How To Find Wholesale Deals

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Wholesale Properties Are Great Investoments

What I love about real estate investing is that there are so many opportunities to get involved — once you find wholesale properties that match your criteria.

Finding a wholesale property opens up the possibility of:

  • Quick fix-n-flip — fund the purchase and rehab, then sell for profit.
  • Buy-n-hold — acquire the property and rehab, with the long term goal of renting it out and selling, once the market is right.
  • Wholesale deals — presenting the opportunity to investors, making commission.

But let’s face it, if you’re new to the game, your brain could explode trying to figure out where to get started — plus, you might have financing issues that prevent you from taking advantage of the opportunity.

Well, your prayers have been answered because today, because we’re going to look into the wide and wonderful world of wholesaling — and I’m going to reveal insider secrets that could get you up and running even if cash & credit aren’t on your side.

NOTE: Before we proceed, don’t get in over your head. Investing in a fix-n-flip can be extremely lucrative once you know what you’re doing. It’s a good idea to start with an investment collective so that you can familiarize yourself with all the phases and metrics — and with a collective you minimize risk. More on that below!

Wholesaling is an art of sorts. It requires knowledge about construction — as well as relationships. Wholesaling fills a void for investors, too. Often, their biggest problem is finding out how to find wholesale deals. That’s where you come in.

In a nutshell, your mission is to find wholesale deals — properties that need some work (or possibly not) that have highly motivated sellers — and connect them with investors. You can accomplish all of this:

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  • Without risking your own nest egg.
  • Without investing time to fix-n-flip — with wholesaling done right, you get paid at the BEGINNING.
  • Over and over, working multiple properties, simultaneously. You might even find that investors are contacting you once they know what you can accomplish.

With the strategies I’m about to reveal, even a beginner can find the fast track to finding wholesale property deals — and huge paydays.

Using Bandit Signs — We Buy Houses

Bandit signs are highly effective — they target your exact demographic (a homeowner who needs quick cash).

Bandit signs are a terrific strategy. Often, it’s over done with common phrases like “We Buy Houses”, “Cash For Homes”, “Sell Your House For Cash” and such like — but I’ll show you how to deal with that clutter shortly.

Bandit signs are a great strategy but you have to be careful about codes. There are places you can and can’t put your signs — don’t risk breaking local laws.

Working Your Inner Circle Network

Look for personal opportunities within your circle — grocery store bulletin boards, church & laundromat boards — community places with a high concentration of eyeballs.

Don’t just post your business card though — make a mini-ad that conveys your message and appeals to prospective sellers.

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Homeowners often look at contacting a real estate agent to sell their home, as a huge hassle that’s going to take a long time — and cost them commission. If they’re in a hurry and want to avoid all that hassle, you’re providing a much-needed service to them.

Even when you’re looking to buy, you’re still selling something. This is an area where some copywriting strategies can come into play — what are you really selling? Convenience? Speed? Stress-relief?

Instead of just “We Buy Houses”, try to focus on what your prospective wholesale homeowner really wants.

  • “Can I Buy Your House Today?”
  • “Sell Me Your Home For Cash”
  • “Fast Cash For Dilapidated Homes”
  • “Sell Me Your Mortgage”
  • “Divorce? Sell Your House Today!”
  • “Quick Cash For Crappy Houses”

You might laugh at some of the things you come up with, but if you’re competing with a lot of “We Buy Houses” bandit signs — you want yours to get noticed.

Make sure your signs are large enough to get noticed and that they can be easily read in whatever setting you place them in. If you’re using H-signs on the side of the road, don’t forget to check with local codes so that you know exactly what can and can’t be done.

Bird-Dogging

Bird-dogging doesn’t actually involve canines but the concept is the same — you locate the prey and the hunter takes over.

Believe it or not, one of the toughest aspects of fix-n-flip rehabs, is finding the properties. Even if you have all the funding you need, answering the question of how to find wholesale properties is still going to be a challenge.

Many investors rely on bird-doggers — people (like you) who will hit the pavement and locate potential properties. This means you need to know the requirements for a potentially profitable flip — and then you get out and comb the countryside looking for a viable candidate.

