How to Find the Best Real Estate Wholesale Deals?
Real estate wholesaling is one of the most lucrative, minimum investment methods to jumpstart your real estate career! Just in case you missed our last post… I’m going to give you a quick rundown on exactly what is real estate wholesaling!
Wholesaling real estate is a short term investment strategy that involves finding sellers that are motivated to sell.
Who are motivated sellers?
Motivated sellers are owners that are willing to sell at a low price which is usually 10-35% below market value.
Or sellers who are willing to sell at favorable terms to you.
These sellers are usually motivated due to a specific reason. Understanding this reason and being able to resolve this immediate need is the key to finding and securing the best wholesale deals possible.
Ideally, you want to be able to close these deals in under 30 days…which is why it is vital to find the most motivated sellers in your market.
Makes sense? Great!
Let’s dive into how to find these motivated sellers and kick off your first wholesale deal!
Method # 1: Foreclosures and pre-foreclosures.
What are foreclosures? Foreclosures are properties that have been seized by the lending bank. This can either be due to nonpayment, properties that were abandoned by the owner, or properties voluntarily given back to the bank.
This can happen due to:
- Owners being laid off.
- Costly maintenance issues that the owner can no longer afford.
- Excessive debt/bills.
- Divorce/ Separation.
- Immediate job transfers out of state.
- Or a host of other emergency related issues.
Pre-foreclosures are properties that are in the process of being foreclosed on but have not officially been seized by the lending bank. Owners in this status have usually received a notice of default.
Both conditions are made available on the public record.
You can find foreclosures by:
- Visiting your county offices.
- Searching bank websites.
- Working directly with a real estate agent.
- Utilizing a foreclosure listing service.
Once you find a list of pre-foreclosures you can use direct mail to send out mailers to the owners. Offering this immediate help in their time of need.
Method #2: Auctions
When trying to find wholesale properties, foreclosures are definitely your best bet, however, this isn’t your only option.
A lot of great deals can be found by visiting your local auctions. You can often secure properties at auctions for as little as the remaining amount on the previous mortgage. This means that you can find deals that are far below market value which increases your profit at closing.
One of the downsides to auctions is that most require cash payments on purchased properties.
Navigating auctions and securing the best deals possible is essential in profitable wholesaling. We will dive deep into the auction process in a coming post.
Method #3: Probates
Probate leads are potential sellers who have inherited a property that they often want to sell quickly after completing the probate process. These properties are usually the result of inheritance. Most beneficiaries are not prepared to maintain a property or would rather convert it into cash to be used in a way that they see fit.
These owners are often very motivated to sell.
You can find local probate leads by:
- Searching local probate listings.
- Checking probate listing online via a public record search.
- Calling or visiting your local probate court.
- Building relationships with local estate planners and probate attorneys.
Finding probate leads can be tricky. For one, most don’t want to necessarily bombard someone in grieving by trying to get them to sell their home right after losing a loved one.
However, the profit and potential gain from finding these types of motivated sellers are too substantial to ignore!
We will also cover how to do this the RIGHT way in an upcoming post so stay tuned!
Wrapping it all up!
If you want to find wholesale deals…you must find motivated sellers. I recommend that you develop processes so that you are tapping into all of the methods outlined above.
When you’re fishing, the more lines in the water….the better!
- The key to keeping your wholesale pipeline full is to continuously find motivated sellers.
- Use all three of the methods and don’t be afraid to put your name out there so that when a motivated seller is ready to sell, your name is in their contacts.
- Start off using one method and familiarize yourself with the ins and outs before moving on to another. This will keep you from casting your net too wide in the beginning stage and becoming frustrated trying to take it all in.
Now you must get started! The key to any successful venture is action!
Drop a comment below and lets us know how you have been finding your deals. You might just help a fellow wholesaler!
What is direct mail and how can you use it to find motivated sellers in your area?
How many pieces of mail can you send per day using direct mail without a permit?
Hint* They deliver mail every day to your mailbox (US)!
Comment Your Answers Below!
Find out what you really need to know to become a wholesaler (or real estate “middle man”) who completes cash producing deals without using your own cash … or banks or lenders. You’ll learn how to get started, the qualities successful wholesalers have, how to close money-making deals and additional success tips.