How to start wholesaling / finding sellers

Question

I have been researching wholesale real estate for a while now via BP, youtube, blogs, etc. I’m nearly 21 years old and do not have a big budget. I’d like to eventually get into flipping and rentals but felt wholesale was a good starting point. I am ready to start marketing to find motivated sellers, but looking for advice on the best way to do so.

I’m leaning towards direct mail or cold calling, but I feel that cold calling might get better results?

Further, i’m looking for any advice on obtaining lists as well as the beat sites to use for skip tracing.

I’ll take all the advice and help I can get, not only limited to the above! Thank you in advance.

Lydia R. · Answer

@Megan Lowery On a limited budget cols calling is probably going to be your best bet. Also remember that any list you can buy, so can anyone else so be prepared for competition. My advice is to do some driving for dollars(also low cost) and find homes that look distressed or vacant, skiptrace those owners and call them. Also talk to every mailman you see while driving. Tell them you are an investor looking for vacant property in the neighborhood. They always know which houses are empty! Good luck!!

Blaine Alger · Answer

I would suggest cold calling, I think it is the most cost effective way to get ahold of sellers. Direct mail can get expensive, especially if you are just starting out and aren't sending out to super niche list.

In regards to getting list, you can never go wrong with driving for dollars. You will see other properties that your competition won't. Get the app Land Glide ($100/year) it will allow you to tag properties you see and build a list. Then you can export your list into an excel format with all of the relevant info (property address, mailing address, owner name, etc).

For skip tracing, you don't need to get too complicate with it. There are a number of sites that will skip trace your list but there are also free alternatives like true peoples search.  It might not be the most accurate data but it is free and will get you started. Once you get a feel for the game, then you can scale up.

Feel free to reach out! I would love to help any way I can.

-BA

Roberto Rodas · Answer

Definitely going to do this! Thank You!

Lydia R. · Answer

@Roberto Rodas You are welcome! Having bird dogs that bring you leads is invaluable. Dont forget firemen, policemen, bail bondsmen (yep) Uber drivers, city code enforcement officers and landscapers.

Braden C. · Answer

@Roberto Rodas Two weeks isn't very long at all, I try and hit my lists 4-6 times per year.

Roberto Rodas · Answer

Hi Justin,

How long do you wait before sending direct mail? I am just getting started in wholesaling and I am giving myself 2 weeks before sending DM to the properties again.

Justin Reed · Answer

Direct mail. I pull assessor data (with a direct link to RealQuest or DataTree depending on my acquisition criteria) of the type of properties in the areas I want and send ALL the property owners an offer. I scrub the list to remove things like properties with a mortgage, duplicates, etc. and spend a tremendous amount of time on pricing, because although these offers may be a lot less than retail, they are not out of the question. I explain in my offer letter to sellers that I am a serious investor, not and agent/broker, I pay cash, and are prepared to close as soon as x days.

Then I sit back and wait for the motivated sellers to call us. You can of course edit this model to fit how exactly you plan on purchasing and what specific property type you are looking for. Believe me - it works like a charm. That is how I GET THERE FIRST. By the time a deal reaches the MLS or a lead source, someone else has already beat you to it. Also, knocking on doors (aka "driving for dollars") is an outdated way of doing this and honestly isn't worth your time. It's no longer about possible subject to leads - we now have DATA and computers and direct mail to get there first.

Data quality is important so I would avoid ListSource or other lower quality data providers. Your time is more valuable than cold calling.

Please feel free to reach out to me if you have any additional questions - I would love to help!

Roberto Rodas · Answer

@Lydia T.

Hi Lydia,

Talking to a mailman is genius. I never thought of this thank you!

Megan Lowery · Answer

@Lydia T. Okay! Thanks so much!

Antoine Martel · Answer

Cold calling is a great way and I have been using listsource.com to buy the list

How to start wholesaling / finding sellers

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