Wholesaling is an excellent way to jump-start a budding real estate career and a great option for those with limited time and revenue. However, before you can collect that coveted finder’s fee, you have to know where to find quality wholesaling leads. This can prove challenging. Many investors are familiar with billboards and yard and vehicle signs, but what you need are the best sources for wholesale properties.
Wondering where the best sources for wholesale properties are? Check out our picks below.
Driving for Dollars
If you are well-versed in the real estate industry, you’re familiar with the term driving for dollars. It may be an old-fashioned strategy to hop in your car and drive around looking for properties, but it can be extremely effective. As you familiarize yourself with your local market, be on the lookout for signs of neglect. Take note of these properties and reach out to the owner and make an offer. Signs of neglect include:
- Vacant property
- Boarded up windows
- Fire damage
- Uncollected trash
- Insect infestation
Expired MLS Listings
This is perhaps one of the most common sources for wholesale properties. With this strategy, investors browse the multiple listing service (MLS), searching for expired listings to swoop in on. Eager to close a deal on their distressed property, these sellers may be willing to compromise on the details like the asking price.
Keep in mind is that these motivated sellers are often frustrated that their property didn’t sell. The best way to assist them is to discuss what the previous investor did and tweak their process. Or consider detailing how your strategy will be different and more successful.
Network with Real Estate Agents
Sometimes the best sources for wholesale properties are real estate agents or brokers. Every agent has a niche market that they serve, which leads them all over the city. As they show properties in their areas, they are likely to come across wholesale properties. Think of them as your passive locators. Have a particular area you’re scoping out? Let your broker friends know about it.
It can make a world of difference. Plus, agents can inform you of wholesale properties before they’re made public. In addition to locating wholesale real estate properties, agents can also provide excellent insight into the neighborhood, school, and taxes. This is beneficial information, as it can come in handy when selling the property to an end buyer.
Target Absentee Owners
While on the prowl for distressed properties to sell, sometimes you may come across places with absentee owners. These are individuals who own properties in one state or country and live in another. They are one of the best sources for wholesale properties because you can appeal to them by highlighting their struggles as an absentee owner.
Direct mail is the more impactful way to reach out to absentee owners. They include sending postcards, brochures, and catalogs. Although a slower lead generation method than cold calling, direct mail is still a successful strategy. By sending out mailers, you can attract a list of interested sellers by planting the seed of a property sale long before they’ve considered it.
Who better to know about the goings-on in a neighborhood than service providers? These individuals are always in communities, making them one of the best sources for wholesale properties. Service providers are but are not limited to cleaning services, cable installers, carpet cleaners, pizza restaurant workers, meter readers, trash collectors. The resources are endless; take your pick. They are some of the first people to know if a home is abandoned, cleaned for future sale, etc.
Another tried-and-true technique to garner more wholesale real estate leads is to check out your neighborhood estate sales. Many people look for these properties to catch a deal without considering the home itself as being for sale. In some cases, the sellers of these properties are motivated sellers.
These are individuals who were given the property, have taken ownership of the property, or are selling their property for various reasons. Not everyone has the time or money to spend working with an agent to sell their property and resort to other methods.
Foreclosures or auctioned properties are often one of the best sources for wholesale properties. In fact, some wholesalers only rely on property auctions for revenue. It is not uncommon for these distressed properties to be listed at a severely discounted rate, i.e., below the market rate.
These properties can also be priced at a value equal to or less than the mortgage’s remaining balance. To maximize your revenue on these properties, we highly recommend doing your research on how to navigate property auctions before making offers.
Word of Mouth
One of the cheapest yet most powerful sources for wholesale properties is word of mouth. It is an underused lead generation tool that you may forget to consider. If you have friends, family, or past customers who have expressed happiness with your services, don’t be afraid to ask for referrals or testimonials. The better the work you do as an investor, the more willing they are to shout your praises. Happy customers are your best advocates and also more likely to share with others who need your services.
Another uncommonly considered source for wholesale properties is attorneys. They know if someone needs to sell their home before anyone else in the market does. Sometimes before they’re publicly listed. They know if someone is getting divorced, has died, is going through bankruptcy — you get the picture.
Striking up a relationship with an attorney can be mutually beneficial. They can serve as one of the best sources for wholesale properties, and you can recommend their services to friends, family, and other property owners.
Call Motivated Sellers
Whether you’re trying to find your first wholesale property or find your next one, it can be challenging to find leads worth pursuing. We hope that with our roundup of the best sources for wholesale properties, you find yourself inspired once more to hunt for leads.
Call Motivated Sellers is at your service if you need help vetting your list of wholesale real estate leads. Our team of cold calling experts can help you streamline your process and return quality ready-to-sell properties. We can also guide your strategy.
Are you ready to work together? Contact our team today, and let’s chat!
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