Marketing your wholesale deals is contingent on three things: providing potential buyers with informative details, informing those on your buyers list that a property is for sale, and making sure it is visible to the general public. The concept is relatively simple, and for good reason—it just is. However, the devil is in the details. Whether or not marketing your next wholesale deal to a buyers list pans out the way you intended is dependent on the execution of the strategy. That said, there is a system that is capable of eliciting proven results. If you want to market your wholesale deal to a buyers list, there are a number of steps that must be taken.
A wholesale deal is a short-term real estate investment strategy typically utilized by investors to realize relatively fast profits. In their simplest form, wholesale deals will task investors with finding properties that can be purchased for less than their market value. Once a deal has been identified, wholesalers may execute one of two wholesale strategies: the “contract assignment” strategy or the “double close.”
The double close strategy, as its name suggests, will literally have the investor buy the home from the seller so that they may turn around and sell it for a profit to another investor in a short period of time. The assignment of contract strategy, on the other hand, won’t require the investor to purchase the home at all. Instead of actually purchasing the property, wholesalers may sign a contract with the property’s current owner which gives the investor the sole rights to purchase the home. Otherwise known as a purchase and sale agreement, the contract may then be sold to a subsequent end buyer for a small profit. That’s an important distinction to make, as the assignment of contract strategy will have wholesalers sell their rights to buy the home (not the home itself).
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Any investor serious about making a name for themselves in the wholesale industry needs to have a buyers list. However, those who are new to the real estate landscape may not be in a position that has buyers lining up to purchase their properties. If this is you, don’t worry; you are not alone. It is important to note that every investor got their start somewhere, and none of them started with a buyers list. Fortunately, there are ways to market your wholesale deals that don’t include referring to past contacts. While building a buyers list should be your ultimate goal, there are several viable marketing options that don’t include talking to previous contacts, not the least of which include the following strategies:
In the event investors already know how to find buyers for their wholesale properties, they are well ahead of the game. However, there are several different marketing strategies that may elevate their business to a whole new level. If you want to market your deals with a higher level of success, try implementing some of the following strategies:
The best wholesale deal investors are well aware of the fact that their most trusted marketing asset is none other than their own buyers list. No other tool has the ability to sell a wholesale deal more efficiently than a list of interested contacts that you have already developed a working rapport with. That said, not unlike any other tool real estate wholesalers have come to rely on, a proper buyers list must be cultivated, maintained and organized. If yours isn’t, I highly recommend doing so before you even consider taking on your next deal.
Provided your buyers list is in need of an overhaul, don’t hesitate to do a little spring cleaning. Be sure to update where necessary, but consider getting rid of contacts that are no longer worth keeping. Their presence on your list simply makes it less efficient, and therefore expendable. Say, for example, your list consists of a lot of old emails. If by chance they are no longer valid, there is a good chance they are hurting your deliverability rate. The valid emails on your list could end up being ignored without you even having any clue.
Once you have determined which contacts are worth keeping, it’s time to preform some routine maintenance. Double check that you have all of the information you need. Are you fully aware of they types of deals each contact is interested in? Are they even interested in a wholesale deal? Keep on top of your contacts, and be mindful of their intentions. The more you know about what they want, the easier it will be to offer them a deal in the future.
With that in mind, you must also understand that peoples’ intentions change periodically. What may have been a priority for them last week could no longer have any relevance. That’s why it is important to remain in constant contact with those on your list. In fact, regularly engaging with the contacts on your list is just as important as maintaining the list itself. Send out emails with updates to those who may be interested, or even just to catch up. Doing so will not only allow you to keep up with what the people on your list are looking for, but it also has the potential to keep you at the forefront of their minds—something I have yet to find a better replacement for.
At the risk of sounding cliché, how you do anything is how you do everything. Get in the habit of asking for all of the information you may need in the future. It could be the difference between landing a deal and not.
I want to be perfectly clear here; the easier it is for your prospective buyers to digest the information you place in font of them, the better. Any attempt to barrage them with numbers and data that don’t have any context may actually scare them away, and could potentially prevent you from making the connection you had hoped for. Instead, you need to gather all of the information you have on a property and combine it into one concise, easy to read packet. In other words, you need to make it easy for any potential buyers to make a decision.
Your main priority should be to provide them with information that is easily accessible and quick to digest. Time is money in the real estate industry, and the sooner they can come to a clear decision, the better. I recommend printing out the following information and creating a wholesale deal marketing package:
The next time you attempt to wholesale a deal to your buyers list, I can assure you it is in your best interest to offer it to your most serious buyers first. While the amount of people you intend to inform could vary depending on the type of property, I highly recommend starting with 5 to 10 buyers that you know are both interested and capable of closing fast. It’s not a coincidence that many investors tend to sell to the same buyers over and over. Once you have developed a working rapport with a trusted individual or company, you will understand how important this relationship is.
Real estate, as I am sure you are aware, is a people business. If you can become a trustworthy wholesale supplier to a select few buyers, there is no reason for them not to continue doing business with you. In the end, everyone wins, and you most likely already have a buyer lined up before the property is under contract.
In the event your most serious buyers pass on the opportunity, there is always the chance someone else on your buyers list will be interested. After all, that’s what it’s there for, right? However, instead of calling each potential buyer, send out a massive email blast. There is no better way that I am aware of to reach such a broad audience in such a short period of time.
Ideally, the email blast will direct them to your website, where they can gain access to all the information I mentioned in step two. However, for the email to work, they must first open it. Provided you have maintained a working rapport with those receiving the email, this shouldn’t be a problem. If the opposite is true, you will need to come up with a catchy headline. You must enable your email to stand out from the myriad of emails they are likely to get on a daily basis.
One thing I like to do is to send a follow-up email immediately after someone accepts the deal. In doing so, a sense of urgency is created, and people will presumably act faster upon receiving your next email if they know someone else capitalized on a deal that was offered to them.
Wholesale deals represent one of the best ways for investors to break into the real estate industry. Due, in large part, to their low barrier of entry, wholesale deals are the preferred exit strategy for new investors. It is worth noting, however, that while easier to execute than their rehab counterparts, they still require an acute attention to detail and hard work; namely, finding buyers for your respective properties. Fortunately, the strategies listed above should make things a lot easier.