Wholesale marketing tactics

[James Brunetto, jr]

I started reading up on the concept of wholesaling and am trying to figure out what to do to get results? I have heard Facebook ads, direct mailing campaigns, etc. But what makes for a good message to potential sellers? Are there certain styles or wording that I should be using? Also, what type of people should I target for my direct mailing and marketing?

[Michael Quarles]

Originally posted by @James Brunetto, jr:

I started reading up on the concept of wholesaling and am trying to figure out what to do to get results? I have heard Facebook ads, direct mailing campaigns, etc. But what makes for a good message to potential sellers? Are there certain styles or wording that I should be using? Also, what type of people should I target for my direct mailing and marketing?

 Good Morning James. 

Let us first confirm that you are actually wholesaling not assigning. 

Wholesaling is buying a property at a reduced value, closing on the purchase, then reselling it a reduced value. Typically to an Investor.

Assigning is selling the right to buy the property. In other words you are selling the contract. Be careful doing this  as in some areas it is a violation of real estate law.

In either case finding your buyer is all about networking. things I would do to sell an assignment or wholesale property.

• Buy a list of all property owners who bought multiple properties and who paid cash in your geo within the last 6 months. (it will be a  small list however now you have your cash buyers name and mailing address. 
• Visit your foreclosure auctions. Those there will be cash buyers.
• When contracting on the property ask the seller for all of the marketing they received. Now you have the telephone numbers of people like yourself who were looking for properties too.
• Check your contacts on your telephone. Youll be surprised how many of them would buy a reduced property. Start working your Center of Influence. 

Things I wouldnt do.

• Advertise it on craigslist.
• Send marketing out. i.e. direct mail, facebook, etc
• I would not do an open house.. This is an opportunity to be stung by the Department of Real Estate.

Better Option

Wholetail the property.

Wholetailing is buying a property at a percentage of As Is value NOT ARV. then selling it at full value via the MLS not doing any work to the property. I know that it cost me 8.25% to buy, close twice and pay a Realtor. However I am buying at 35% of the value so typically my pre net is 26.75.

Reason I use the MLS is because that is where the traditional Investor buyer goes to find property. They use an agent. And the as is property is much like a REO and so there are plenty of cash buyers who will buy and rehab then either keep or turn it. I dont care if they make money on the spread of ARV since I made 26+%.

Furthermore once I get the contract I will order a BPO, Home Inspection, PreLim and Appraisal. Those items cost me 1000 however I am now confident of values. Once I know I am closing on my purchase I will list the home on the MLS using a Real Estate Agent. That is key!

BTW Wholetailing is an extremely good virtual play. Since I never see the seller and never see the house I can buy all over the country. 

Happy House Hunting.