The Maestro is about to drop some knowledge on ya. Look, if I were just starting my new real estate wholesaling business, I’d start off exactly like this. This is important, so take your eyes off of the TV for a second and pay attention.
1. Locate My City’s Wholesale Buyers
I know, I know. Sounds easy, right? Uh… hold on a sec, my friend. Look, just because something seems easy, doesn’t mean it will be. If you want to find out who is buying up wholesale real estate in your area, you need to be proactive and aggressive. They’re not exactly going to be kicking your door down. You need to get out there and find them…
Here is what you do… first. One, get on the horn and buy yourself 100 blank, white, 24 x’ bandit signs, with metal stakes. These are available all over the web. Just Google “blank bandit signs.” My recommendation? Contact whichever company you choose by phone. I get my signs from Sign Warehouse (signwarehouse.com). And speaking to a sales rep sometimes has perks, like discounts and/or free shipping. My rep, Stephanie Johnston, used to hook me up all the time. she’s the best.
Ok, you’ve got your 100 signs in. Now, take 30 of those signs, 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, that would be just fine with me. Why do I say to put $.30 on the dollar? Because unless you live in parts of Michigan or Ohio, that’s a really, really good deal. Why “must sell now?” Because that creates urgency and gives the perception that the buyer must act… fast… if he’s going to get his hands on this great deal. For all he knows, the property could be in foreclosure. Or, the property could just be a great deal. Whatever the reason, he needs to act quickly if he wants 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, 30 signs won’t generate that many calls. I’ve used bandit signs before and they didn’t work.”
Uh, use them again. And, what I just told you to do, didn’t just come to me. It’s a tactic I use with my students… and it works. Have trust, grasshopper.
Ok, so you’ve got a bunch of new buyers on your short, but active, buyers list. BTW, all you need is 5 to 10 serious, active, experienced, cash buyers. That’s all. And you should know these people intimately. 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.
Now, get on the internet and find your local real estate investment association (REIA). Here in Tampa, we have two, and they are huge. Find the closest one to your house and go to a meeting. I don’t think you have to be a member to attend, but you will have to pay. Should be cheap, though. 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 desire, join the group and become a member. Again, it’s not that expensive.
Success Tip 1
We’re in this to make money. Remember that always.
Success Tip 2
If you meet a wholesaler who has active buyers, but won’t give them up, take his card or contact information and let him know you’ll be contacting him to possibly sell your properties. He won’t mind. He’ll be making easy money…
Success Tip 3
When you have your VIP buyers list, YOU can broker the sale of a property… and make some nice cash… for doing almost nothing.
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
Well, you’ve got the buyers, now it’s time to bring them some deals. Take those 70 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.
And, placement is important. You want tons of eyes focussed on your 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 (facing the oncoming traffic…). Make sure they are at places where cars stop. No highway medians, where cars are racing by at 55 mph.
And while you are fielding leads from those 70 signs, you should be creating a more well-rounded marketing mix. However, what I just described to you will definitely give your business a kick in the pants right off the bat. It will give you momentum. And momentum is HUGE in this business. If you’re doing nothing… it will become habit. If you’re active and aggressive… that will become habit, also. And, the money you make will become addictive.
Keep the 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.
