Real Estate Wholesaling: How to Find the Buyers and Win

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on Aug 28 in BestTransactionFunding

Winning big in wholesaling houses is increasingly becoming about having the buyers. So where are they, and how can real estate investors harvest vast amounts of end buyers for their deals?

At the peak of the last housing boom some wholesalers were pocketing $1M a month flipping houses. Homes could literally be picked up on the open market and turned for $50,000 to $100,000 spreads without lifting a hammer to any DIY work. Those that made the most were those that had the buyers lined up.

While end buyers may be a little savvier, informed and demanding today, and asset prices are rising again, there will be no shortage of deal volume for those with significant pools of ready and qualified buyers.

Some housing markets have continued to see foreclosures increase for the two years through mid-2014. Even strongholds like Southern California which had reported default activity slowing, was revealed to have seen a new uptick in foreclosures in the summer, according to RealtyTrac. There are still plenty of deals from HUD, auctions, in bulk from other investors, and even the MLS, many just coming online after sitting vacant for years. However, even as these prized distressed property types fade, robust appreciation and demand will keep wholesalers flush with inventory and potential deals.

News this week from one of the new conduit lenders providing blanket mortgages for single family rentals, that it is slashing underwriting requirements on multifamily loans is likely a trend which will continue to spill over to the residential home loan market. Giving the green light to borrowers with charge offs, bankruptcies, foreclosures, and credit scores as low as 600, we are definitely approaching subprime underwriting territory again. This will open the flood gates for both first time and returning home buyers.

With easy access to unlimited flash funding for wholesaling from BestTransactionFunding.com the only obstacle between investors and their goals is having buyers in place.

So where are the buyers? How can wholesalers continue to compete as brokerages consolidate and strengthen branding, and Zillow begins rolling out its strategy in the wake of the Trulia buyout?

LIVE EVENTS

While many investors have retreated to their own caves, in front of giant monitors, and settled for webinars in recent years, live events continue to provide fertile ground for deal making. Attendees get pumped up by other speakers and are in the optimal zone to take action, while many are already flying in with blank checks to write for attractive acquisitions.

GROOMING RENTERS

Big thinking, forward thinking property investors shouldn’t ignore renters. The competition you envy for the business they are doing today, is often a result of years of planting seeds and fertilizing. Take note. Get ahead, and start grooming entire complexes of renters to become home buyers over the next 24 months. Reaching out through simple mediums such as door hangers and home buyer education seminars can do wonders.

TAP THE REAL ESTATE GURUS

Many real estate investing ‘gurus’ have gone to all the trouble of developing education programs, creating seminar materials, writing books, and going on the speaking circuit just to build massive deal funnels. Of course, very few of their students will be top producers. So stepping in with a silver platter of good wholesale deals could be just what they ordered. Plus, they may have incredible resources for buying future deals.

SHAKE UP YOUR ONLINE MARKETING

To win in online real estate marketing today, you’ve got to be willing to be different, and flexible. Facebook has officially snubbed real estate marketers, and Google will constantly change its search algorithms and rankings. Forget all the rules (well most of them), and ‘must-haves’ and just focus on solving problems, being interesting, and being unique. You can always bulk up your inflow of buyer leads on-demand, at any time with Google Adwords.

GET HYPER-LOCAL

The irony of the internet, and the billions being spent on online real estate marketing development, is that it is essentially all trying to take us full circle back to being local and personally connected. Online marketing is great, often can produce the best ROI, and can be essential when working long distance. But, if investors got out a little more, left their devices at home and had more conversations, engaged in more community activities, and even just had more people over for dinner or to weekend BBQs and pool parties, they might find they are able to develop masses of new relationships with local buyers, and create bonds so strong no internet company is going to break, regardless of how big it is.

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