Wholesale properties business is a creative way of becoming proficient in real estate investment while earning some profits at the same time. If you are into purchase processes and securing large financing is not your thing, then real estate wholesaling is all you need.
What is wholesale real estate?
Real estate wholesaling is a technique where investors shop for distressed or discounted properties and later sell to buyers at higher prices. Unlike flipping a home, real estate wholesaling doesn’t require an investor to repair or even buy the property.
Below are 5 tips for finding wholesale properties:
1. Pull lists
This is one of the best ways of finding properties for wholesale. You need to constantly look for real estate websites for both off-market and on-market listings. This will ensure that you get wholesale properties that are favorable to you. For instance, you can search by filtering homes that have passed a certain age limit.
However, checking these websites once or twice a week is not enough. You need to be updated frequently and this means checking the websites almost every single day.
2. Driving the dollars
This is a tactic that has been used for many years by seasoned real estate wholesalers. It entails focusing on a specific area and targeting distressed buildings that have higher chances of being sold at a discount by the owners.
A great tip here is to properly mark the addresses of all the distressed properties you are targeting so that you won’t lose track. You can also take advantage of the driving for dollars app from DealMachine to increase your chances of getting discounted properties.
3. Cold calling
This is another strategy commonly used by wholesale real estate investors. This is ideal for people who are not good at browsing websites and analyzing big real estate data. Cold calling involves getting a list of potential property owners and making calls to find out if they could be selling their properties at discounted prices. You can also link up with private money lenders who are experienced in your target market.
4. Send postcards via the mail
If cold calling is not your thing, then you can opt for direct mail marketing. You can create or purchase appealing flyers or postcards and use them to advertise your wholesale property business. But you should not post them just to anyone and instead direct them to prospective sellers.
5. Market yourself
Last but not least, you can also decide to sit back, relax and wait for sellers to look for you. The only way this can happen is by conducting thorough marketing to familiarize your business with the outside world. There are many ways you can market yourself including running social media ads across various platforms.
In a nutshell, real estate wholesaling is a great way of making good money while at the same time learning the ropes of real estate marketing.