Looking for properties to wholesale?
In part, finding properties that make good wholesale deals is a numbers game. To do more deals, you need to reach more homeowners more often. To do your first deal, you need to reach a certain number of homeowners.
How many?
It depends on your market. Competitive markets might require you to reach out to 2,000 to 4,000 homeowners per deal. Less competitve markets might only require 500 to 1,000 records.
In this guide, our price estimates are based on reaching 1,000 homeowners to get one deal.
Here are the tactics!
1. Door Hangers & D4D ~ $600
This first strategy is low-cost and super effective.
First, you need to understand how D4D (or Driving For Dollars) works. This is a term real estate investors and wholesalers use to describe this process…
- Driving around their target investment neighborhoods periodically.
- Writing down the addresses of homes that appear to be in distress. Common distress signs include…
- Boarded-up windows and doors: A clear indication that a property is vacant and may be distressed.
- Overgrown or neglected landscaping: This often suggests the property has been vacant or abandoned for a significant amount of time.
- Peeling or faded paint: A lack of maintenance and care may indicate a distressed property.
- Roof damage: Missing shingles or visible holes in the roof could mean the property has been neglected.
- Broken or missing windows: Damaged windows may indicate the property is abandoned or in disrepair.
- Accumulation of trash and debris: This suggests the property is not being maintained and could be distressed.
- Building code violations: Notices from local authorities on the property may indicate it is not up to code and may be distressed.
- Unfinished construction or repairs: A property that appears to have halted construction could be in financial distress.
- Water damage or mold: Visible signs of water damage or mold growth may indicate a distressed property.
- Tarp-covered areas: Tarps covering parts of the property may suggest underlying damage or issues that have not been addressed.
- “For Sale by Owner” signs: Owners trying to sell their property without a real estate agent could indicate financial distress.
- Empty or foreclosed properties nearby: A high number of vacant or foreclosed properties in the area may suggest distress.
- Reaching out to the homeowners of those homes to see if they’re interested in selling.
Now usually wholesalers reach out to these distressed homeowners by cold calling or sending direct mail. But we’re going to simplify that.
Instead of sending mail (which is a little spendy) or cold calling (which is a little uncomfortable), you can use these pen-inked door hangers we created.
They’re written by robots with real pen-and-ink to create a personal touch. And they get record-high response rates. Go buy 1,000 of ’em for about $600. Then drive around your target neighborhoods, put them on the doors of distressed properties, and wait for the phone to ring. Set a goal of putting up 100 per week and you’ll be through them in a few months. This is one of the simplest ways to find deals that we know of.
2. Postcards & Propstream ~ $1,000
To do wholesale deals, you have to find the homeowners and then reach out to the homeowners.
In the first strategy you find those homeowners by driving around different neighborhoods and looking for distressed real estate. But with this method, you’re just going to pull real estate data straight from Propstream — this software allows to filter and find super niche real estate data.
A membership costs you about $100 per month and allows you to pull 10,000 records per month. It’s definitely worth it.
Here are the best mailing lists for wholesalers that you can pull from Propstream…
- Absentee + Vacant: This list targets properties that are both vacant and owned by absentee landlords. These owners may be more motivated to sell since they are not occupying the property and might be dealing with the challenges of maintaining a vacant property from afar.
- High Equity + Absentee: This list focuses on properties with a high amount of equity and absentee owners. These owners have a larger financial cushion, which may make them more willing to negotiate a deal or sell at a discount.
- Empty Nesters: Empty nesters are homeowners whose children have grown up and moved out. They may be looking to downsize or relocate, making them more open to selling their property.
- Tax Delinquent: This list targets property owners who have fallen behind on their property taxes. They maybe experiencing financial difficulties and could be more willing to sell their property quickly to avoid further complications.
- Free & Clear: These are properties that have been fully paid off and carry no mortgage. Owners of these properties may be more likely to negotiate a deal because they have no financial obligation to a lender.
- Expired Listings: Expired listings are properties that were on the market but did not sell within the contracted time frame. Owners of these properties may be more motivated to sell since their previous attempts were unsuccessful.
- Active Liens: This list targets properties with active liens, such as mechanic’s or judgment liens. Owners dealing with liens may be more motivated to sell to alleviate financial burdens.
- Active & Dismissed Bankruptcies: This list includes property owners who are currently in bankruptcy or have recently had their bankruptcy case dismissed. These individuals may be experiencing financial distress and could be more willing to sell their property at a discount.
- Pre-Foreclosure + Equity: This list targets homeowners who are in the early stages of foreclosure but still have equity in their property. These owners may be more motivated to sell to avoid the foreclosure process and protect their credit.
- Inherited Properties: This list focuses on properties that have been inherited. The new owners may not want the responsibility of managing or maintaining the property, making them more open to selling it quickly.
If you don’t know where to start, then just start with the top filter, add your zip code, and see how many records you get inside of Propstream.
