If I Were Just Starting My Real Estate Wholesaling Business

If I were just starting my new real estate wholesaling business, I’d start off exactly like this. This is important stuff. So, take your eyes off of American Idol for a second and pay attention.

1. Find Your City’s Wholesale Real Estate Buyers

Sounds easy enough, right? Uh… not so fast, my friend. It can be easy, but that doesn’t mean it will be easy. If you want to get a beat on who is actively buying wholesale property in your city, you need to be proactive. They aren’t going to seek you out. You need to seek them out…

Here is what you do first. One, get yourself 100 blank, white, 24 x’ bandit signs, with metal stakes. These are available all over the internet. Just Google “blank bandit signs.” My recommendation? Contact the company by phone. I buy my signs from Sign Warehouse (signwarehouse.com). And speaking to a sales rep sometimes has perks, like free shipping. My rep, Stephanie Johnston, used to cut my shipping all the time. And these boxes are heavy…

Ok, you’re 100 blank bandit signs have arrived. Now, take 30 out, and write this on them:

$.30 on the dollar! must sell now!! (local # from patlive.com)

Heck, if you wanted to put 40 or 50 out, I say do it. The more the better. And why do I say to put $.30 on the dollar? Because unless you live in one of only two states in the U.S. that are experiencing the worst economy since the Great Depression, that’s a really, really good deal. Why “must sell now?” Because that creates urgency. And we want people to think they need to act, and fast. For all they know, the property could be in foreclosure. Or, the property could just be an incredible wholesale deal. Whatever the reason, action needs to be taken, quickly, in order to get it.

Why use a local phone number from patlive.com? Because it’s untraceable, and in most American cities, bandit signs are illegal. And, unless you want your city’s local code enforcement calling you, you better have an untraceable number. Trust me, they won’t be calling to buy your property. They’ll be calling to threaten, and possibly issue, fines. But, they can’t fine what they can’t find. And patlive.com works like a charm.

Why use an untraceable local phone number from patlive.com? Because in most American cities, bandit signs are illegal. And, unless you want the po po, or your city’s local code enforcement, calling you, you better have an untraceable number. And they won’t be calling to buy your property. They’ll be calling to threaten, and possibly issue, fines. If they can’t find you, they can’t fine you. And patlive.com works like a charm.

Ok, they call, get your voice mail and leave you a message. You call back and say…

“Hey Mr. Buyer. This is so-and-so. I got your message you left about my property for sale. Well, a funny thing happened. Literally one hour after putting out those bandit signs, I received a contract on the property and a deposit. However, as soon as I get another great deal, which won’t be long, I’ll personally call you BEFORE I market it to the public. That sound good to you? Cool, let me get your contact info, and I’ll be in touch soon. You’re now on my VIP buyers list.”

And that’s how it’s done.

“But Maestro, I’ve used bandit signs before and they didn’t work. I can’t believe 30 signs will make my phone ring like that.”

Uh, try them again. And, what I just told you to do, didn’t just get pulled from the air. It’s a tactic I use with my students… and not because it doesn’t work. Have faith, grasshopper.

Ok, so you’ve added some new buyers to your short, but active, buyers list. BTW, all you need is 8 to 10 serious, active, experienced, cash buyers, to make a lot of money in this business. That’s it. The rest of the lookie-lou’s you put in an email database and blast to when you get a property that your real buyers pass on…. hoping one pulls the trigger. The days of 200 person buyers lists is over… at least for the smart wholesaler.

Now, jump on the web and find your local real estate investment association (REIA). Here in Tampa, we have two, TBREIA and SREIA, and both are huge. Find one that meets close to your house and go to a meeting. I don’t think you have to be a member to attend, but you’ll only have to pay like $5, most likely. Make sure you use the time after the meeting is over to shake hands, exchange business cards and express your interest in finding cash buyers. And, if you enjoy your experience and believe it will benefit you, join the group and become a member. Again, it’s not that expensive.

Success Tip 1

We’re in this business to make a lot of money.

Success Tip 2

Until you have your buyers list, you can use other wholesalers to broker the sale between you and their buyers.

Success Tip 3

If you have active, reliable buyers, other wholesalers will now come to you. Brokering the sale of a wholesale property is an easy way to make some nice dough…

Success Tip 4

Remember success tip 1… always.

So, you ask, what do I do with the other 70 blank bandit signs?

2. You locate your city’s distressed sellers, contract to buy their house and bring it to your VIP buyers.

You’ve got the cash buyers, right? So, now it’s time to bring them some deals. Take the remaining signs and write this on them:

I’ll buy your house CASH! (patlive.com number)

Make sure you have two local numbers. Some like to use one number, with two options. Like, “If you’re looking to sell your house, hit 1. If you’re looking to buy a house, hit 2.” I’ve never been a huge fan of that, though. I like the two-number system, better.

Remember, placement is important. You want tons of eyes on these signs, but you also want to place them in areas that are desireable to your buyers. So, find places that match those two criteria and stick them in the ground. Make sure they are at places where cars stop. No highway medians, where cars are racing by at 70 mph.

And while you are fielding leads from those “seller” signs, be thinking of more ways to market yourself and your services. However, what I just described to you will definitely give your business a swift kick in the pants right from the beginning. It will give you momentum. And momentum is BIG in wholesaling. If you’re lazy… unfortunately, it will become habit. If you’re hungry, active and aggressive… that will become habit, also. And, the money you make will become addictive.

Have some faith… grasshopper.

Andrew Massaro is the country’s top wholesale real estate coach to the new investor. For coaching services, visit http://tinyurl.com/ygf97l7. He is also the author of the wildly successful e-book, Quick Flips and Fast Cash real estate investing.