How to Build Your Real Estate Investing Wholesale Buyers List

12/05/2008 | By | 15 Replies More

I’ve been on a bunch of coaching calls recently with students. One of the main strategies of interest to investors seems to be wholesaling. And I think it’s great!

Wholesaling is an awesome way for beginning investors to get their feet wet without sticking their neck out too far. You can virtually limit your risk to next to zero if you use the right techniques. Wholesaling is also a great way to create cash flow for beginners and pros alike. Lot’s of times, you can wholesale deals for anywhere between $3K and $10K. Not bad for never having to even close on the property, right?

With that being said, there have been many questions in reference to building a list of wholesale buyers. Soooo, here we go . . .

6 Surefire Ways to Build Your Wholesale Buyers List

1. Call Other Investor’s Marketing

When you drive by a bandit sign or run across a “We Buy Houses” ad in the newspaper, write down their phone number and give them a call. Most investors are constantly on the lookout for more deals, especially the ones that are actively marketing to find motivated sellers. Of course these people are going to want to be on your wholesale buyers list. It’s a no brainer!

Here’s another good tip: If you are ever at a seller’s house that is in foreclosure, ask the homeowner if they have received any letters from other investors. A lot of the time, the seller has a big stack of letters and postcards. That’s a great opportunity to grab those for a couple different reasons. You can study what other investors are using for direct mail and you can contact all of them to be on your wholesale buyers list.

2. Real Estate Investment Associations

Where else can you go each month and find a large room filled with potential wholesale buyers?

Attending your local REIA meetings are an easy way to network and build your list. You’ll meet beginners and seasoned pros . . . both of which could be great prospects for your properties.

Make a goal of exactly how many people you are going to add to your wholesale buyers list at each meeting.

3. Ghost Ads

First off, let me explain what I mean by a ghost ad. The purpose of it is to get your phone ringing with a certain type of prospect. In this case, your ad would be geared towards real estate investors that are actively buying investment properties. You could put this type of ad in your local newspaper or on websites like Craigslist.

Here’s an example of what a ghost ad might say to attach wholesale buyers:

Attention Investors!

3/2 being sold AS-IS

$70K OBO

Call (xxx) xxx-xxxx

You don’t need to have a property that fits this criteria to run the ad. This is used simply as a tool to get your phone ringing with wholesale buyers. Yes, you will have to sort through the calls to get to your primary prospects but how valuable is it to have a HUGE wholesale buyers list?

By the way, when people call, let them know the property is no longer available and ask questions to see if they would be a good candidate for your list.

4. Ghost Signs

This should probably seem pretty self explanatory now. Homemade signs work the best. You can use the same or similar ad copy on your sign.

You want to say things in your ad that would tip someone off that it could be a good deal or that the “seller” is motivated. That’s the kind of ad that real estate investors would typically call.

5. Foreclosure Auctions

Talk about a fantastic place to build your wholesale buyers list! The type of people that go to real estate auctions are cash buyers. Typically at auctions, after someone wins the bid on a property, they have to immediately put down a small down payment and then close within 30 days.

Call your local county courthouse to find out when and where the auctions take place in your area. Where I live, there are three counties that we actively invest in so there are auctions taking place all the time. Make sure to take plenty of business cards with you, and let everyone know that you come across great deals BEFORE they get to the auction. Therefore, you can most likely provide better deals.

This is also a great opportunity to meet some of the real movers and shakers. Anyone that you see buying several properties would be a great person to buy lunch and pick their brain.

6. Wholesaling Website

Having a website could be good for a couple different reasons.

If it’s set up properly, it could organize your wholesale buyers list in a way that allows you to quickly find everyone on your list that is interested in whatever specific deal you have on your plate.You could also list all of your available deals on the site for the world to see.

If you are computer savvy or hire someone who is, it could turn into a huge lead generator for you.

Building a rock solid wholesale buyers list can provide huge benefits in the real estate investing game. Having the list and learning the process of wholesaling deals is an extremely valuable skill to develop. At any point in time, you could turn a seller lead into thousands of dollars in cash in your pocket within days. Now that’s powerful!

