Aside from having an access to a huge number of motivated home sellers, one of the essentials of establishing a successful real estate wholesaling business is building a strong buyer’s list. A long list of people waiting to buy the property you have placed under contract provides great convenience for a real estate investor like you. It helps you to wholesale houses faster, which will enable you to find more lucrative deals.

You might be surprised to find out that you can start building a buyers list even before you have a property to place under contract. In fact, some wholesalers make it a point to find an end buyer first before they start looking for a property to wholesale.

Creating a strong buyers list is not exactly rocket science. It is quite simple, actually. To give you an idea, here are the things that you should do to find potential buyers for your real estate wholesaling business:

Run an ad either in the local paper or online. Even if you don’t have a house to sell yet, tell your target “audience” that you’re looking to sell a handyman special or a fixer upper home. The responses you’ll get will mostly come from rehabbers, contractors, aspiring landlords, and real estate investing beginners. Be sure to identify the type of properties they are looking for, their price range, and in which real estate market they are actively investing in. Also, don’t forget to list down the names of your respondents and their basic contact information.

Call ads. Aside from running ads, you should also call “we buy houses” ads since most of the people who have put out these marketing pitches are wholesaling properties and are looking for wholesale deals themselves. Just like what you have done to those who responded to your ads, you should get their contact information and identify the type of properties they want and the amount of money they are willing to pay for these properties.

Attend REIA meetings. Real estate investing association meetings are the perfect place to find buyers and potential joint venture partners. When participating in such meetings, make it a point to talk to you real estate colleagues and establish good relationships with them. By networking with your fellow real estate investors, you can easily obtain information on the properties that they like and don’t like.

In the next part of the article, we will further discuss how to build a buyers list when wholesaling real estate. Stay tuned for the final part of the series, which will be posted soon.

In the first part of the series, we have discussed why it is important to pre-screen your leads when wholesaling properties. We have also learned the first two questions that a wholesaler should ask to a potential seller. In this part, we will discuss the remaining information that you should obtain to determine if a wholesale deal is worth pursuing or not.

3. The debt on the property.

Before you agree to place a property under contract, you should determine the amount of money owed by the seller on his home. You should also identify the composition of the debt, whether the loan is a first or a second mortgage. By knowing the seller’s asking price and the debt on his home, you can determine how profitable the property can be. Just keep in mind, though, that the figures provided by the home seller are just his own perception on how much his property is worth. You will still need to observe due diligence and verify this information before you pursue a wholesale deal with a particular home seller.

4. The repairs on the property.

Aside from the amount of money owned by the seller on the property, it is also important to determine if the house in question requires major repairs or not. In the real estate wholesaling business, or any other real estate investing niche for that matter, it is a must to identify the cost of repairs on a house as it can measure the profitability and marketability of an investment property. For this reason, you will need to determine this vital piece of information when pre-screening your leads.

Bear in mind that you haven’t personally visited the house at this point in time as you are still pre-screening your leads so will have to rely on the answers provided by the seller. However, most sellers will make it appear that their properties are in much better condition than they actually are. To obtain the information you require, you can structure your wording or ask the seller specific questions about the property, such as when was the last time that the electrical system was updated or what is the current status of the toilet and bathrooms, instead of asking if the house needs to be repaired or not.

5. The expected cost of the property after it has been repaired.

Identifying a house’s after repair value, or the expected value of the property after all the necessary renovations have been completed, is also vital to your real estate wholesaling business. Aside from helping you separate a good deal from a dud, it also enables you to gauge property’s capability to attract potential buyers.

Like what was mentioned earlier, the information that will be given to you by the seller, especially those concerning the property’s ARV and the cost of repairs, are still unverified. You will still need to confirm the data when you begin the process of wholesaling properties.

After testing various marketing strategies, you now have steady streams of leads pouring into your inbox. You are now ready to go out and talk to home sellers who may provide you with the opportunity to close a winning deal. But before you start the process of wholesaling real estate, it is important that you evaluate and pre-screen your leads first.

Even if you have a good marketing strategy that provides you with dozens of leads everyday, it wouldn’t do you any good if you don’t know how to identify the ones that you should pursue. But if you know how to pre-screen your leads, it would be much easier for you to separate good deals from bad ones. This will help you avoid wasting your time and effort on a wholesale deal that isn’t capable of bringing you huge returns on investments.

When having the initial conversation with a seller, most wholesalers use a lead interview sheet, wherein the basic data about the seller and his (or her) property is listed. To give you an idea, here’s the common information obtained by a real estate investor from a potential seller when wholesaling properties.

