7 Ways to Find More Wholesale Deals
If you’re reading this, you likely already know what wholesale deals are, how they can enhance your real estate experience, and how lucrative the deals can be.
But just to be sure we’re on the same page, here’s a primer.
Wholesaling can get you quick income, build your real estate analysis experience, and get you accustomed to using the MLS to find deals, but there’s even more to it.
When you wholesale a real estate deal, you essentially get it under contract for a price that suits the seller, then transfer the contract to someone you know at a premium.
The most essential skills here are knowing what a great deal looks like so that the numbers still work for the end buyer (even after topping on your premium) and networking.
At the end of the day, buyers and sellers are people. The more you know, the more deals you can complete.
With that out of the way, let’s look at some ways to find more wholesale deals.
#1: The MLS – Part 1, the Archives
The MLS (multiple listing service) is an amazing tool for real estate agents, investors, and buyers.
It lists all the real estate deals currently for sale in your market and also has the power of archiving homes that were not bought, taken off the market, or sold at a discount in the past.
Looking at past deals that fell through is a great way to find wholesale deals. In these scenarios, consider the psychology of the seller.
They put the house on the market only to find a reason to take it off the market after it didn’t sell. The biggest obstacle was likely that the Realtor and seller could not find the right buyer.
If you are connected with people who fix and flip homes, are entering a new market, or have an otherwise unique advantage in the market, you may be able to bring a deal to the seller. In other words, you off load the property from their hands and give it to a new buyer with fresh perspectives.
#2: The MLS – Part 2, the Rentals
The MLS can also show you homes that are listed for rent and how long they have been listed for rent.
If homes have been on the market for over 30 days, that means the owner is paying the mortgage on an investment property of theirs.
Chances are, if the place is not taken up quickly, the property needs some repairs in order to meet market demand and fill its vacancy.
These scenarios equate to headaches for sellers.
Again, it will come down to who you know that can be a buyer for this type of deal, but if you are this far into looking at properties to wholesale, I imagine you already have buyers lined up.
#3: Driving for Dollars
Some of the best deals in wholesaling are for distressed properties.
For one reason or another, properties can be forgotten about or ignored to the point that the grass grows tall, vines creep up the sides, and the roof falls apart. Oftentimes, these properties are just sitting out there unmanaged, ignored, and falling apart right in front of you.
Driving for dollars is just what it sounds like. You drive around a neighborhood, looking for homes that stand out as being poorly maintained or abandoned. It is a simple process that can be done on your drive to work in the morning or on your drive home in the evening.
It can be done during any time of day, and there are apps on your phone that can help you. Say you are driving to work and spot a house that looks like it could be a deal. Pull out your phone (when you can safely do so) and place a pin in your maps app on where the property is located. When you have some spare time during the day, pull up that pin and begin researching the property.
Driving for dollars is an opportunity for a wholesaler to research the title work, find the owner, and present them with an opportunity to make money on a distressed asset of theirs. You then give it to a buyer who will clean up the neighborhood by putting a little TLC into the property.
A lot of investors, wholesalers, and other buyers are glued to their computers and not driving the neighborhoods they want to buy in. This gives wholesalers who are willing to pay attention to their surroundings the chance to find diamonds in the rough.
#4: Bandit Signs
While finding deals is important, you also need to find buyers. Bandit signs are a way to find both.
You may be familiar with bandit signs and not even know it. They are the signs that cover traffic light areas or are stuck into the ground near an outdoor walking mall.
Anywhere that a person who has time to read something would go, you will likely see a bandit sign advertising real estate deals.
You have to be careful and lawful with bandit signs. If put in unwanted places, they will be taken down without a moment’s notice. Do your research on where they can go and how long they can be in certain areas.
We will be coming out with a tutorial on how to do bandit signs the right way but, for now, do yourself a favor and try to avoid fines or legal issues.
#5: Network, Network, Network
If you have not started networking, now is the time.
The name of the wholesaling game is who you know. There is no better way to increase the number of people you know than by networking.
And I do not just mean showing up to local meetups, going to church on Sunday, or coaching your child’s soccer team.
Go to all of these outings (and more) and network.
Local real estate investing groups, BNI, online meetings, and social networking sites like Facebook all offer outlets to grow and expand your network. What makes these groups so valuable is that everybody in them wants to grow their network too! They want to meet a wholesaler because real estate agents and mortgage brokers have a network of buyers, sellers, and borrowers that may help you at the end of the day.
Talk about what you are doing both professionally and personally — what your goals are and the kind of person you are. Avoid small talk conversations about the weather or the mundane work week and excite your cohorts with enthusiasm about what it is that you do and, eventually, you will get to how they can help you.
You do not need to go so far as shoving your work down anyone’s throat, but a certain eagerness is contagious to others. Don’t be shy.
#6: Invest in Yourself
Let’s be real — you are not going to start wholesaling in August and be able to quit your day job in September. Like most journeys in life, it takes time.
It takes time to find buyers. It takes time to find deals. It takes time to find Realtors. It takes time to build a pipeline.
While you spend your time crafting a buyers list, showing your worth to Realtors, and creating that sustainable lead pipeline, don’t forget to spend time on yourself. It’s not enough to jump headfirst into your wholesaling business; you must develop yourself alongside your business. Read books, take webinars, schedule one-on-one coffee sessions, and network.
The more you invest into your personal growth, the better your wholesaling business will do.
A key strategy for improving your ability to find wholesale deals is to present your deals flawlessly to your buyers and sellers.
The ability to present a deal to a buyer or seller is just as important as finding the deal. It involves the skill of communicating the research you have completed in order to find this deal — that is, what comps are in the area, market knowledge you have on builders and migration patterns, and any other knowledge you have acquired.
If you can communicate the deal well, that means you know what you are doing. And if you know what you are doing, you are more likely to get a referral from the people you do business with.
Visualizing these presentations can be a helpful step in mastering your craft. Visualizing is not just limited to the presentation of a good deal.
Practice visualizing where other wholesalers have gone to find deals and mentally go through the steps of driving for dollars, doing the title research, and finding comps. This will make you more efficient when it’s time to work.
Better Wholesale Deals Are Out There
If you’re ready to put the time into finding better wholesale deals, you’re ready to level up your wholesale business and start making more money.
Remember, the only thing standing in your way is you — you can always be learning and growing, regardless of how much wholesaling or real estate experience you have.