Marketing your wholesale deal is contingent on three things: providing potential buyers with informative details, informing those on your buyers list that a property is for sale, and making sure it is visible to the general public. The concept is relatively simple, and for good reason – it just is. However, the devil is in the details. Whether or not marketing your next wholesale deal to a buyers list pans out the way you intended is dependent on the execution of the strategy. That said, there is a system that is capable of eliciting proven results. If you want to market your wholesale deal to a buyers list, I recommend following these steps:
4 SIMPLE STEPS TO MARKET YOUR WHOLESALE DEAL
1. Organize Your Buyers List
The best wholesale investors are well aware of the fact that their most trusted marketing asset is none other than their own buyers list. No other tool has the ability to sell a wholesale deal more efficiently than a list of interested contacts that you have already developed a working rapport with. That said, not unlike any other tool real estate wholesalers have come to rely on, a proper buyers list must be cultivated, maintained and organized. If yours isn’t, I highly recommend doing so before you even consider taking on your next deal.
Provided your buyers list is in need of an overhaul, don’t hesitate to do a little spring cleaning. Be sure to update where necessary, but consider getting rid of contacts that are no longer worth keeping. Their presence on your list simply makes it less efficient, and therefore expendable. Say, for example, your list consists of a lot of old emails. If by chance they are no longer valid, there is a good chance they are hurting your deliverability rate. The valid emails on your list could end up being ignored without you even having any clue.
Once you have determined which contacts are worth keeping, it’s time to preform some routine maintenance. Double check that you have all of the information you need. Are you fully aware of they types of deals each contact is interested in? Are they even interested in a wholesale deal? Keep on top of your contacts, and be mindful of their intentions. The more you know about what they want, the easier it will be to offer them a deal in the future.
With that in mind, you must also understand that peoples’ intentions change periodically. What may have been a priority for them last week could no longer have any relevance. That’s why it is important to remain in constant contact with those on your list. In fact, regularly engaging with the contacts on your list is just as important as maintaining the list itself. Send out emails with updates to those who may be interested, or even just to catch up. Doing so will not only allow you to keep up with what the people on your list are looking for, but it also has the potential to keep you at the forefront of their minds — something I have yet to find a better replacement for.
At the risk of sounding cliché, how you do anything is how you do everything. Get in the habit of asking for all of the information you may need in the future. It could be the difference between landing a deal and not.
2. Create A Marketing Package
I want to be perfectly clear here; the easier it is for your prospective buyers to digest the information you place in font of them, the better. Any attempt to barrage them with numbers and data that don’t have any context may actually scare them away, and could potentially prevent you from making the connection you had hoped for. Instead, you need to gather all of the information you have on a property and combine it into one concise, easy to read packet. In other words, you need to make it easy for any potential buyers to make a decision.
Your main priority should be to provide them with information that is easily accessible and quick to digest. Time is money in the real estate industry, and the sooner they can come to a clear decision, the better. I recommend printing out the following information and creating a wholesale deal marketing package:
- Deal Terms: In addition to the property’s physical location, lay out the numbers of the deal: the sale price, the estimated repair cost, and the after repair value. It can’t hurt to include the date you hope to close by or which types of offers you are willing to entertain.
- Property Card Information: This is another way of identifying certain details about the property. Print a PDF of the tax assessor’s field card and include it in your packet.
- Images & Videos: I highly recommend including as many pictures and videos of the property as you can. Remember, the key is to facilitate a timely transaction. The more pictures they have to base their decision on, the sooner they will be able to make a decision. There should be no less than 15 pictures documenting every square inch of the property.
- Repair List: Include a list of the repairs you believe are needed. I have found that the repair list I use when analyzing the property for the first time comes in handy. Essentially, you want to let people know what they can expect.
- Comparable Sales: The best way to identify how much a property may sell for after repairs have been made is by offering “comparables.” Include at least three properties in your packet that are close by and have sold recently. That way they have an idea of what to expect to sell the home for.
3. Offer The Deal To Your Most Serious Buyers First
The next time you attempt to wholesale a deal to your buyers list, I can assure you it is in your best interest to offer it to your most serious buyers first. While the amount of people you intend to inform could vary depending on the type of property, I highly recommend starting with 5 to 10 buyers that you know are both interested and capable of closing fast. It’s not a coincidence that many investors tend to sell to the same buyers over and over. Once you have developed a working rapport with a trusted individual or company, you will understand how important this relationship is.
Real estate, as I am sure you are aware, is a people business. If you can become a trustworthy wholesale supplier to a select few buyers, there is no reason for them not to continue doing business with you. In the end, everyone wins, and you most likely already have a buyer lined up before the property is under contract.
4. Send Out An E-Mail Blast
In the event your most serious buyers pass on the opportunity, there is always the chance someone else on your buyers list will be interested. After all, that’s what it’s there for, right? However, instead of calling each potential buyer, send out a massive email blast. There is no better way that I am aware of to reach such a broad audience in such a short period of time.
Ideally, the email blast will direct them to your website, where they can gain access to all the information I mentioned in step two. However, for the email to work, they must first open it. Provided you have maintained a working rapport with those receiving the email, this shouldn’t be a problem. If the opposite is true, you will need to come up with a catchy headline. You must enable your email to stand out from the myriad of emails they are likely to get on a daily basis.
One thing I like to do is to send a follow-up email immediately after someone accepts the deal. In doing so, a sense of urgency is created, and people will presumably act faster upon receiving your next email if they know someone else capitalized on a deal that was offered to them.
What If I Don’t Have A Buyers List?
Truth be told, any investor serious about making a name for themselves in the wholesale industry needs to have a buyers list. However, those that are new to the real estate landscape may not be in a position that has buyers lining up to purchase their properties. If this is you, don’t worry. You are not alone. It is important to note that every investor got their start somewhere, and none of them started with a buyers list. Fortunately, there are ways to market your wholesale deal that don’t include referring to past contacts. While building a buyers list should be your ultimate goal, there are several viable marketing options that don’t include talking to previous contacts. If you are interested in marketing your wholesale deal to potential buyers, but don’t have a buyers list, I encourage you to read part two of this series.