How do I reach buyers wholesaleing?

Question

I have been listening to the bigger pockets podcast a lot since I have discussed interest in it to a family member who suggested it to me and who owns property in Minneapolis, MN. I also want to focus on the market of Minneapolis, MN. I have decided to start out wholesaling and eventually I want to grow into buying and holding. For now I just want to know what marketing strategies for finding buyers will help me close the most deals? If you have any other advice to offer I am all for it. Thank you!

Dylan Thomas · Answer

@Malachi Johnson

I do direct mail, and retargeting ads online. I built a brand though. That’s a major key. A local, recognizable brand.

Christopher Parsons · Answer

@Malachi Johnson sounds like you're trying to build a buyers list before you find the deals in your area so that you'll be able to hopefully move these properties as soon as you find them. What I did was I created an excel sheet with a few columns that I thought were important to know about a buyer so I only send them deals they would be interested in closing (name, email, phone, price range they prefer to deal in, preferred zip codes, ideal property like a 2 - 1 that has space to add another room, etc). After I had that laid out, all I had to really do was look up flippers in the area (most of your buyers will be flippers) and just called them to introduce myself, told them a little about me and that I'm a new wholesaler, explained that I would like to ask them a few questions if they had time and wanted to do business. I spent maybe half a day and was able to add about 10 people to my buyers list with that method. REIAs area a great place to meet buyers as well, they're just not open where I am. You can also look to see if there is an REIA Facebook group for your area and introduce yourself there and ask for people's email if they're interested in doing business.

DJ M. · Answer

Check your states licensing laws first. You want to be careful not to break any laws.

Miller McSwain · Answer

Direct marketing will likely yield the best results. This is where you search for people willing to sell their property. This is the opposite of how homes are typically sold to the average person. Typically, a seller posts their property for sale, and buyers come to them. This causes many people to compete for a property, which is not great for wholesalers. Wholesalers need to get a property under contract for MUCH LOWER than market price.

To find a property under market price, you will likely have to find people who are willing to sell before they list their property. This is done by direct marketing. There are many tactics however, the most common include:1. Batch texting owners in your town2. Cold calling owners in your town3. Mailing owners in your town4. Driving for dollars5. Door knocking

If you do any of these consistently, you are likely to find some great deals.

Feel free to PM me if you have any specific questions!

Mack Benson · Answer

I think yes and no, isn't that how many responses in real estate go? I found this thread from a couple years ago where it was discussed and to sum things up it could be illegal depending on how the wholesaler does their marketing. https://www.biggerpockets.com/... One thing to point out from the post is that if the wholesaler does not have the ability to close on the property and if the homeowner suffers damages related to that then the wholesaler can be held liable.

It's been a little while since I have looked but I know MNREIA was doing their Wholesale 101 class monthly before Covid and when I was looking for SFR the marketing was very specific that they were selling an assignable contract. I'm not sure about the nuances and verbiage but I know their are still people doing it in the cities.

Joe Splitrock · Answer

I thought marketing a property you didn't own without a license is against the law in Minnesota.

Audrey R Talbert · Answer

@Malachi Johnson

I looked for regional REI groups on Facebook and skimmed through posts.  It took an two hours to make a list of 100 buyers.

Parker D. · Answer

I think @Miller McSwain is correct when it comes to sellers. Direct mail marketing is probably the way to go. Although I personally don’t have experience with direct mail marketing so do with that as you will...

I believe finding good deals is going to much more difficult than building a network of buyers. In other words - If you are able to consistently source good properties and the numbers check out, I don’t think you will have an issue finding buyers for those properties.

From my experience some wholesalers have an email list setup to blast properties to their network of buyers. They then set aside a time with the owner for an open house for people to come and take a look.

Ray Danishyar · Answer

Hi guys / all great tactics except in the day and age of digital marketing and technology I have built a massive lead generation system. It’s working very much smarter and more intentional. Many people haven’t mastered it that’s why they stick to old school ways of doing business. just my thoughts though.

Susie Evans · Answer

@DJ M. Definitely would agree. I’ve been trying to work with Wholesalers here in Michigan. Legit ones seem very hard to find.

How do I reach buyers wholesaleing?

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