Subject: Need fast sales? Try this…
We've talked a lot about how to buy bulk REOs and that's important. But to put money in your pocket, you've got to be able to sell properties, too and sell them fast.
Just as bulk REO purchases are different than typical real estate purchases, sales of these properties are different, too. You're not looking to rent these properties out, or fix them up and sell them to families you're looking to sell them to someone else who wants to do that.
You know the difference between wholesale and retail. But here's something a lot of people don't understand: there are lots of levels in between. And that's exactly where you want to be.
What do I mean by that? Bulk REO investors buy in bulk a classic sign of a wholesaler. But they also sell in bulk although usually in slightly smaller packages. So you're buying as a wholesaler and selling to other wholesalers.
Successful Bulk REO Wholesale Investor
I call it being the “wholesaler's wholesaler” and it's the secret to my success in bulk REOs.
Why? Because wholesalers are ready to buy and buy fast. Most serious real estate wholesalers have ready cash and know what they're looking for, so they can pull the trigger fast when they find it. Your job is to reach them and present them with great deals and the fast closings will follow.
How do you find them? It's not hard most of them are out there making themselves know. Look for real estate investors roadway signs and flyers you've seen them before, the ones that say things like “I buy houses”. Look for their listings on Craigslist or in the local paper. Get tied in with the local real estate investor clubs, talk to Realtors, talk to bankers, join real estate investing chat groups online once you're tuned in, you'll be surprised by how many you find.
Then you have to get the word out. You want them to know that you can be a resource for them, you can supply them with good product for their business at a good price. These days, there are tons of free or inexpensive ways to do that. Sure, you can run an ad in the paper something along the lines of “fixer uppers for sale, can buy cheap.”
But there are lots of free ways to reach investors, too: Craigslist, Facebook, LinkedIn, Web sites like rehablist.com and loopnet.com. I recommend using as many streams as possible, to get your name and your portfolio of properties in front of as many people as possible.
It's as simple as entering “5 homes in Atlanta GA for sale” as your status on a social networking site or putting up a weekly posting on Craigslist. Takes a few minutes and costs you nothing but can bring huge rewards.
Once you find wholesale investors, you want to work on building relationships with them. The goal is to generate as much buzz in the market as you possibly can, and cultivate your reputation as “the wholesaler's wholesaler”. Learn each investor's profile which zip codes he prefers, the types of properties he wants to invest in, the type of construction he prefers so you can target your pitches.
You want to streamline the process as much as possible to make it quick and easy for them to buy and for you to collect your check.
After awhile, you'll be able to divide up a bulk REO deal and sell off the pieces of it to different wholesalers in a matter of days because you know how to cherry pick the best properties, and you know just who to offer them to in each market. And as in anything else, success breeds success. Once a few local wholesalers have made money on deals with you, your reputation as the “wholesalers wholesaler” will spread by word of mouth and that's the best marketing campaign of all.