Wholesaling real estate in smaller cities can offer unique opportunities alongside distinct challenges. As traditional sources like auctions become less reliable, investors must explore new methods for generating leads. Driving for dollars, a strategy involving scouting for distressed properties, is especially valuable in these markets.
Leveraging technology, such as the DealMachine app, can further enhance the effectiveness of these methods by streamlining processes like property owner lookups and marketing efforts. This blog delves into how investors like Ryan Fuller adapt to the shifting landscape of smaller markets, ensuring success through innovative strategies and consistent application.
The Challenge of Finding Deals
One of the main challenges that the Ryan faced was finding enough deals to sustain his business. He had previously relied on auctions and tax lien properties, but after the COVID-19 pandemic, that source of leads had dried up. Ryan was looking for new ways to generate leads and get his business back on track.
"I just feel as though I need more leads, and I never really purchased leads." - Ryan Fuller
The Power of Driving for Dollars
The hosts suggested that Ryan start by driving for dollars to generate a list of leads that he could work from. Driving for dollars involves physically driving around a neighborhood and identifying properties that appear to be in distress or in need of repair. These properties can then be added to a list and targeted with direct mail campaigns.
Ryan Haywood shared his own experience with driving for dollars in his market of St. Joe, Missouri, which has a population of less than 100,000 people. He explained that he and his team add 250 new leads per week through driving for dollars and then send out an equivalent amount of direct mail.
"We drive for dollars every week. We add 250 leads a week and drive them for dollars, and then we send out the equivalent in mail." - Ryan Haywood
The Benefits of DealMachine
The hosts also discussed the benefits of using the DealMachine app to streamline the process of finding and tracking leads. The app allows users to easily add properties to a list while driving for dollars and then provides unlimited access to property owner information and skip tracing data.
David Lecko explained that the app has evolved over time to include a database of every person in the United States and their associated properties. This allows users to easily look up property owner information and contact them directly.
The Importance of Consistent Marketing
Ryan Haywood also emphasized the importance of consistent marketing efforts to generate leads and close deals. In addition to driving for dollars and sending out direct mail, his team also has a process for following up with old leads every three months.
He explained that they use DealMachine as a semi-CRM to track active leads and keep track of properties that are under contract or pending. This allows them to stay organized and ensure that no opportunities slip through the cracks.
The Takeaway
The main takeaway from the episode was that wholesale real estate is possible in smaller cities and markets. Ryan Fuller realized that he didn't necessarily need to be in a major city like Philadelphia to find success and that there were opportunities in smaller markets outside of the city.
Ryan Haywood's experience in St. Joe, Missouri, with a population of less than 100,000 people, proved that it was possible to consistently generate leads and close deals in a smaller market. The key was to have a consistent marketing strategy and to utilize tools like DealMachine to streamline the process.
"It looks like, I mean, I don't have to be in a big major city like Philly. It's possible to do smaller markets, like, outside of the major cities." - Ryan Fuller
Final Thoughts
Wholesaling real estate can be a lucrative business, but it requires consistent effort and a solid marketing strategy. Driving for dollars and utilizing tools like DealMachine can help investors generate leads and streamline their processes, even in smaller markets.
The episode featuring Ryan Fuller highlighted the challenges that many real estate investors face, but also provided valuable insights and strategies for overcoming those challenges. By staying consistent and utilizing the right tools and strategies, it is possible to build a successful wholesaling business in any market.
About Benjy Nichols
Benjy has been a media specialist at DealMachine for the last 2.5 years. He produces, writes, shoots, and edits our media content for our member's DealMachine and Real Estate education.