Bandit Sign Marketing WITHOUT properties?

Question

Time and time again, I've heard that as a wholesaler, I should build my buyers list first. I've decided to take the route of using bandit signs but all the bandit signs I've seen have deals listed on them.

Whats the best way to market with bandit signs when you don't have a deal? What keywords or phrases do you use?

Joe Dube · Answer

I'm glad this makes sense to you. Curt has a very good point that sometimes gets lost in communication. You need to put the property under contract so you have an interest in that property. Then you can close on the deal and resell it or if the contract is assignable you can sell your contract to a cash buyer. I should've explained in my earlier post. If you don't have an interest in the property and try to sell it you are acting as a realtor without a license and there can be fines etc... I'm not an attorney so please DON'T mistake this as legal advice. This is what my attorney advised me in Florida. Check with a RE attorney in your state to be sure. Hope this helps...

Joe Dube · Answer

Stephen, Call all the for rent houses on classified ad web sites. These are land lords, right? Ask if they are looking to buy more houses. If so, what type? Tell them you get houses like the ones he's advertising for rent and want to know if you can put him on your buyer's list. Then call them when you have a good deal. The landlord may want to sell the house instead of renting. If so, you have a possible house to buy. This is very simple however, a lot of folks will not do this because they are afraid of the phone or making money or what ever may be. I have a hard time figuring that out. Just take massive action & good things will happen for you. I hope this helps...

Curt Davis · Answer

You should also get your RE license as I believe you selling other peoples property is illegal if your not licensed. Only the actual owner of a home can sell the home unless your a RE agent.

Brian Haskins · Answer

You donâ€™t need a buyers list to get started. As far as what you can put would be, foreclosure, must sell today, tons of equity, handyman special must sell today, 100k worth of equity. You can pretty much say anything you want and then when people call just tell them its sold but you can add them to your list of buyers. You just want to make it outrageous so they will call. Brian Haskins

Frank McGovern · Answer

I use bandit signs to attract motivated sellers. I put on them "We Buy Houses Cash Any Condition Any Situation" and my#. As for getting buyers before before you have deals, their are buyers that do multiple flips at a time and are looking for good deals all the time. So even if you got an investors number a couple months ago, as long as you have a good deal, they will be interested (granted they are willing and able to close). Also, when I get a property under contract (im a wholesaler), the contract states that the $10 I give the owner gives me a financial interest in the home. That allows me to market the property. Make sure you consultant a local RE attorney. Just a newbies 2 cents.

Joseph Ziolkowski · Answer

Hi Mark, I use bandit signs to market for buyers even when I don't have a deal. Make at least some of them outrageous like Brian said. For example, on one of them I wrote, "Rehabbers/Landlords, Crazy Deals On SFH, CASH ONLY. But then on another one, I wrote, "I'm Selling My Little Brother! CASH ONLY! 3/2 SFH Needs Repairs, Appriased:180k Asking:100k" Switch the numbers to fit your area's values, of course, but that's a pretty good ratio to use. Just over 50% ARV after repairs. Hope it helps!

Mark Powell · Answer

I have two questions. One is how do I contact buyers after I have got them on my list. What I mean is I am new to the game and every where that I have read has said that it is best to build your buyers list first, which I sorta understand, but say I spend 3 months building a buyers list. Don't you think half or more of those people will have either blown there down payment or already purchased a house? How does it make sense to build a buyers list when you do not have any properties to sell them. Wouldn't it make more sense to build a large portfolio of properties that way buyers could pick and choose what you have to offer? Second, I understand that it is illegal to sell real estate without a licence, but when you say that the house needs to be under contract for me to be able to sell it I take that as needing several thousand dollars to apply towards an earnest money fund. Is there a way around doling out earnest money until the close?

Jon Holdman · Answer

Mark, if you get a deal with a bank on an REO or short sale, they will require earnest money. Keep in mind banks DO NOT want you to wholesale a deal. They figure any money you make on the deal is money that's really theirs. With a private seller, though, you should be able to get away with minimal earnest money.

Stephon Blackwell · Answer

Yes, this helps a WHOLE lot. Thanks. What are some good classified ad websites(craigslist is the only I have in mind right now)?

Don Konipol · Answer

Bandit signs are usually used to find owner/occupants, not real estate investors. Build a buyers list of real estate investors by networking in real estate investor clubs, participating on line real estate investor websites, and interviewing the most active investors in your area to find out their criteria (vist their websites).