As a real estate investor, you're always on the lookout for great wholesale deals. These opportunities are out there, but the challenge is knowing where to look and how to secure them. This comprehensive guide brings you five effective ways to find real estate wholesale deals. With these strategies, every resourceful real estate investor like you can thrive in the wholesale real estate market.
1. Local Real Estate Networking Events
As the saying goes, "Your network is your net worth", and this is especially true in the real estate investing industry. Real estate networking events are gold mines for potential wholesale deals. They're a congregation of everyone involved in the industry: wholesalers, flippers, landlords, contractors, and even money lenders.
These events are the perfect place to establish meaningful and mutually beneficial relationships. Exchange contacts, offer value, and most importantly, let them know you're in the market looking for wholesale real estate deals. You'd be surprised at how many deals could come out of these networking events.
2. Online Real Estate Platforms
Thanks to the technology, finding real estate wholesale deals has never been easier. Online real estate platforms offer a wealth of opportunities to find and secure properties below market value. Sites like Zillow, Craigslist, and DealMachine are particularly resourceful for investors like you zealously looking for wholesale deals. You can pull a list, drive for dollars, or virtually drive for dollars and reach out to potential owners with DealMachine.
While exploring these platforms, keep an eye out for potential wholesale deals by filtering for properties listed under foreclosure, bank-owned properties, short sales, or properties sold 'As Is'. These are the type of deals that could potentially be negotiated into a wholesale deal.
3. Direct Mail Campaigns
Direct mail campaigns might seem like an old-school method in the age of digital marketing, but they remain a highly effective way to find wholesale real estate deals. However, you need to be strategic about your mailing list and your messages.
Compose a compelling letter articulating your intent and interest in buying properties for cash quickly. Circulate this letter to potential sellers. These could include absentee owners, owners in pre-foreclosure, probate properties, individuals with high equity, and more. Luckily in DealMachine, there are default postcard templates and messages to help you with that messaging. Or if you are looking to create a custom piece of mail from scratch that is also an option.
4. Driving for Dollars
'Driving for dollars' is not just a catchy phrase but a proven strategy for real estate investors to spot potential wholesale deals. You literally drive around neighborhoods, identifying distressed properties that appear to be undermaintained or abandoned. These properties could potentially lead to wholesale deals directly with the owner or through a real estate auction.
Be sure to look for signs such as overgrown lawns, piled up mail, boarded windows, or any signs of neglect. But remember, while you're driving, safety comes first!
Before the days of technology, this strategy was done with just a pad of paper and a pen. But like mentioned in the online section you can do this with software like DealMachine. In the app, you can add a lead, tag it, start mail, or call the property all while you are sitting right in front of it.
5. Working with a Real Estate Agent
Last but not least, working with a wholesaling real estate agent may be one of the most efficient ways to find great wholesale deals. These agents are well-versed professionals who understand the local market, have access to MLS listings, and possess direct contacts with potential sellers.
Remember to be clear about your parameters and the type of properties you're looking for. In return, they'll provide you with leads, and some may even negotiate the deals on your behalf.
As you seek these wholesale deals, remember, the real estate investing business is not always about the numbers. It's about establishing and nurturing relationships, understanding the local real estate market, and persistently pursuing deals. So go out, implicate these strategies, and as always, happy investing!
