Far too many investors throw away tens of thousands of dollars in their trash cans every single year without realizing it. I’m referring to seller leads which they think are “junk” but could be wholesaled to someone for anywhere from a couple hundred to a few thousand dollars.
For instance, I know several people who only specialize in wholesale deals. If they get a potential lease option lead or a sub-2 lead they just throw it away. Of course, this is very foolish because they could wholesale these leads to people who do sub-2’s (like me) and make a lot of money this way.
In fact, if they were truly smart, they would learn how to do multiple deals that way they could try and make the most money from every seller lead they received. However, I know closing every deal is next to impossible, especially when you get a call from a seller who owns a property nowhere near you.
For example, last week my partner and I got a call from a lady who owned properties all over the country and none of them were even close to the state of Virginia where we live. Now, if these deals would have been “home runs” we would have done them.
However, none of the deals were that great and none of the numbers made sense for us to do the deals ourselves. But, right now, my partner is searching for individuals in these various states who might be interested in these deals.
How is he finding these people?
Well, the first place to look is the local REIA. If you’re looking for REIA’s in Texas, simply Google, “real estate investor associations in Texas.” Once you get the list, find the REIA closest to the property you’re trying to wholesale. After that, go to the REIA’s website and see if they have a message board or a forum where you can post your deal.
If you can’t find any way to communicate on their website, then send the president of the REIA an email and ask him how to send the deal out. Or ask him to pass along the information to the rehabbers and landlords that he knows.
In addition to the REIA, use Craigslist. You can place an ad on Craigslist saying you’re an out of state person who’s looking to get rid of the property fast, and you’ll no doubt get an email or two. Also, one of the best methods to locate investors in a state that’s thousands of miles away from you is to place an ad in the local newspaper.
The ad should say something like “Desperate owner looking to sell house in John Doe subdivision. Dirt-cheap price, call Adam at 555-5555 today.” I can guarantee you if you place that ad, your phone will ring off the hook. However, just like all ads you place, you’re going to have to screen out a lot of tire-kickers before you find a serious investor.
Whatever you do, from now on, start trying to squeeze as much money as you can out of every call you get from a potential seller.