If you are interested in taking your real estate wholesale business to the next level, it is important to master the following 4 foundational blocks of a successful wholesaler
Block 1 – Marketing
As a Wholesaler you need to learn how to market for properties and it should be your number one priority.
The marketing campaigns can be divided in two categories Free and Paid Marketing
For Free we recommend to post daily in Craigslist at least twice a day, call for sale by owners, and call people who has a house for rent. Also you can drive for dollars and find vacant & distresses properties, then ask the neighbors if they know how to find the owner.
For paid marketing, you can start with low cost strategies such as bandit signs, and flyers.
Also, you can use direct marketing techniques such as such as sending postcards, formal letters, yellow letters, and onlince marketing such as pay per click, and remarketing.
For already established companies they can use radio, tv and billboards to advertise their services
Block 2 – Analyze deals
You need to know how to evaluate the property from two different angles
The first one is how much the house will cost when is renovated, this is estimating the After Repair Value.
The most effective way to find the ARV is to look properties within the same subdividion , if you cannot find anything go to half a mile to a mile radious, similar sqft, number of bath bedrooms. Then look at the pictures of properties, to determine if the kitchen and bathrooms are updated. Also find at least 3 comparable to estimate the value of the house.
The second estimation is the amount of work the house will need, yes you need to estimate repairs. This is not as complicated as it sounds but I think it is important if you want to be more effective with your buyers or if you are planning to do rehabs in the future.
If you are just starting, you don’t have to know the cost of repairs, but at least you need to collect information from sellers and when you do a visual inspection of the house and write down all the that is needed to fix the property. This will help when communicating with potential buyers.
Block 3 – Negotiating with sellers
When you go to the appointment you have to understand people make business with others they like, and trust, so your goal is to build rapport.
Rapport you can build it by asking questions, listening to what they say, and using that information to ask more questions, so you can find something you can have in common.
Things you can find in common with sellers is by using friends and family, occupation/job, and recreation/fun activities they do that are similar to yours.
Once you build rapport, then you can start talking about the property and pricing, you need to be prepared and know before hand what questions to ask and how to answer their objections.
This can be accomplished with practice and time, but is essential to get a house under contract.
Bock 4 – Build a buyers list
The best and fastest way to sell your houses is to have a great buyers list.
I have sold properties in just a few hours from getting the property under contract.
You don’t need to have a huge list, just a handful of investors that are buying houses in a regular basis. You can find them by posting ads in craigslist, putting bandit signs, and going to local real estate investment clubs.
The best way to cultivate a great relationship with them is first understand , what areas they buy, what is their buying criteria, and how fast can they close.
So when you have a property, just by making a few calls you can get it sold
By Mastering those 4 building blocks of a successful wholesaler you can take your business to the next level
Happy investing