The following are some profitable Real Estate Wholesaling Tactics that I use for finding motivated sellers:

Real estate wholesaling tactics for finding motivated sellers

Wholesaling real estate is a popular way for most investors to get started because it requires very little money and no credit on behalf of the wholesaler.  In fact, most of your expenses as a wholesaler will come from your advertising.  Therefore, if money is an issue, you should be able to create an effective, profitable marketing plan for less than $100 per month if you follow my real estate wholesaling tactics for attractive motivated sellers:

Real Estate Wholesaling Tactics – Sellers | Networking with Realtors

It is important to have a Realtor with access to comps on your team. They can also inform you when properties have been sitting on the market for a long time.  If you provide the Realtor with specific criteria on what you’re looking for (price range, neighborhood, square footage, DOM,  etc…), then can have an automated report sent to you on a daily or weekly basis.  The best part is that any marketing compensation is paid on the back end, so you wouldn’t have to come out of pocket for services upfront, which fits any wholesaler’s budget.

Real Estate Wholesaling Tactics – Sellers | Bird dogs

A bird dog is someone who hunts down a distressed property and brings the information back to the hunter, or in this case, the wholesaling investor.  A bird dog is anyone who is familiar with home owners and neighborhoods, such as landscapers, painters, contractors and even people who work at hardware stores.  These are the folks who work with people who may be interested in improving their houses to be able to sell and are a valuable asset to your team.  The only time you would compensate a bird dog is after a property has been successfully transacted.

Real Estate Wholesaling Tactics – Sellers | Farming an area

The most effective way is to find distressed properties is to get out, drive, or ‘farm’ the area, and become familiar with properties, neighborhoods, and pricing in your area. Take a different route to work every day, carry with you a notebook and pen, and do the following:

• Grab every flyer of a property that is for sale (start understanding the market value in that neighborhood)
• Take note of anything out of the ordinary (a deep discount in the price of a property)
• Write down addresses of any houses that look abandoned (weeds in driveway, newspapers on the driveway, boarded up windows, unkempt lawns, etc…)

It becomes you job to know about everything that happens in your territory.  If a house goes on the market, you should now about it immediately, you should know the price and whether or not it is within the usual price range. These abnormalities in pricing can be your ticket to finding a great deal. While time consuming, the knowledge you get with farming an area is priceless.

Real Estate Wholesaling Tactics – Sellers | Bandit signs

Check with your city ordinance before implementing this strategy.  Bandit signs are simple signs that you put out on a Friday and pick up Sunday night that advertising that you buy houses.  The message is simple: We buy houses / phone number.  Red & white or black & yellow have been most effective.  Have them call you and then you screen the call.  An initial investment for 100 signs, stakes, glue, & nails will run you about $200, but if you put out and pick up every week, 100 signs should allow you to place 25 out a week for 2 months.  Overall, a pretty good investment to make in marketing

Real Estate Wholesaling Tactics – Sellers | Summary

In conclusion, the two best functions of a wholesaler’s marketing plan is to invest as little capital as possible and yield high results.  Networking with Realtors, utilizing bird dogs, farming an area, and bandit signs meet these requirements.  However, it is important to consider that the tips listed above require a great deal of time commitment from the wholesaler, and prior to committing to utilizing these real estate wholesaling tactics for finding sellers, it’s best to make sure you can commit to 10-20 hours a week of marketing.

Image: Salvatore Vuono / FreeDigitalPhotos.net

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