1. The seller’s motivation to sell.

In the real estate wholesaling business, it is important to determine a homeowner’s reason for selling his property. Although this piece of information won’t likely affect the profitability of a deal, it can help you measure the readiness and the willingness of a seller to sell his home, which is why you need to closely pay attention to the latter’s response when you ask him why he is interested in selling at a particular time.

In most cases, motivated sellers will easily provide you with an answer should you ask them why they are interested in selling. On the other hand, sellers who will question your need to know such information are likely to have little to no motivation to sell at all.

2. The seller’s asking price.

Once you have identified a seller’s motivation to sell, the next thing you need to do is to identify how much he is willing to sell his property for. This can give you a good basis for your initial offer should you decide to buy the house. And if you are quite familiar with the neighborhood where the property in question is located, you can determine if the deal is worth pursuing or not based on the seller’s asking price alone.

In the next part of this article, we will explore the additional information that you should obtain from a potential seller when wholesaling real estate. So if you want to learn more, stay tuned for Part 2 of the series, which will be posted soon.

As you may know, there are many types of properties that you can wholesale. Aside from conventional single-family homes, you can also place properties such as multifamily homes (or apartment buildings) and foreclosures under contract. But if you’re looking for maximum profits, you should try wholesaling real estate owned properties, or REOs.

Also known as bank owned homes, REOs are properties repossessed by banks and lenders from homeowners who have defaulted on their mortgages. These houses have undergone the foreclosure process but weren’t sold at foreclosure auctions.

While it is true that the current market condition has brought about a multitude of motivated home sellers, most of the properties being sold by these people don’t have any equity. This is the reason why many real estate investors have taken interest in investing in REOs. In addition, bank owned homes are selling for very low prices as lenders that own them are determined to sell these houses quickly since they are losing money just by having these properties listed on their books.

Wholesaling real estate owned properties is something that you should consider because of the numerous benefits that you can receive as a real estate investor. Listed below are some of them:

1. One of the biggest advantages of wholesaling properties owned by banks and lenders is that you don’t have to spend a great deal of time finding a nice house to place under contract. It is no secret that because of the economic crisis, many homeowners have lost their homes to foreclosures and many of these houses have become REO properties. This means that you don’t have to look far and wide just to obtain a lead to lucrative REO wholesale deals.
2. In certain cases, wholesalers have to deal with the eviction process. With bank owned homes, however, a real estate investor doesn’t have to personally ask an overstaying tenant to leave the property since it is the bank’s responsibility to evict the house’s previous owner.
3. Property inspection is allowed as far as wholesaling real estate owned properties is concerned. This enables you to determine if the house you want to place under contract is indeed capable of attracting a good deal.
4. Wholesaling properties owned by banks don’t require too much repair work. This will make it easier for you to find an end buyer for the contract.

Before you try wholesaling real estate owned homes, however, it would be wise to arm yourself with proper knowledge about these profitable investment properties. By having adequate information about the type of real estate that you want to invest in, you can have the assurance that all of your investments would pay off.

According to real estate veterans, who you know in the housing business can significantly affect the way you generate income, which is why networking is one of the industry’s most popular marketing methods. By knowing exactly who to approach when you’ve got a good deal in your hands, it would be easier for you to make money by wholesaling properties. And although building strong relationships with your colleagues in the real estate investing business can be a time-consuming process, it can provide you with huge benefits that help bring your career to the next level.

In the first part of this article, we have discussed some valuable pointers on network marketing. Here are some additional hints and tips that you can use to ensure networking success:

• Consider joining real estate investing associations (REIA) or clubs. These organizations provide the “proper stage” where you can start your networking activities. As you may know, you will find dozens and dozens of wholesalers and real estate investors who share the same passion in life with you at REIAs. This will give you the perfect opportunity to meet potential partners, mentors, and buyers.

• It is also a great idea to build relationships with other people whose professions may or may not be directly related to real estate investing. Aside from your colleagues in the real estate wholesaling business, it would be wise to network with appraisers, title companies, hard money and private money lenders, and settlement attorneys.

• Let people know what you can do for them. Whether you are building relationships with buyers, sellers, your fellow investors, or lenders, always remember that most individuals want to know why they should talk to you. In the business of real estate wholesaling (or any other real estate investing niche for that matter), you’ll get what you want by helping others get what they want.

• Just like a plant that needs water and sunlight, real estate relationships should be nurtured and taken care of. Just because you’ve got what you want from a person, it doesn’t mean that you should stop being friends with him. You should follow up on your relationships on a regular basis to maintain rapport and a strong level of trust between you and the members of your network.

