Wholesaling Real Estate can lead to a certain amount of “marketing incest”. Building a “buyers list” that consists of other wholesalers can be a good start, but someone, at some point, is going to have to find an “end-buyer” who will actually use the wholesale property for its designed purpose: To LIVE in it.

Granted, that could be a renter or an owner occupied buyer. So in case it’s a renter, the end buyer we’re looking for would be a landlord or “buy-and-hold” type real estate investor.

Here is an astonishing concept:

“The ideal home buyer now — in a reverse of what was true for years — is a renter who is not burdened with a house. Such a buyer will need a down payment from somewhere, and he or she will need enough income to meet the monthly payments for the foreseeable future, including any increase in adjustable rates that seems probable.

“But not owning a home, which may be hard to sell, is a big plus.

“A year ago, having a home that had appreciated in value meant that an owner could trade up to a more expensive home. Now it means that the homeowner cannot move until the old home is sold, and that is getting more difficult.

“First, the seller has to find a buyer who can get a mortgage. Second, the price has to be high enough to pay off the old mortgage and leave enough cash for the down payment on a new home. Both were taken for granted a year ago. In many markets, neither is a sure thing now.”

- Floyd Norris (NY Times, 1/18/2008)

Makes sense to me. So the next step in our buyers list building effort has to be getting some landlord/buy-and-hold investors, and some renters with a down payment on…

Stay tuned and have a great weekend!

OK, now that you got started and built your investor list, let me show you two more great ways to get REAL buyers on your list:

1. Go to Trustee Sales in Your Area

The people that show up there are REAL buyers. Why? Because at trustee sales you have to pay cash (or cash equivalent) for the ENTIRE PURCHASE PRICE!

So anyone who shows up at a trustee sale with the intention to actually buy a property that goes to auction is a REAL buyer. They are motivated to buy the right kind of deal.

And you know what? Most of the time they get disappointed, because either the properties that they have targeted are taken off the list for any number of reasons, or the bidding process turns a juicy equity spread into a marginal deal for them.

What a great way to build a list of HUNGRY BUYERS that would jump on any of the great wholesale deals that you’re going to bring them.

So what do you do? Bring business cards or postcard-size business billboards with your phone number and hand them out. Talk PERSONALLY to as many people as possible, and ask for their buying criteria and for their business card.

2. REI Clubs (Online and Offline)

Your local REI clubs are another good source for building your list. Look online to see if they have web sites. Some clubs even run message boards where members can post and share deals and other information. Sign up, participate by leaving helpful comments, and use a two-line “signature” after your name in each comment you post. The signature could look like this:

Thomas Bartke
I Do Wholesale Deals! 626-355-6942
http://CaWholesaleDeals.com

It helps to have a web site, but you can just go for an email address and phone number, too, like:

Thomas Bartke
I Have Wholesale Deals! 626-355-6942
homeofferguy@gmail.com

Then go to REI club meetings. Bring your business card or postcard size business “bilboard” and hand it out. Talk to as many people as possible, and collect their business cards as well. Your business card or business billboard should always have an “offer” and call to action on the back! Such as “Who would like to know the most reliable sources for funding your deals and rehabs? Go to my web site and download your free report ‘The Truth About Hard Money’ at …”

Here is a special tip for making yourself stand out even more:

Let’s say you’ve visited the REI meeting at your local club and gathered 30 business cards. The next day, send out 30 postcards to these folks! You could thank them for talking to you at the meeting, and give your web site and phone number with an “ethical bribe” to sign up to your email list.

OK, make it a point to grow your list by a certain amount of subscribers in the next 2-4 weeks. WRITE DOWN that goal and put into action the suggestions that I’ve given you. – Call me after that time frame is over and let me know about your success!

So many times I get the question “How do I get started wholesaleing properties?”

 OK, here is the answer (Part 1).

I will give you the very first step. And the best thing about it is that you can start implementing it RIGHT NOW! No preparing stuff, no setup steps, no excuses – YOU ARE READY NOW!

It’s up to you to start NOW!

So, are you ready for this?

Here we go:

Spy on the “competition” and build your investor list at the same time.

1. Get the latest edition of your local or regional paper (weekend edition works best). Find the Real Estate Wanted section and Call every ad that’s in there. Here’s what you say: “Hello, this is <blank> [say your name]. I’m calling to find out what type of properties you are most interested in buying right now. – [Let them answer... then continue:] I’m a property finder and I come across good wholesale deals in this area. Would you mind if I called or emailed you if I have something that fits your criteria? – [They say: No, not at all.] Ok, great can you give me an idea which areas and criteria you are looking for right now?”Then get the following criteria:- what area/location
   - size of home (bedrooms, bathrooms, square footage)
   - price range
   - amount/level of repairs
   - how do they close (cash/hard money/conventional loan/creative financing) If they say “cash” say this verbatim: “do you mean hard money or private money when you say cash or do you have the actual cash available?”, and LISTEN carefully! Your goal is to find out who is a true buyer who can perform and close.
   - what LTV (“loan-to-value ratio”; this is a common misnomer for “what percentage of the fair market value are you willing to pay for the property?”
   - what is your exit strategy (“Are you looking to rehab, or buy and hold, or for deals to assign to someone else?”)
   - contact info (phone, fax, email)
2. Keep the information in an excel spread sheet for now.
3. Do the same with your weekly Pennysaver or Thrifty Nickel, and any “we Buy Houses” signs that you see.

Go to http://CaWholesaleDeals.com and sign up for my wholesale buyers list!

Subscribe to blog updates here so you get the next parts…

I’ve decided to use this new blog to track ALL interests and developments in my online world.

Working on a lot of different projects, deals, etc. my online persona needs a place where everything is anchored.

 In 2008 I will be using teleseminars to grow my online business and keep in touch with more clients and customers more frequently. I invite you to support me in this effort. There will be a lot of free content, information, and mind share – designed to moving more real estate deals so YOU can make more profits and build more wealth.

 More on this later…

Enjoy!

Kicking up your investing in 2008?

How about a nice buy-and-hold with a pond on 3 acres?

This home is appraised for $135,000. That leaves you an equity spread of $60,000 with only minor cosmetic repairs.

The only caveat is that it needs a new well to be drilled.

And for that reason, the seller will rebate $7,500 to you at closing!

This is truly a no-brainer for anyone looking to build equity and long-term wealth in real estate.

E-mail me immediately for details, but hurry – this will not last long!

Front: 3 bedrooms, 2 baths, 1300 sf

Back: Semi-finished basement and large deck

Street view

On the lot: Pond on 3 acre parcel