To be a successful real estate wholesaler, you need two driving factors – you must know how to find great deals and how to get sell the properties fast. In other words, you need to be a deal seeker, so you snag properties at great prices. At the same time, you are acting as a wholesaler, you don’t hold onto them, you immediately sell them for a profit, which is why a large lead inventory is crucial.
You need to be quick on your feet and to have a decent following of investors. Here’s how to get that following with or without a list of houses to sell.
6 Ways To Find Investors For Wholesale Houses
Create Your Own Network
Real estate is all about networking and today it’s easier than ever. Whether you get together in person or meet on Zoom, there are multiple opportunities to network in your area. Join your local Chamber of Commerce and any real estate groups in the area. You can even start your own groups using Facebook to garner the interest of investors.
The key is to constantly get your name out there. Get with real estate agents, title companies, and mortgage companies. Let everyone know what you do. The more people that know, the more your information will get passed along.
Every day or at least a few times a week set aside time to network outside of your current leads – you never know when you’ll strike gold.
Contact ‘We Buy Houses’ Advertisers
You’ve probably driven past hundreds of the ‘we buy houses’ signs. That is like an investor waving his flag in front of your face. Call them. Most will take phone calls and will be willing to get on your investors’ list for when you find properties.
Since you’re trying to sell the property fast, these ‘we buy houses’ investors could be your best bet. They usually pay cash and close fast, allowing you to turn around and do it again much faster.
Talk To Your Personal Contacts
You may have more referrals in your personal contacts than you realize. Look at your social media list or even your text string. How many people do you talk to daily, even if it’s only written? These could all be opportunities that if you don’t nurture them could fall apart.
Be vocal about what you do and how you’re always looking for investors. You never know when you might pair up with someone you are close with and have the deal of the century. You know if the deal goes well, people in your personal contact list will refer you to others. It’s a great way to expand your referral network with little legwork.
Work With Hard Money Lenders
As far as professional references go, it doesn’t get much better than partnering with hard money lenders. They primarily work with investors and they may know some who are looking for new deals.
Again, the more people that know what you do, the more they’ll share your name. Whether hard money lenders have investors whose deals fall through or investors who want to build a great pipeline, get your name out there with them.
Get To Know Property Management Companies
Property management companies work directly with investors. If they hear anyone who wants to expand their portfolio, they may pass your name along. This is about as direct as it gets when trying to get in touch with potential investors without cold calling.
Become An Industry Leader
Everyone turns to leaders and with social media today, it’s easy for anyone to become a leader. Rather than focusing on just buying/selling houses, show that you care about the community. Get involved doing community work and helping others. Even provide some advice or free seminars/education on your social media pages to become the ‘go-to’ real estate guru.
As you build a following, you’ll become the industry leader. It takes only one or two posts to go viral for others to quickly jump on the same bandwagon. You could grow your following and do good for the community at the same time.
Does Real Estate Wholesaling Work?
Real estate wholesaling can work if you put the effort in. It’s not just about finding the right property – you have to be able to market on both sides. You must be able to score great deals, buying undervalued properties, and have the market to buy them.
It’s a lot more about marketing and building a strong list than it is finding the right properties – those will always show up. It’s about building networks and relationships throughout the community – showing that you are a community leader.
If you’re willing to put in a lot of sweat equity, be a forward thinker, and always be looking for ways to increase your referral list, you’re on your way to creating a profitable career in real estate wholesaling.
What Are The Benefits Of Real Estate Wholesaling?
It sounds like a lot of work, so why would anyone want to participate in real estate wholesaling? Here are a few of the benefits:
- You can earn profits fast. There isn’t a lot of lag time between when you buy and sell the house, so all your hard work pays off fast.
- You get to help both sides of the real estate equation – buyers and sellers.
- You don’t need a large amount of money to start or stay in real estate wholesaling since you buy and sell in such short periods.
What’s most important is building your list of wholesale investors. Don’t take this responsibility lightly. The larger your real estate investor list, the better your chances of selling wholesale real estate fast.
Being a wholesaler requires you to be quick on your feet, great with your words, and to have the largest network possible to increase your chances of selling wholesale homes quickly, and making a decent profit.