When it comes to generating leads, it pays to be friends with at least a couple of wholesalers. Wholesalers will buy contracts on flip houses and sell them to real estate investors. Basically, I look at wholesaling like a service to generate leads on really great deals, so I never mind spending a little bit more to buy the contract and get a really amazing house flip with less work on the front end.
Of course, just knowing wholesalers won’t necessarily help you fill up your lead funnel. To make the most of your relationship with investors who’ve chosen to wholesale instead of fix and flip properties, you need to be at the top of your favorite wholesalers’ lists for buyers.
Let Them Know What You’re Looking For
First, wholesalers hear real estate investors say things like, “I’ll buy anything you have! Just let me know when you get your next contract!” all the time. You might think that telling a wholesaler that you’re open to buying a lot of different kinds of properties and that you’re eager to get started would be a good thing, but that’s not what a statement like this actually says.
When an investor says something like that, they’re actually telling the wholesaler that they don’t know what they want, but they want to be first on the list for consideration. Then, nine times out of ten, when the wholesaler contacts them with an offer to sell them a contract, they’ll say something like, “Well, that’s just not quite the kind of property I’m looking for right now…”
Instead, be upfront about your budget, the kinds of properties you’re interested in, and where you want to flip houses. This will tell a wholesaler that you’re serious about investing in real estate and that you know what you want. As a result, they won’t waste your time with contracts that don’t work for you, and the contracts they do offer you will be a lot more likely to work out. In other words, the leads you get will be more meaningful, and they’ll lead to a lot more deals.
Follow Up and Stay in Touch
After you first connect with a wholesaler, don’t forget to follow up with them, whether you’ve already bought from them or not. The idea is to be on their radar at all times but to never be pushy or annoying. If you’re in the market for a specific kind of property, ask them if they have anything coming up that might fit the bill.
If they don’t have anything exactly like what you’re looking for, ask them about the properties they do have. You might be surprised at some of the properties you can get through a wholesaler, so don’t limit yourself to the exact location, size, or style of home you had in mind. Remember, the point of house flipping is to fix and sell your properties quickly. If you stay in touch with one or more wholesalers, there’s a good chance they’ll have properties that will work for your fix-and-flip business.
The more you buy from a wholesaler, the more likely they’ll be to call you first when they get new contracts. So stay in touch, be clear about what you want, and work with them often. If you can show a wholesaler that you mean business and that you’ll buy multiple contracts from them throughout the year, they will want to keep working with you and will continue to look for contracts on the kinds of properties you flip. Good luck!