Wholesale Property Marketing
I was told the other day by a friend of mine, “Wholesaling is difficult.” I gave a blank stare back with thoughts running through my head as to why would they would think that. They stated it was hard to find a great deal. Still taken aback from their comment, I realized it was not the first time I had heard it. I’d like to believe that it must be easy for me because “I am the Queen of Wholesale,” but in reality it just goes back to the basics.
I have taught a lot of students the strategy of wholesaling properties throughout my 14 years as a real estate trainer, and I have given the same message to each class I teach. In order to purchase a great deal, you must have a motivated seller. Anyone can put a property under contract, but it doesn’t mean it’s a deal. It has been my experience that if you can’t sell your wholesale contract, then one or two things are probably a problem. One, you have not marketed the property correctly or two, you contracted the property for too much. If you don’t have enough profit in the deal for your new buyer, they will not be interested in buying your contract.
So, how do you find a great deal at the right price? Find a motivated seller, or better yet, let them find you. As a full time real estate investor, I must find deals on a regular and consistent basis. I need to find a source of real property leads where no one else is looking. Once I have targeted possible motivated sellers, I spend time marketing, marketing, and marketing to that demographic. I find that a seller tends to be much more motivated when they call me.
Once the seller calls you, then just run the numbers like you are taught in class. Don’t over think this part, and stay true to running the numbers. You have been taught in class that everything is based on the numbers. You cannot make an emotional decision; you cannot “will” the numbers to work for you. You have to put them into our time tested formula. While many sellers will not take your offer, you will find that the ones who are motivated enough will.
Not everyone will like your offer. So what? If the seller wants more than what you can offer, refer them to your realtor. Do not overpay for a property! If you overpay for a property, then you will be the motivated seller down the road.
The key to successfully finding properties is to market, market, and then market more.
10 Tips to Help Sellers Find You
- Advertising (REI Blackbook, Craig’s list, local paper)
- Bandit Signs
- Building your power team
- Contacting Expired Listings
- Direct Mail
- Driving for Dollars
- Networking (Who do you know? Who do they know?)
- Social Media
Rich Dad Education Elite Trainer