The Maestro is about to drop some knowledge on ya. Look, if I were just starting my new real estate wholesaling business, I’d start off exactly like this. This is important, so take your eyes off of the TV for a second and pay attention.
1. Find Your City’s Wholesale Real Estate Buyers
Sounds pretty easy, right? Uh… not so fast, my friend. Look, a lot of things appear easy, but that doesn’t mean it will be. If you truly want to know who is buying up real estate in your area, you need to be proactive. They’re not exactly going to be kicking your door in. You need to go find them…
Here is what you do… first. One, get on the horn and buy yourself 100 blank, white, 24 x’ bandit signs, with metal stakes. These are available all over the web. Just Google “blank bandit signs.” My recommendation? Contact whichever company you choose by phone. I get my signs from Sign Warehouse (signwarehouse.com). And speaking to a sales rep sometimes has perks, like discounts and/or free shipping. My rep, Stephanie Johnston, used to hook me up all the time. she’s the best.
Ok, you’ve got your 100 signs in. Now, take 30 of those signs, and write this on them:
$.30 on the dollar! must sell now!! (local # from patlive.com)
Heck, if you wanted to put 50 out, that would be just fine. Why $.30 on the dollar? Because that’s a really, really good deal… in most parts of the country. Now, if you live in parts of Michigan or Ohio, that may not work for you. But, for just about every other locale in the U.S., it will. And like gold…
Why “must sell right now?” Because that gives the perception that the buyer must act… fast… if he wants the deal. The property could be in foreclosure. The property could just be a great deal. Whatever the reason, he needs to act quickly if he wants to get it.
Why use an untraceable local phone number from patlive.com? Because in most American cities, bandit signs are illegal. And, unless you want the po po, or your city’s local code enforcement, calling you, you better have an untraceable number. And they won’t be calling to buy your property. They’ll be calling to threaten, and possibly issue, fines. If they can’t find you, they can’t fine you. And patlive.com works like a charm.
Ok, so you have your 30 signs out advertising a fake property. What next? You begin fielding calls. What? You don’t think 30 bandit signs will make your phone ring? It will if you’re advertising a deal for $.30 on the dollar. That’s for sure. Ok, they call, get your voice mail and leave you a message. You call back and say…
“Hi Mr. Buyer. This is Joe Schmoe. I received your message you left about my property. Well, you’re not going to believe this. One hour after putting those bandit signs out, I received a contract on the property and a deposit. I mean, I was actually fielding calls while I was still putting the signs out! However, as soon as I get another great deal, which won’t be long, I’ll personally call you BEFORE I market it to the public. That sound good to you? Cool, let me get your contact info, and I’ll be in touch soon. You’re now on my VIP buyers list.”
And that’s that. Now, is that too difficult for ya?
“But Maestro, I’ve used bandit signs before and they didn’t work. I can’t believe 30 signs will make my phone ring like that.”
Uh… yes, I am. And try them again. Listen, what I just told you to do didn’t just get pulled from the air. It’s a tactic I use with my students… and not because it doesn’t work. Have faith, grasshopper. The Maestro’s got you covered…
Ok, so you’ve got a bunch of new buyers on your short, but active, buyers list. BTW, you don’t need 100+ buyers. All you need is 5 to 10 active, cash buyers. That’s it. And you know these people intimately. The rest you put in an email database and blast to when you get a property that your real buyers pass on…. as a last resort.
Now, get on the internet and find your local real estate investment association (REIA). Here in Tampa, we have two, and they are huge. Find the closest one to your house and go to a meeting. I don’t think you have to be a member to attend, but you will have to pay. Should be cheap, though. Use the time after the meeting is over to shake hands, exchange business cards and express your interest in finding cash buyers. And, if you desire, join the group and become a member. Again, it’s not that expensive.
Success Tip 1
We’re in this business to help people and to make money. Remember that.
Success Tip 2
If you meet a wholesaler who has active buyers, but won’t give them up, take his card or contact information and let him know you’ll be contacting him to possibly sell your properties. He won’t mind. He’ll be making easy money…
Success Tip 3
When you have your VIP buyers list, YOU can broker the sale of a property… and make some nice cash… for doing almost nothing.
Success Tip 4
Remember success tip 1.
So, now that you have the buyers, what’s to come of the other 70, or so, bandit signs?
2. You locate your city’s distressed sellers
Well, you’ve got the buyers, now it’s time to bring them some deals. Take those 70 signs and write this on them:
I’ll buy your house CASH! (patlive.com number)
Make sure you have two local numbers. Some like to use one number, with two options. Like, “If you’re looking to sell your house, hit 1. If you’re looking to buy a house, hit 2.” I’ve never been a huge fan of that, though. I like the two-number system, better.
Remember, placement is important. You want tons of eyes on these signs, but you also want to place them in areas you want to buy. Find places that match those two criteria and stick them in the ground. Make sure they are at places where cars stop. No highway medians.
And while you are fielding leads from those 70 signs, you should be thinking of more ways to find buyer and deals. However, what I just described to you will definitely give your business a kick in the pants right off the bat. It will give you tons of momentum. And momentum is HUGE in wholesaling. If you’re lazy… it will become habit. If you’re aggressive… that will become habit, also. And, the money you make will become addictive.
Keep the faith… grasshopper.
Andrew Massaro is the country’s top wholesale real estate coach to the new investor. For coaching services, visit http://tinyurl.com/ygf97l7. He is also the author of the wildly successful e-book, Quick Flips and Fast Cash real estate investing.
Technorati Tags: Real Estate, real estate investing, real estate wholesaling