Again, you’re aiming to pull about 1,000 records.
If you get more than that, just keep narrowing your list with the above filters until you get to about 1,000 records.
What do you do with that data?
Send these hand-written postcards to all of those homeowners!
The front has an eye-catching graphic and the back has robot-written (with real pen-and-ink) text.
These postcards cost about $1 a piece and so you’re looking at $1,000 to mail 1,000 of them. Once you place your order with us, you can upload the list you pulled from Propstream and we’ll ship the postcards directly to your list of homeowners.
You just sit back, relax, and wait for the phone to start ringing.
3. Propstream & Cold Call ~ $300
That last method is one of the more expensive ways to find wholesale properties (it’s also the most efficient and scaleable).
But maybe you don’t want to spend so much money.
In that case, you could pull data from Propstream just like in the previous strategy (or if you really want to save money, then you could drive for dollars to build your list). Then, you could contact those homeowners by cold calling them instead of sending direct mail.
You can skip trace to get phone numbers for homeowners right inside of Propstream.
Not sure what to say when you call?
Check out this video to watch a wholesaler cold calling live and get an idea for how it works….
Of course, cold calling can be pretty tedious.
To make things more efficient and cold call your way through 1,000 records more quickly, you’ll want to use a bulk dialer.
These tools work by calling multiple phone numbers at once and only forwarding answered calls to you or your sales reps. This means you can get through bigger lists… faster. Here are some of our top picks…
CallTools — This is one of the most expansive cold calling tools available. They have a predictive dialer and preview dialer to make you and your time uber-efficient.
ReadyMode — Another option, ReadyMode is technically crafted for big or small call centers… but works wonderfully for cold calling teams as well. They have a predictive dialer and a CRM.
SmrtDialer — Perhaps the simplest of the tools, SmrtDialer has both CRM and power dialing capabilities.
4. Place ‘Bandit’ Signs (Legally) ~ $100
Bandit signs are called “bandit” signs because they’re illegal.
Regardless, they’ve become a common marketing method for real estate investors — they’re cheap (you can often get them for like $10 per sign) and they get the phone ringing if you place them on busy streets with good visibility.
The problem is that placing them can result in fines and the more you get caught, the worse the fines might be (not to mention that you’re literally giving your phone number to local law enforcement at the same time that you’re breaking the law).
It’s not worth it.
Check this out…
So…
How can you use bandit signs legally?
Here are some ideas…
- Ask Friends & Family: Reach out to your friends and family members who own property in the areas where you want to place your bandit signs. Ask if they would be willing to let you place your signs on their property. This can help you avoid potential legal issues, as you’ll be placing signs on private property with the owner’s permission. Be sure to explain the purpose of the signs and how long they’ll be displayed, so your friends and family members are fully informed and comfortable with the arrangement.
- Get Permission From Local Business Owners: Approach local business owners in the areas where you want to place your bandit signs and ask for their permission to put up signs on their property. This can be a win-win situation, as business owners may be interested in the potential foot traffic your signs could generate, while you can place your signs legally and effectively. Be respectful and professional when making your request, and be prepared to answer any questions the business owner may have about your signs and intentions.
- Leverage Properties You Own: If you own property in the areas where you want to place your bandit signs, take advantage of this by placing signs on your own properties. This ensures you have full control over the placement and allows you to avoid any legal issues associated with placing signs on public property or on someone else’s private property without permission. Just make sure you still adhere to any local regulations regarding sign size, design, and placement, even on your own property.
5. Recycle Old Data (Follow Up) ~ FREE
One of the most common mistakes that both new and experienced wholesalers make is…
- Pulling data
- Marketing to that data
- Throwing out that data
- Rinse & repeat
I’ve talked to Ryan Dossey about this and he’s told me multiple times that 99% of his deals come during the follow-up process — not during the first few points of contact.
And he has a rigorous follow-up process. This deal, for instance, netted $37,000 but it required a follow-up process with 8 phone calls and 142 text messages over 5 months!
Wild, isn’t it?
The early bird might get the worm.
But the consistent bird steals the whole damn worm nest (if that’s a thing).
The point is that you’re not done when you’ve marketed to your list once. Follow up with people who never responded. Skip trace and try new phone numbers. Send text messages. Follow up on the offers you make. Send more direct mail to the same people (you can use our 7-part postcard sequences). And juice your data for all it’s worth.
We recommend using a CRM like RESimpli to track your data and build automated follow-up processes that help you land more wholesale deals… for less.
Final Thoughts
Finding properties to wholesale for less than $1,000 may seem like a daunting task, but with the right strategies and persistence, it is achievable.
By focusing on targeted mailing lists, leveraging bandit signs legally, driving for dollars, and utilizing online resources, you can uncover hidden gems in the real estate market.
Remember to stay patient, persistent, and creative in your search.