Network marketing is indeed a great way to find valuable allies when wholesaling real estate. Not only it allows you to promote your business without spending a dime, it also enables you to meet the individuals who can make a positive impact on your career as a wholesaler. So what are you waiting for? Start talking and build meaningful relationships with people who matters in the real estate business.

When wholesaling real estate, it is important to have a huge arsenal of marketing strategies that can help you find leads to great wholesale deals. As you may know, real estate investing won’t survive without marketing. If you don’t know how to promote your business, then it is impossible for an investor like you to generate huge profits.

Aside from the using bandit signs, which was discussed earlier, one of the most common marketing methods used by those who wholesale properties is network marketing. Networking allows real estate investors, particularly the beginners, to get broader exposure that could lead to more money-making opportunities and potential clients. It is also the ideal marketing strategy for those who are on a tight budget and can’t afford to spend thousands of dollars on extensive marketing campaigns but has a lot of time on their hands. By investing only a few hours of your time in building relationships with people in the real estate business, you’ll get the exposure you need. You might also learn new ideas and have the opportunity to expand your knowledge as a real estate investor.

One of the reasons why networking is an effective marketing strategy is because it allows people you deal with to associate your business with a face and a personality. It is no secret that investors, as well as home sellers and buyers, prefer to work with people they know and trust. By building a good relationship with these people, you can establish a level of trust, which, in turn will make it easier for you to wholesale houses.

Here are some pointers about networking that you should need to consider:

• Always remember that your primary goal when using this particular marketing strategy is to promote your real estate wholesaling business and to raise people’s awareness on the services you offer as an investor.
• To build trust with your target market, show sincere interest in people. Take your time to know who they are, what they do, and what interests them. Although it could take a little while for them to open up to you, all the time and effort you have invested into knowing them can help you in more ways than you can imagine.
• Identify the people who can provide utmost benefit to your business. Find out how they can help you. According to veterans in the business of wholesaling properties, what and who you know matter in this business, which is why you need to build strong relationships with those who can be a good influence on you.

Stay tuned for the second part of this article for more pointers on networking and wholesaling real estate.

What motivates a homeowner to sell his home? This is one of the questions that you should find an answer to when wholesaling real estate. It is because having a clear grasp on this vital information can make your job as wholesaler much easier. By knowing what compels a homeowner to get rid of his property, it would be easier for you to make an offer that will easily spur the interest of a home seller.

In the first part of this article, we have discussed how death, job transfers, and changes in one’s lifestyle affect homeowners’ decision to sell their properties. Picking up where we left off, we will now discuss the other factors that motivate home sellers.

Financial difficulties. Huge debts and foreclosure notices, as well as unpaid mortgages, property taxes, and utility bills may compel a homeowner to sell his property. Because he doesn’t want to aggravate his financial problems, the only option left for him is to sell his house to mitigate his losses. Among other reasons, financial problems are probably the biggest driving force that compels a person to sell his or her home.

Divorce. Undergoing divorce is somewhat similar to experiencing the death of a relative. When married couples separate, nobody usually wants to have the burden of looking after a house that was once shared with a former loved one, especially if these couples don’t have kids. It is also awkward, and not to mention expensive, for one person to live in a house that can fit a huge family. This is the reason why those who have recently undergone divorce are among the best people to approach when looking for sellers and wholesaling properties.

Home is too small. One of the most common reasons why homeowners are enlisting the help of wholesalers is that they are no longer happy with their current home. First-time home buyers usually outgrew their starter homes, which is why many of them are willing to sell their properties to find a better and a bigger house for their growing family.

You might be surprised to find out that most motivated home sellers are willing to divulge such information when asked why they are interested in selling at a particular time. Those who will respond by questioning why you need to know such a detail probably have little or no motivation to sell. By asking what motivates a person to get rid of his or her property, you can gouge a seller’s readiness to enter into a wholesale deal, thus, making the process of wholesaling real estate much easier for you.

Aside from having a strong buyer’s list, one of the essentials of wholesaling properties is building a seller’s list. Having access to a huge number of sellers can bring your business to the next level since it would be easier for you to get leads to lucrative real estate deals. However, you shouldn’t make an offer to the first seller that responds to your marketing pitch. You still have to pre-screen and evaluate your leads and determine if the seller is indeed motivated to sell his property.

When pre-screening your leads to wholesale deals, it is important to determine what compels a seller to get rid of his property. By identifying his No. 1 motivation, it would be easier for you to structure an offer that the former would easily accept. And although a seller’s answer will not make or break a deal, it can help you determine if the deal is worth pursuing or not.

