Accelerator: 3.2 Wholesale Marketing

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Accelerator
3.2 Wholesale Marketing
Cheat Sheet

Wholesaling is a tool to use for a fast closing and to generate passive income.

Hot zones
  1. Build your list by using Listsource to find the zip codes with the most absentee owners:
    • Hot zones are areas that you focus all your attention and money on to generate leads. 
    • You want to build a list of 1,000 or more addresses. 
  2. The primary focus will be on private sellers as opposed to banks and agents.
  3. Track leads that buy and those that don’t buy, and follow up with sellers:
    • Track bad addresses so that you can remove them from your list to avoid wasting your marketing dollars.
    • Track bad addresses from people who ask for their names to be removed from your list.
  4. From the following options, pick the best one to two marketing channels that suit your time and money, and stay consistent with it:
    • Low Costs:
1. Bandit signs:
2. Drive for dollars:
  • Look for properties in distressed condition, FSBO (For sale by owner), For Rent signs; post bandit signs near the properties. 
  • Research the owner on the property’s county assessment website and send the owner a flyer/ postcard requesting to buy their house. 
  • Record your findings by first making a copy of the Wholesaling Vacant Property Tracker:
    1. Check the county assessor’s website every 30 days for any updates on the owner’s mailing address.
    2. If you’re driving alone and don’t have anyone to help you jot down property information, then use your phone and voice record the property’s address, whether or not there was a FSBO sign, condition of the property, and if you took any photos of the property:
      • Once you get home or to your office, upload the photos you’ve taken to a Google drive folder, listen to your recording and enter your findings in the Wholesaling Vacant Property Tracker.
3. Flyers:

You can use the same language that’s listed on the sample signs and type it on a flyer:

  • Use flyers in (B) areas.
  • Use flyers with lease options:
    1. If the contract is a master lease tenant, you can sublease to another tenant.
      • Master lease means more than one unit.
    2. This is not recommended for absentee owners since they will not see the flyer you posted on the property.
4. Craigslist:

Free to post ads on Craigslist and to respond to other people’s ads:

  • Hire a VA to post and respond to other people’s ads.
5. Birddog method:

The bird dog method is where you outsource to someone to drive around and search out vacant and distressed properties. This person will record their findings on a spreadsheet and present the lead information to you.

  • You can pay them per lead or out of your profit.
    1. It’s recommended that you pay them a flat fee out of the profit or a percentage when you close on a deal.
High costs

With high costs, you’ll need a list:

  1. Wholesaling Vacant Property Tracker:
    • Use this tracker for those you’ve previously contacted but no deal has transpired to date. 
  2. Save time building a list by purchasing a list from Listsource, Propstream, Rocketprintandmail or Batchdriven:
  3. Market to these lists every 30 days for 6 months. 
Direct mail vs cold calling
  1. In terms of reaching out to the owner, you can cold call or mail out a letter or postcard:
    • Direct mail is for someone with an introverted personality.
      1. Once a seller receives your letter and calls you (inbound), consider the seller as motivated.
      2. Direct mail saves time but the service is costly.
    • Cold calling (outbound) is for someone with an extroverted personality:
      1. Cold calling saves money, but it’s time consuming. 
    • For more effectiveness, mail out a letter or a postcard and then call them once the letter/ postcard has been delivered. 
  2. Your budget determines if you should cold call or mail out letters/ postcards:
    • Manually cold call 100 people per day or per week.
    • Use a 3-line dialer like Mojo Dialer that will make 300 calls per hour until someone on the other end answers the phone.
    • Skip tracing software can be used to locate the owner’s contact information for you to call them. 
    • Direct mail costs for your mailing system:
      1. There’s the option to print off postcards or letters, write out the address, place a stamp on the envelope, and mail out yourself, or pay someone $1 per letter to address the envelope, stamp it, and mail out the letter/ postcard at the post office.
      2. There’s the option to use Click2mail or Reipro whereas you don’t have to print and mail because it’s done for you for a fee: 
County lookup

Find seller’s information by looking online at no cost to you:

  1. Search probate, evictions, and divorce court cases. Call the administration office of the courthouse for a list.
Probate leads

When someone passes away and the court is deciding on who should get the property, the deceased names  are recorded onto a list:

  1. Call the county administration building and ask for the list.
  2. Mail out a letter or postcard to the listed address of the deceased person, as well as to the personal representative and acknowledge the death, but advise that you’re interested in purchasing the home.
Evictions
  1. Go to the clerk of courts and search the municipal area and once you find it, select civil. 
  2. The eviction classification would be for non-payments of rent. 
  3. Also, select a 2-day search. 
  4. Market to the landlord to see if they want to sell.
Divorce

Divorce often leads to selling off assets:

  1. Mail out a letter/ postcard to both parties.
  2. Go to the Court of Domestic Relations and search for the judge’s name in the clerk of courts.
  3. Find out the attorney’s information and mail out letters to the attorney as well.
Absentee owners that are out of state
  1. This may be your biggest list. 
  2. This will also be your lowest response rate.
County search
  1. Doing a county search helps you build your own list.
  2. Go online and search using these variations: county assessor, property records, auditor, and/or recorder to find out who the owner is of a property you have the physical address for:
    • Enter the physical address of the property and scroll until you see the owner’s information.
    • Once you find out who the owner is, select the sales data page to find out what the property has sold for.   
    • If it’s an inherited property, you’ll need to do an advanced search:
      1. Select the sale amount from the drop down menu
      2. Put in $0 to $100 and click add
      3. Filter the sale date for the past 30 days and click add
      4. Select residential vacant or one family
      5. Select the size of the property
Words of advice
  • If you come across a bank owned property aka REO, do not attempt to use the wholesaling method. 
  • If the deal is financially sound for your budget, you can outright purchase it for the buy-and-hold method as opposed to wholesaling. 
  • When looking up properties, you’ll notice that inherited properties do not have a sales price because the property was gifted.
  • For clarity purposes, call the tax assessor for any breakdown of what the codes mean in relation to the property you’re viewing on their website.

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