Look for homes that show signs of neglect or disrepair. Look for empty homes. Homes get in these conditions for various reasons, not all of which are obvious.

  • Aging homeowners who can’t keep up maintenance — sell them on the idea of cashing out quickly and funding their RV retirement trips.
  • Deaths — the homeowner may have passed and relatives don’t know what to do with the property because it would take a lot of work to make it marketable.
  • Financial problems — the homeowner simply doesn’t have the cash to get things fixed.

Hop in the car and take a drive. Visit rural, as well as urban communities. When you spot a viable candidate, knock on the door and ask the homeowner if they’ve thought about selling. Feel them out and if their interested, get their contact information — ask them some questions about the property and tell them you’ll follow-up once you’ve looked at the numbers.

It’s best to present an investor with at least a bird’s eye view — acquisition cost, rehab estimate, ARV (after rehab value) and comps in the area.

Online Dragnetting

One thing I’d like to point out is that in most cases, a combination of strategies should be implemented — especially if you intend to go through multiple wholesale deals in order to amass enough nest egg to completely fund your own fix-n-flip.

I say that because the strategies I’m about to reveal to you may come across as much less work — but I don’t want you to get the impression that you can rely on them solely.

Back in the day, I could throw up a Craigslist ad and have all the rehab candidates I could handle. Today, it’s a bit more of a challenge — mostly due to competition.

Craigslist

Over the years, Craigslist has compounded their rules and it’s increasingly more difficult (and costly) to post ads — but you don’t just have to post ads to find wholesale deals. You can also search for ads that homeowners have posted.

If they’ve posted on Craigslist, they probably want to get rid of the property quickly, with as little aggravation as possible. Keep in mind though, that could also mean they’re getting a lot of offers from other wholesalers. Run your numbers and give them an offer that will make you happy — it may be all it takes to cinch the deal. If they don’t like it, walk away.

You can apply the same techniques to other online listing sites like ForSaleByOwner.com or Auction.com. Again, these are sites where the seller is motivated and doesn’t want to go the traditional route of working with a real estate agent.

Using The MLS System

You can use the MLS System to focus on listings that have expired — meaning the property likely didn’t sell.

Now, why wouldn’t a property sell? It could be any number of reasons: Price, location, condition — you name it.

Go to MLS.com and start out looking in an area where you already have some of your bandit signs. That subconscious suggestion could be all it takes to tip the scales when you make first contact.

With the MLS system you can focus on geographical location to identify potential properties in your area.

You’ll have to sign up and pay their subscription fee if you want to do the searching yourself — but you can also contact a real estate agent (or broker) and let them know your requirements. This is where networking relationships really pay off.

If you’re internet savvy and don’t want to pay the subscription fee on MLS.com/RealtyStore.com, you can also find potential properties with the MLS search — then contact the listing agent directly about the property.

Once a potential property has been identified, contact the homeowner and let them know you’d like to discuss a quick sale of their house.

What’s Next?

Once you’ve identified a property and settled on an offer price, you’ve got three options:

  • Fund the project yourself including acquisition, rehab and selling.
  • Find an investor to wholesale the deal to — this is where you get a fee for facilitating the transaction.

Let’s look at that second option, finding an investor.

Cashing In With Investors

With the details of the deal worked out, the next thing is getting paid. Again, you’re going to rely on your professional network. Accredited investors can be hard to locate so you might want to work with a real estate investment collective.

A collective pools investor resources to quickly acquire properties and either fix-n-flip, or fix-n-rent. Either way though, working with a collective means you get paid and wash your hands of the entire situation.

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Also, a collective is a great way to learn the ropes of rehab development without the associated risks most newcomers face. You might even be permitted to invest in the project you found — which basically means that without having to front the purchase price or rehab, you still get a stake in the profit once the project is complete.

For more information on how a collective works, signup for the free OPM Secrets webinar series here.

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Ken Walker

Ken Walker

Ken Walker is the Digital Editor of OPM Secrets. Having started in commercial construction right out of high school, he has since worked in every aspect of new construction from foundation work to framing, drywall, roofing, plumbing and electrical — as well as interior finish work, cabinet & countertop installation, windows, doors and siding.

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