There are numerous reasons that motivate a seller to sell. Listed below are some of the telltale signs that you should watch out for when wholesaling real estate and talking to homeowners:

Death. The loss of a loved one can be a painful experience, which is why many families try to get over it by moving into a new property to start anew. There are also some who don’t want to be responsible for the property that they have inherited from a deceased family member. For this reason, these people will response to the marketing pitches of those who wholesale homes and invest in probates.

Job transfer. Relocating to a new city because of new work commitments is also a prime factor that motivates homeowners to sell homes. Sellers who are undergoing such a phase are usually in a rush to get rid of their properties because of time constraints, which means that they are more open to the idea of selling their houses at discounted prices.

Change in lifestyle. In a person’s life, there will come a time that he (or she) will become tired of his current lifestyle and would prefer to travel or pursue a new way of living elsewhere. For this reason, such people lose interest in homeownership and may allow wholesalers to have their properties placed under contract.

Motivated home sellers have various reasons for selling properties. If you want to know the rest of them, stay tuned for part 2 of this article.

Everybody knows how effective bandit signs can be when it comes to wholesale lead generation. But before you set up these nifty marketing tools, it is important to take certain things into consideration to ensure the success of your marketing strategy.

In the second part of this article, we’ve discussed the information that you should put into your bandit signs. We have also learned how to create a message that will compel your target market to take action and discovered why it would be wise to avoid putting your own telephone number in your bandit signs.

Picking up where Part 2 has left off, this article will discuss the third and final factor that you should consider when using bandit signs to find wholesale deals.

3.  Location.

Once you have written all the necessary information on your bandit signs, the next thing that you need to do is to determine where to put your signs. Like when wholesaling properties, choosing the location is important because it can affect the amount of exposure your signs will get. Below are some of the ideal locations for your bandit signs:

First stop: telephone poles. Telephone poles are a great place for your signs and can give you lots of leads when wholesaling real estate. According to real estate veterans, you should put signs on poles along busy intersections because drivers would have a lot of time to notice and read your signs since they are required to wait on a traffic light. Telephone poles on busy parking lots are great locations for your signs, too, since a lot of people come and go at these areas.

If you have properties other than your own home, setting up a bandit sign in these places is also a great idea, especially if they are situated along busy streets or high-traffic areas. It also allows you to let other people know that you are into the business of wholesaling properties. Unlike when posting in telephone poles, you can use bigger signs to attract the attention of potentials home sellers and buyers. However, avoid using signs that are too large or too inconspicuous to avoid problems with the local authorities.

Before you start putting up signs on telephone poles and other similar places, however, always remember to check with the city hall regarding rules on posting bandit signs. It is no secret that there are cities and counties that ban bandit signs so it would do you good to do your homework first before using these marketing tools when wholesaling real estate.

Using bandit signs is one of the most effective but inexpensive ways to find motivated home sellers and potential buyers when wholesaling real estate. This is the reason why many wholesalers are keen on taking advantage of this marketing strategy because it allows them to reach their target market and get responses without having the need to spend a lot of cash.

While it is true that bandit signs can easily attract the attention of your target audience, it doesn’t necessarily mean that they can guarantee that you’ll get the amount of responses that you are expecting.  To help you out, here are the factors that you should consider when creating bandit signs:

1.  The message.

Always keep in mind that the message is the most important part of a bandit sign. It is what compels your target audience to take action. For this reason, you will need to create a message that will easily grab and keep their attention.

Include benefits when creating a message or copy for your bandit signs. As you may know, signs with headlines like “Sell Your House Fast” or “Quick CASH for Your Home” are more likely to grab a potential seller’s attention as compared to signs that simply tells people that you earn money by wholesaling properties. Remember that you have only two lines to convince a buyer or a seller to take action you have to be sure that the message you will write will definitely convince your target audience to pick up the phone and call you.

As for the length of your message, keep it short and simple. People passing by your signs, especially those who are driving their vehicles, do not have a lot of time to stare at and absorb the contents of your signs. Keeping this in mind, you have to be sure that the information you will put in your bandit signs will be easily remembered by your target “audience.”

2.  Telephone number.

Do not forget to include a phone number in your bandit signs so it would be easier for an interested buyer or seller to contact you. Most veterans in the business of wholesaling real estate strongly suggest that you avoid putting your own telephone number. Instead, they recommend using a forwarding service where the number is untraceable. This way, it would be easier for you to screen bona fide home sellers and buyers. You don’t also have to deal with prank calls and other similar problems.

Now that you know what should be written on your bandit signs, next stop is identifying the perfect location for these nifty marketing tools.