How to Find Wholesale Real Estate Deals
Most people think about advertising to search for distressed properties at wholesale prices.
They usually search through online advertising such as Facebook marketing, Craigslist, SEO and other real estate advertising platforms.
The only drawback with these options is finding a lot of competitors knocking at exactly the same opportunity.
As a result, they end up not being the best wholesale deals after all.
Low-Cost Strategies to Find Wholesale Real Estate Deals
Despite major technological advancements, there are still conventional ways to find wholesale deals by exploring other avenues.
You can start by exploring areas that other people won’t dare to explore anymore. Sure, it’s more laborious and tedious.
Sometimes, you’ll even find yourself doing a lot of legwork, paperwork and talking.
However, if they guarantee a sure way to success, there is no reason for you to ditch the ideas. The basic tips and tricks that you ignore might actually be the best options for you.
Here are some of our top suggestions;
You have seen signs that say “We Buy Houses” in strategic locations. If you think they are not fair game, think again because they are actually effective.
Best of all, they can be done at such a minimal cost. Prior to placing your bandit signs, inquire about the city’s regulations and ordinances about these ads and see how you can observe them.
Make sure to put your phone number so that home sellers know where to contact you.
You can use a separate business phone number for your ad or you may get a Google phone number to avoid advertising your personal contact details.
There are many ways you can make and hang your bandit signs. It depends on how much time and money you are willing to invest on it.
You have the option to create or buy your bandit signs. If you have time in your hands, poster boards can also work, too.
You can create one while taking into account the city ordinances regarding legally-accepted dimensions. Even if city employees take them down, there isn’t so much to lose if you create your own signs.
More durable options are plastic signs with yellow lettering over a black background.
You can write something like “I want your house” and adding “in any condition” to make it more catchy.
You can place your ad flyers on cars in parking lots. Think about where your target clients might be dining or shopping.
Visit the parking lots of these establishments and leave your flyers on their car. Maximize your results by hiring a team to get your flyers out.
You may also coordinate with local store owners to distribute your flyers to their customers.
You can ask them to attach your flyers to their promotional materials or give them away along with the sales receipt.
Alternatively, your flyers can also be inserted inside the customer’s shopping bags after they check out.
Flyer distribution is a cost-effective means to reach out to potential home sellers.
You may feel that this method would deliver slow results but it’s much better than hanging around where your chances are way slimmer.
Getting one to two quality phone calls out of one hundred distributed flyers is more significant than not moving forward at all.
There are several ways to spot motivated sellers. Here are some examples;
People having garage sales
Watch out for people holding garage sales. They might be moving to another location and are thinking about selling their place.
People having garage sales are sometimes preparing for an important life event such as downsizing.
Therefore, they need the money to plan for their next big step. Stop by and leave a card with your contact details asking how you can possibly help.
Properties that are For Sale by Owners
Look for properties which are for sale by owner (FSBO). These home sellers usually cannot afford to list their house with a realtor and may be motivated to sell.
In some cases, the home sellers simply do not want to deal with a realtor thinking that it would take a huge chunk of percentage from the sales.
Approaching these home sellers and discussing to them a better deal can potentially open up an opportunity for you.
Properties that are “For Rent”
Take the time to review “For Rent” listings that you seen on the newspaper and local ads.
Call the property owners to inquire if they are interested to sell their property. Keep track of the ads and determine if they appear regularly.
A property that has not been rented for quite a while and is constantly vacant may eventually motivate the landlord or owner to sell it.
Homeowners may be motivated to sell a property that is in poor condition or is in a distressed state.
In such cases, the only reason why homeowners maintain their distressed homes is because they think that they won’t get a good price for it.
If you make a good offer and initiate reasonable negotiation, you can potentially create a win-win situation.