The primary responsibility for finding buyers for wholesale properties you have under contract rests with YOU, not someone else. The vast majority of the time, the buyer of a particular investment property is going to be a LOCAL buyer.
Even though we do market the property nationally, such as submitting it to our large and growing buyer’s list, putting up web sites, etc., it should all be considered secondary to the things you do locally to find a buyer.
Keep in mind that wholesaling is a numbers game. The better a deal is, the higher the likelihood of selling it. Also, the more marketing you do, the more likely it is to sell. However, bear in mind that you’re NOT going to sell every house you put under contract. You might sell 1 out of 3, maybe 1 out of 10, maybe even only 1 out of 20. A lot of it depends on your market conditions, how good the deals you get really are, your personal sales skills, and how much effort you put into it.
Nobody should come into real estate investing, especially wholesaling, with the misconception that this is a business that requires very little effort, and that you can get rich working 30 minutes per week. It simply doesn’t work that way. You really should treat this like a part-time job at the very least, and expect to put in 5 hours per week, and make offers on 100 potential properties per month if you really want to wholesale a house every month or two.
With that said, what do we expect of you in terms of finding buyers for the properties that you find and put under contract? Well, at a minimum, here are the things I think you, the wholesaler, should be doing for each and every property you have under contract:
- Put a large, ugly sign in the yard with your phone number or recorded info line (large Magic Marker on yellow coroplast signs work great!)
- Put up directional signs leading to the house (arrows pointing to the house from major arterial streets within 1 mile. Can buy these online or at hardware/home improvement stores).
- Plaster the house for sale on Craigslist.com in your city, every 48-72 hours.
- List the house for sale on Zillow.com. Search for the house, then follow their steps for saying it’s for sale.
- Visit your local real estate investor group and pitch the property to them.
- Let your local Dream Team members know about the property.
- If you have LOCAL web sites where it is popular for people to look for houses for sale, post the property there.
- Consider distributing flyer’s door to door in the neighborhood surrounding the house announcing that it is for sale. People know people that are like them, have similar tastes, and might want to live in a similar type of neighborhood as they do. Check local laws about flyer delivery.
- Consider putting the house in your local “throw away” paper. Something similar to Thrifty Nickel or Penny Saver. It costs me $9 per week to put a small classified ad in the local American Classifieds around here. Say something to the effect of “highly motivated seller”, “must sell”, “handyman special”, “$20k instant equity” – whatever the situation on the property warrants. These type of headlines get fair response for this type of media.
I’m sure that I’ll think of additional things that everybody should do on this “minimum” list, but this is off the top of my head for right now. Also, keep in mind that everybody that contacts you off your efforts to sell THIS house should go on your own buyer’s list, because even if this house doesn’t fit their needs, a future property might. And, as many marketing gurus have said, the power truly is in the list.