Unique Selling Proposition for Wholesalers?

Question

I'm a beginning wholesaler working on my first couple deals.  It seems like there are many people jumping into this business and it's challenging to find sellers who haven't already been contacted by at least a few other wholesalers.  I'm not here to complain about that - I'm here to see if there is a way to do things better.

Is it possible for wholesalers to have a unique selling proposition?  For the most part we all send roughly the same mailings/marketing, offer the same benefits (get rid of your problem property, quick closing puts fast cash in your pocket, etc), and from start to finish the process is roughly the same.  Good branding can help and I've seen a few wholesalers do this, but it's not a replacement for a USP when building a solid, sustainable business.

I'm not questioning that it's possible to get properties by just being another wholesaler and doing things the way everyone else does...we all know it is.  But there's a difference between finding a way to put cash in your pocket and creating a sustainable, scalable, "real" business that will last and let you be a business owner, not just have a glorified job.

Would love to hear everyone's thoughts on this!  Happy holidays!

Brent Hill · Answer

@Thomas Strock  Do what other wholesalers aren't doing?  It is the same as in most other professions where you are dealing with a readily available service/product.  It is a numbers game and being consistent day in and day out.  There are tons of licensed agents too but most newly licensed agents don't last long and they go away shortly.  Brokers depend on this new blood to pay those monthly fees.

Call 10 people every day and tell them what you do. Follow up with them monthly.  Network at every REI event and actually put them in your contact list and stay in touch with them.  Call FSBO every day.  Drive for dollars every week.  Follow up with every prospect every month without fail.  Go to your local county office and figure out how to get data on unlawful detainers, notice of defaults, divorces, death certificates, Quit claim deeds, back taxes of 2 years or more and code violations...start building those lists and mail to them consistently.

If lawful, put out at least 25 bandit signs every week.  Create 5 craigslist accounts and post 5 ads to 3 different categories on one day, then a new 5 ads the next day...renew them every 48 hours so you will always have at least 30 ads on craigslist..I could go on...there isnt much magic...just keep pressing forward, talking to people, learning and don't be afraid of failing or making a mistake or be afraid of the naysayers...hang around and get to know the best wholesalers in your area...talk to them and try to emulate what they do...they should get you started.

Jay Hinrichs · Answer

@Eric F.  when at all possible its a belly to belly business.

prior to pre foreclosures becoming Illegal here in Oregon and Washington.. well highly restricted let me put it that way.  this is what I did

I had 3 roving teams  Man women each team... we sent no letters .... we door knocked EVER NOD in our metro area  EVERY ONE...

In our market if your in foreclosure back then you got no less than 100 to 150 letters .. So could we have gotten a hit or two yes... but I was the number one buyer in my 2 million metro for years...

We beat all the mail out guys to the deal.... if the folks were a little harder to close my teams would call me in for the close.

some things I did to put them over the edge. Now also I only closed on deals I never assigned or wholesaled.. as that can be bad in our market from legality wise.. even though I am a licensed broker I just made that disclosure on my P and Sale agreement.. as long as you disclose your good. but NET listing type assignment deals can come back  to haunt you.

1. showed up with a Cashiers check in their name.. for the amount of equity I was willing to give them.

2. if it was a tax sale and they had no debt and I wanted to pay say 150k for it.. I showed up with a 150,000 dollar cashiers check made out to them...

3. I can really close in one day... most can't I can buy without title insurance most cant so I beat so many of my competition that needed to use hardmoney or was trying to flip

We did not start to door knock until 5 to 7 days before they were going to lose it... Now you talk motivated and cut down on competition .. there were far and few people that could compete with us on this level.

Account Closed · Answer

I have had great success in appealing to the sellers emotions of solving a problem for them. As an example with I was working pre-foreclosures in Missouri, my message was very personal in nature, with a picture of my family. NOT the typical message everybody else gives: I'll buy your house for quick cash and close quickly. I do the same thing now that I'm in Florida and marketing to vacant house owners, out of state owners, pre-tax deed auction, probate, etc. I am getting a lot better than a typical 1% response for direct mail. When I was sending out 1 mail piece to preforeclosure owners in Missouri, I got an average of 14% call from my only 1 letter.

Eric F. · Answer

Here is a good unique selling proposition. Show the seller a few deals you have done. Most people send out mail once, never do a deal, and quit. If you can show the seller "Here are 5 deals I BOUGHT last year" with pictures of screwed up houses, then you have already separated yourself from the majority of your competition.

Here is what makes you beat other people if you all go to the same house.

A personal connection with the seller. They have to trust you. A lot of wholesalers either don't understand or believe in what they are doing and they come off dishonest or scammers. Trust is number 1!

Treat the seller with respect. Never insult their house to try to beat down the price. They know Rover peed all over the carpet and scratched up all the doors. If you call out how disgusting their house is you are calling them disgusting. Remember that. They know Rover peed on the floor, you don't need to tell them.

FOLLOW UP. Call a day or two after your appointment. ALWAYS send an offer.

These three things will help tremendously.

Brent Hill · Answer

@Thomas Strock  Everyone has said it but you are looking for motivation.  Market to these lists consistently and you will find deals:

Sorry about the formatting...PM me and I can email you something that looks nicer.