- Patrick

P.S. – One of the best things about wholesaling is that you don’t need cash or credit. I made $10,000 on my first wholesale deal when I was just 22 years old.

If you’re interested in taking your wholesaling education to the next level, check out this FREE 7 day wholesaling mini-course. It’s  a great resource and doesn’t cost you a dime!

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Category: Real Estate Investment Selling Strategies

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  1. Doug says:

    Great post Patrick! Foreclosure auctions sound like a killer place to find wholesale buyers.

    Thanks again for the tips.

    Doug’s last blog post..Using FaceBook For Business

  2. aturner says:

    Do you really ask sellers who are in foreclosure for all the letters they get from investors? I’ve never thought about that before as a way to network.

  3. Patrick Riddle says:

    aturner,

    Definitely. We have a big file where we collect other investors marketing. Over the years, we’ve used it for networking purposes but also to get marketing ideas for our stuff.

  4. Dusty Keefe says:

    Hey Pat, here’s another way for investors to build their wholesale list:

    7. Get a list of evictions that have been filed.

    Often times these landlords are great to put on your wholesale buyer’s list but also to see if they are interested in selling any properties. Burned out landlords can be a good source of motivated sellers.

  5. Great post on finding buyers.

    I agree 100% on your idea of getting the marketing of other investors when you visit a home owner. I collected over 25 letters once from one seller – and added several names to my buyers list from this and gained some good ideas for marketing.

    Thanks
    Stefanie

    Stefanie Blackburn’s last blog post..Multiple Streams of Income — Offer Credit Repair Services

  6. The information presented here is excellent for me and other beginners in building our wholesale buyers list.

    This is one of my primary objective is to build a strong buyers list.

    Thanks

    Charles Johnson

    charles johnson’s last blog post..COMMERCIAL REAL ESTATE: Bert’s Bikes plans to open location here – Rochester Democrat and Chronicle

  7. Patrick Riddle says:

    Thanks Stephanie!

    Charles,
    Glad to hear that building a strong buyer’s list is your primary objective right now. Having one can prove to be extremely valuable.

    Also, I think that wholesaling is a great entrance strategy into real estate. Good luck with it!

  8. Patrick Riddle says:

    Thought of another way to build your wholesale buyer’s list.

    8. Go to the Annual Tax Sale in Your Area

    Every year, if property taxes aren’t paid by a certain date, each county has a tax sale where investors can bid on properties.

    These events are typically flooded with investors. Make sure you take plenty of biz cards.

    Here’s an extra tip: Tax sales can also be a great way to diversify yourself in real estate related investments. Talk to someone at your local county courthouse to find out how tax sales work in your state.

  9. Another exceptional post, Patrick. You’re a content machine!

    Number 3 is exactly how I built my buyers list initially – placed a phantom ad, and BLAMO…lots of calls from other investors, hungry for deals.

    Also a great follow-up tip from Dusty in his comment.

    Don’t forget when you talk to potential buyers to find out what their focus is…are they rehabbers? landlords? Those are preferable to other wholesalers…although other wholesalers can often help you sell a deal for a piece of the action.

    Anyways, good stuff!

    …jp

    jp | REI Tips’s last blog post..Real Estate Purchase Contract…Undressed (Free Download, Plus Video)

  10. Patrick Riddle says:

    I appreciate it JP!

    Hey everyone, if you haven’t already, check out JP’s blog. He commented right above this one.

    His blog has some great content and resources.

  11. Ronald says:

    great information Patrick, I read a lot of your stuff I’M poor as a church mouse and I’m trying to get started on doing my first deal, I’ll make it yet probably wholesale a deal Thanks much

  12. Steve Hoge says:

    Ghost ads…so you’re basically lying, right?

  13. patrickriddle says:

    No Steve, it’s not lying.

    In the ad above, it doesn’t say that the deal described is available right now. Maybe that’s the specific niche that an investor who runs the ad is focusing on… and will have many opportunities like it in the near future.

  14. Galyna says:

    If you are interested in buying a commercial property in Ukraine contact me galina.bozhokoleg@gmail.com