends to send me pictures of For Sale By Owner signs (yard signs) and the addresses. They didn’t always do it but when they did I could usually get a listing agreement out of it. The truth is these homeowners are ready to sell their home and most times they don’t know how to make that possible. It is critical that before attempting to make an offer you understand their motivation for selling. Once you discover what their motivation is you will know what kind of deal you have.
Vacant Properties. (driving for dollars, and using list sources) There is a good chance you are already driving around each day, next time you are on your way home from lunch take an alternative route. Taking an alternative route may add thirty minutes but by doing this you are likely to come across at least a handful of vacant properties. Look for yards that are overgrown, or mail falling out the mailbox. To capture these properties you need to do a little legwork. After writing down the address take a trip to tax office or you can use websites like fastpeoplesearch.com and find out who the owner is. Once you have a name and address reach out to the owner by letter, or by the phone. For every ten vacant properties you may only talk to one homeowner who is willing to sell. The good news is that when you do find that homeowner that is willing to sell, it will be worth it.
Network. Being top of mind is critical when it comes to real estate, because opportunity doesn’t knock just once, it just knocks once on your door before going to the next person. If you want more deal flow, its best to be known as the go to person when it comes to real estate.
This means showing up at local networking meetings even when you’re tired and you don’t want go.
It means driving to the local REIA groups after a long day of work. It means giving up some of your weekends for a mastermind meet up.
It means building your team and talking to insurance companies, mortgage brokers, builders, accountants and contractors in an attempt to generate business.
All it takes is one or two solid contacts to greatly improve the number of leads that come your way.
The more time you spend networking the better your business will be.
Craigslist. (Hunting Tired Landlords) Instead of looking at properties that are for sale.
Your focus should be on landlords that are looking to rent the property. There are many landlords who have grown tired of trying to find tenants and would strongly consider selling if the right offer came along.
Just like every other way to find wholesale deals you need to understand contacting landlords is 100% a numbers game. If you get a wholesale deal the first time you call one, you’re very lucky! In my opinion you can probably speak to 200 different landlords before one agrees to sell. If you don’t get an immediate response you MUST KEEP reaching out every week/biweekly for months. With enough persistence you may catch a tired landlord at the right time and you’ll be able to pick up a huge bargain of a deal!
Divorce/Probate Attorney. The real estate business is a relationship business and one of the most important contacts you should make if you want to grow your wholesale business is a busy divorce attorney. During a divorce dividing up the property is often the biggest issue.
If property ownership cannot be settled the parties are left with doing a quick sale. Many times the parties will accept a quick, cash closing rather than wait for a traditional offer to come in. Having a good relationship with a divorce attorney can pass your name along as a reputable local investor and if they call you can start the negotiating process.
The same is true with a Probate Attorney, when someone passes and the family members don’t want to keep or manage the home, they may be willing to just sell the property to the first buyer.
Just by focusing on each one of these tasks for an hour a week you’ll begin to close more wholesale deals. If you start by focusing on just these five options for a few hours a day after a couple of weeks you will see a huge spike in your pipeline.
What is your best tip for finding deals?
Which one of the above have you tried before?
Have you ever thought about becoming a license real estate agent? Check out this article here.