Wholesaling real estate has grown to be one of the most popular methods of earning income by real estate investors. This method of doing business in real estate is a growing activity in many parts of the world including the U.S.
Wholesale real estate refers to selling properties that are already bought or those that have been pre-purchased by an investor. A wholesaler purchases the property through negotiations with the seller at a price determined mainly by negotiation skills instead of appraisal abilities. Unlike rehabbers that are renovating homes, wholesalers secure a contract on a property and sell at a higher price.
Wholesalers then need to sell these properties to a third-party buyer, generally to a cash buyer or even through an auction. But how do they find these buyers?
How to Find Buyers for Wholesaling Real Estate
This article will explain the methods used by wholesalers to find buyers for their properties. These are also the various ways to grow your existing buyer’s list as a wholesaler.
Find Buyers through Networking
Apart from the internet, you can find many potential buyers when you network with people. You should get to know the real estate agents, mortgage brokers, contractors and wholesalers in your area. Having them as your contacts will introduce you to new potential buyers which will in turn help you build upon your wholesaling buyers list.
Another way to network and get clients is to attend events that are related to real estate. Such events include real estate related conferences, seminars, trade shows, auctions, and conventions. People who attend these events will have a great interest in learning more about real estate opportunities.
Post Your Deal on Wholesale Property Marketplaces
One of the most effective, yet widely underutilized, ways to find buyers for your wholesale deal is to simply post it for sale on online real estate marketplaces. However, while there are many generic real estate marketplaces available on the web these days, there are not very many marketplaces that specifically list wholesale properties for sale. Many wholesalers post their contracted properties on those generic marketplaces but are rarely able to sell them. It is because generic real estate marketplaces have mostly people who are looking to buy property to live in. Instead, you need to identify specialized marketplaces that target investors looking to purchase lucrative deals where you can create an account and list your wholesale properties for sale.
Join Local Real Estate Clubs
Local real estate investors clubs are one of the best places to find clients. They usually have monthly meetings where you can promote your deals, services, and products. You should talk about the properties you specialize in and tell them how to contact you for more information.
Don’t be afraid to pay a membership fee if this means you’ll get some good clients coming your way. Always choose active clubs if you want to find clients quickly.
There are also online property investment clubs that you can join. They have forums where real estate agents, house flippers and wholesalers discuss real estate opportunities with other club members. You should participate in discussions and tell other members about your deals. Once they trust you, you will be a member of their list as well, which means that you’ll have more opportunities coming your way.
Find Buyers (and Sellers) Using Bandit Signs
One of the easiest ways to get clients interested in wholesale houses for sale is through posting bandit signs. These are real estate signs that you put up in high-traffic areas near your target market. Make sure to include your phone number and website address on the bandit signs. This way, people will know where to go when they are interested in your deal.
Bandit signs can be effective if you combine them with other marketing methods such as social media or Google AdWords. They are not very expensive, so you should get a lot of traffic if you post them in strategic places.
Find Buyers Through Craigslist
You can find clients for your wholesale houses for sale when you use Craigslist.org. It’s a very popular website that attracts people who are looking to buy or sell real estate. You should post some ads and answer inquiries from people interested in what you have to offer.
Craigslist is almost like an online version of bandit signs that’s free. It offers an excellent way for beginners in real estate wholesaling to find property buyers. When putting your ad on Craigslist, make sure you include all the information to make it easy for your clients to contact you. You should also make sure that the ad is free of misspellings and grammatical errors so potential clients will trust you. Be vigilant when working through this channel so that your wholesaling operation is safe from a legal standpoint.
Online Investor Forums
Many real estate investors are members of real estate forums, where they can give insights into how wholesaling works. They are the best places to make contacts with potential buyers. As an agent, you should join and participate in discussions to have a good chance at getting on people’s good side. You need to enhance your trustworthiness as a wholesaler.
You should also make sure that other members of the forums know that you’re in the wholesale real estate business. Being known will help you to stand out from the crowd of users on these forums. If anyone mentions looking for real estate, then contact them and tell them about your deals.
Find Real Estate Buyers through Online Channels
The Internet is a rich source of buyers for everyone in the wholesaling real estate business. It’s very easy to find people looking for investment opportunities online. There are different ways to find buyers online that you can employ.
Build a Website
One of the places you can get buyers is through your website. Getting traffic to your website is the first thing you need to do before looking for buyers online. Your website introduces your business and tells the buyer everything about it.
Your website doesn’t need the fanciest design to attract buyers. It just needs information about you and your business, the contact details of other people in your team, as well as links to social media accounts.
Leverage Social Media
Social media can help spread knowledge about what you do and what your business offers. Social media platforms such as Facebook, Twitter, and Pinterest have tons of information about what people want and need in every part of the world. Wholesalers can find many potential buyers through these social media platforms if they know how to use them effectively.
Build a Contact List of Leads
One great way to add on to your buyer list is to network with your previous clients. Let your existing or previous client know that if they hear from anyone interested in investing in real estate, they should call you or give out your contacts.
Don’t forget to make use of your personal contact list of agents, investors and home flippers. You never know; great property buyers may just be a phone call away. You will never make sales if you don’t tell your close contacts what you do.
You can use a CRM and phone number validation and verification API to keep your contact list clean and reliable. Anytime a potential client calls you, this system can validate and verify them before they’re saved to your database. It’s also capable of picking up valuable geographic information from phone numbers, which is helpful if you work locally or in select locations. Plus, it can identify fake and invalid phone numbers that often link to cold leads.
Other Considerations
Becoming a successful real estate wholesaler is not just about securing distressed properties at below market value; it's equally vital to connect with the right real estate investor willing to buy those deals. From harnessing the expertise of real estate agents to tapping into direct mail strategies, various methods can guide wholesalers in finding wholesale properties that stand out.
The role of real estate agents, for instance, cannot be underestimated as they can be instrumental in identifying potential investment property opportunities. Real estate wholesalers must also be vigilant in understanding the nuances of their local real estate market, ensuring that wholesale real estate deals are priced attractively enough for other real estate investors.
On the flip side, real estate investors benefit immensely when they find real estate wholesalers who have a knack for sourcing premier real estate wholesale properties. Motivated sellers, property owners dealing with distressed properties, and a keen eye for market value are all critical components of a lucrative wholesale real estate deal.
Whether you hold a real estate license or not, networking with other players in the real estate market, understanding the needs of motivated sellers, and building a robust database can truly make the difference. In this dynamic environment of the real estate world, finding wholesale properties and making them profitable is a dance between the wholesaler and the investor.
Conclusion
Wholesalers have to do their research to find buyers who are ready and willing to buy a particular property. These steps can help you build a great buyer’s list and lead to more profit in your wholesale real estate. People on the list are ready to buy right away as long as you get them what they want.
If these methods don’t work for you, SimpleShowing will be here to help make things easier. You can list your properties with us and find potential home buyers quickly. If you are looking to invest in a wholesale property, make sure you know about our buyer refund incentive.
