If you are a real estate investor or agent who works with investors then this article was written for you.
Real Estate Wholesaling
How It Works
If you have a short term memory then make sure you implant permanently what I am about to tell you. The way wholesaling works (in fact, the only way it can work) so that everybody wins, is that you, as the wholesaler (Party B) must find your buyers first! That’s right. You first market, advertise, capture and nurture a growing list of people who are interested in finding great real estate deals, whether they be flips or rentals, and have the money but don’t have the time to do it. Then and only then do you go out and find great real estate deals and get them under contract. Nothing could be more damaging to your reputation than getting properties under contract than not being able to sell the contract or follow through on the purchase of the property. Those who teach that it is easy to get out of a contract if you can’t sell it (so it is not something to be overly concerned about), are damaging to the world of investing and wholesaling in particular. This implies a lack of proper execution of the principles and if you have to break a contract then you violate the principle of “Everybody Wins”. In this case the sellers (Party A) lose. And you lose too because you will develop a reputation of someone NOT to deal with. Don’t fall into this trap. Follow the easy, simple processes that I teach you here and you will profit so that everybody wins! All you are doing is filling orders. Part of nurturing your buyer clients is asking them questions, listening to their answers and understanding what types of properties they want. Then you go out and find those properties, get them under contract and sell the contract to your buyer.
How Do I Find Buyers for my Wholesale Deals?
Marketing and Advertising! That’s right. You market yourself as the Go To guy or girl in your area who knows how to sniff out those awesome real estate deals. You can easily market yourself by creating an impressive image on Facebook, LinkedIn, Google+, Twitter, and even more social media venues. You should also create your own website. All of this is simple. It may not be easy because it does take time, but it is simple.
You advertise by sending messages through LinkedIn, and posting messages on Facebook, to those who are following you, showing them the deals you have done and promote the one(s) you currently have. You can also use Postlets to advertise your current deals. Furthermore, you can identify, through public records, those who are regularly buying properties in your area. You can send them, through the US mail, your latest deals and entice them to sign up with you as their provider of great real estate deals. Of course you can use Craigslist, Bask Page, bulletin boards in your church or grocery store, and yard signs. Here is a rundown of available advertising mediums:
Craig’s list – Bar none. This is one of the best ways to reach your marketplace. It’s free and has a wide audience. They even have a tutorial for you to learn from.
FB, Twitter, LinkedIn – Use your network(s) in Social Media to get the word out. Be careful how you use social media. There are rules of etiquette you must first learn for each one. The number one taboo is spamming your network. Never abuse the privilege of social media. If you do you will be shunned, un-friended, un-liked, un-connected and unsuccessful!
Church – Churches usually have weekly bulletins in which you can advertise your vacancies. This works well for large congregations but I would use it in small churches as well. Look in your church’s current bulletin and there should be instructions or at least contact information that you can use to get started.
Grocery store – Usually have a bulletin board where you can pin a flyer with tear off phone number tabs. You need to check this regularly. Sometimes they disappear. Sometimes other people will post their notice right over top of yours. If you’re really lucky all of your number tabs will be gone!
Restaurants – They often will let you put a stack of flyers or business cards near the checkout. The next time you’re dining at one of your local favorite restaurants speak to the owner or manager. Someone with the authority to act is always on duty at a restaurant. Please note that there are some other great marketing and advertising opportunities here. For example, ask the proprietor if he/she will offer a discount or free meal coupon (get several) for you to use as a reward to give to your good tenants who refer other good tenants to you. Use your imagination!
Local publications – Penny Saver, Green sheet, they’re in every community and are very inexpensive. Unlike large publications like your big city paper, I have had a lot of success with these types of publications. Call and ask for their rules and regulations. Learn the rules of their advertising game and you will master the game. Some ads you will place for one to two weeks. Some you will place for a year. You will also learn where in the publication to place your ads, how big, how small, special features, etc. Hint – Any time you can have your ad placed in a box you will get better results!
Pick up a copy of the e-Book “Wholesaling So Every Body Wins”. Available at MyInvestmentServices.com.
For More information please visit MyInvestmentServices.com, call 1-800-931-2605 or email Gary@WinRealtyAdvisors.com
Written by Gary Wilson, June 23, 2014
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