LISTS

• Primary      Lists
• Equity       owner

• Equity       owner

i.30-100% equity

ii.owned 4 years or longer

iii.SFR

1.no apts, condos, land, MH, MF, etc

iv.1-3 bedrooms

1.this is where they buyers buys

v.Home values that are less than the median sales price in area

vi.Exclude corps and trusts

1.harder to deal with

2.more sophisticated

3.won’t get as good as deal typically

vii.Absentee owner

1.out of state – 1st best

2.in state, but out of city – 2nd best

3.in city – 4th

4.everybody markets to them

5.1st call pretty fast

viii.Owner occupied

1.65 years or older – 3rd

a.owned for 15 years or longer

i.most likely deferred maintenance

b.do not use home as a retirement vehicle

i.will want to be moving

ii.kids have moved out

iii.neighborhoods have changed

iv.need a care facility

2.everybody else – 5th

3.not getting bombarded

4.1st call a little slower because they don’t’ get touched as much

• Market       for 90 days, every 3 weeks if you can

i.Shorter than 3 weeks is too fast

ii.More than 6 weeks is too long

• You       absolutely must have bought a house after getting 90 calls

i.If not, your list must be faulty

• Sub-lists
• Obituary       notice

• Obituary       notice

i.Not a probate

ii.Not inherited

iii.Might be a trust

• Probates

i.Has to have real estate attached

• Inherited

i.Didn’t go through probate

ii.More than likely a quick claim deed, special warranty deed

• Unlawful       detainers(evictions)

i.Court action by landlord against tenant

• Divorcees

i.Has to have property involved

• Pre-foreclosures

i.Period of time that lender has lender has to change ownership of property

ii.Lis pendens

iii.notice of default

1.judicial or non-judicial

iv.most don’t market to trustees because it happens so fast

• Mortgage       lates

i.30, 60, 90, 120

ii.behind but not in foreclosure

iii.30 days is too short to market too…could get caught up on payment

iv.60, 90 days is better to market to

• Expired       listings

i.Setup as a hot list

• FSBO/FRBO

i.Put in yard or websites

ii.Call the phone number on sign

iii.Send mail if you are getting a subscribed list

iv.This is a hot call

v.Set appointments to buy, not sell

1.it is important that all the decision makers are there when I come to buy your house.  Will allthe decision maker be present?

• Tax-liens

i.2 years in Florida

ii.figure out the redemption period is

• Active       listings

i.Brand new, just listed

1.get daily list

2.person is highly motivated, make an offer

3.make sure they are on your main, equity list

ii.All 90 day listings

1.Going to expired in a day or two

2.Pull list at 85 days

3.Send out a letter saying you want to buy house

4.Will get letter as soon as it expires

iii.All 120 day listings

1.Same as 90 day

iv.All 180 day listings

1.Same as 90 day

• REO       properties

i.Pull list on all 7 day REO’s

ii.Write offers on all properties

iii.Don’t need to be on main equity list

• Short       sales

i.Will find through pre-foreclosures

ii.Will find through mortgage lates

iii.Get under contract and negotiate with lender

iv.Don’t need to be on equity list

• Vacant       & Abandoned

i.Driving for dollars

ii.Returned mail from mailings

iii.Knock on main door, then neighbors

iv.Send something in mail

1.use 1st class postage

a.Write “Do Not Forward”

b.Write “Address Correction Request”

v.Can find on MLS also

• Don’t      market to any of these groups unless they are on the main equity list      except for short sales and REOs
• It is      okay if the subgroups get more marketing pieces from your sub-group list

Rick H. · Answer

Your USP will likely evolve as your dynamic experiences reveal your natural talents, skills and expertise.

For example, I never intended to become a probate expert but rather use my foreclosure and title expertise in the legal community. It was only by accident that I was asked by several attorneys in attendance at the event I was speaking at to help their private clients.

I suggest you do as I was personally trained to do by Jay Abraham: Write about everything that you do that the customer, client or principal (seller, buyer, borrower, etc.) benefits by your action. You then whittle away at everything that is non-essential.

As I recall (well-over 20 years ago) I had about 1-1/2 pages when I started. That was reduced to a half-page, then two paragraphs, then one and then the USP I used for several decades.

Here's a format: "What I do for you, so that you get this benefit, even if...X"

Matthew Rollo · Answer

@Thomas Strock This is one of the most ongoing topics, EVER! hahaha How often do you see posts about how to start finding leads from new wholesalers? It is a big numbers game and it can be frustrating when you are first starting off. Not getting any phone calls makes it feel like a waste of time. It isn't though, it is just more prep time for when the first deal does come in.

Phone calls, mailers, FSBO, driving for $$$$, emails, texts, follow ups, etc... everything you read here works in one way or another. My best attribute is to get in front of the homeowner by any means possible. That is when I can be the most sincere and build the best rapport with them.

I send personal letters, handwritten, to very targeted leads after careful research (doing all of the above). Same as Account Closed I just inform them of who I am but never request to buy their house, like eveyone else. Leave my full name, phone number and email.

People want to know who they are dealing with so have some sort of paper trail that shows who you are. The internet can be very weird now a days so people get sketched out. I know I wouldnt want to deal with someone I have never met and can't find any positive information about on the internet.

Happy hunting and best of luck!

Jay Hinrichs · Answer

@Brent Hill  no kidding I was getting exhausted reading all of that :)  harder you work the luckier you get I am a firm believer in that motto.

Brent Hill · Answer

@Jay Hinrichs  That is why we read The 4-hour Work Week and we systemize everything and hire VAs to do most of it for us :-)

Jay Hinrichs · Answer

@Eric F.  if your area EM D are traditionally small or what have you FLASH cash works as well.. just walk in with 10k in cash and fan it at them.. leave them 500 or 1000 to sign the deal...

Unique Selling Proposition for Wholesalers?

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