Exactly How To Start a Real Estate Wholesaling Business

The Maestro is about to drop some knowledge on ya. Look, if I were just starting my new real estate wholesaling business, I’d start off exactly like this. This is important, so take your eyes off of the TV for a second and pay attention.

Step #1. Seek Out and Locate Your City’s Wholesale Real Estate Cash Buyers

Sounds pretty easy, right? Uh… not so fast, my friend. Look, a lot of things appear easy, but that doesn’t mean it will be. If you truly want to know who is buying up real estate in your area, you need to be proactive. They’re not exactly going to be kicking your door in. You need to go find them…

Here is what you do first. One, get yourself 100 blank, white, 24 x’ bandit signs, with metal stakes. These are available all over the internet. Just Google “blank bandit signs.” My recommendation? Contact the company by phone. I buy my signs from Sign Warehouse (signwarehouse.com). And speaking to a sales rep sometimes has perks, like free shipping. My rep, Stephanie Johnston, used to cut my shipping all the time. And these boxes are heavy…

Ok, you’ve got your 100 signs in. Now, take 30 of those signs, and write this on them:

$.30 on the dollar! must sell now!! (local # from patlive.com)

Heck, if you wanted to put 50 out, that would be just fine. Why $.30 on the dollar? Because that’s a really, really good deal… in most parts of the country. Now, if you live in parts of Michigan or Ohio, that may not work for you. But, for just about every other locale in the U.S., it will. And like gold…

Why use a local phone number from patlive.com? Because it’s untraceable… and bandit signs are illegal. And unless you want your city’s local code enforcement dialing you up, you better have an untraceable number. Trust me, they won’t be calling to buy your property. They’ll be pissed, and calling to threaten, and possibly issue, fines. But, they can’t fine what they can’t find. And patlive.com works like a charm. I put all my students on it.

Ok, so you have your 30 signs out advertising a fictitious property. What do you do next? You answer your phone… often. What? You don’t think 30 bandit signs will make your phone ring? It will if you’re advertising a deal for $.30 on the dollar. That’s for sure. Would you call if you saw a sign like that? I sure would.

Ok, they call, get your voice mail and leave you a message. You call back and say…

“Hey Mr. Buyer. This is so-and-so. I got your message you left about my property for sale. Well, a funny thing happened. Literally one hour after putting out those bandit signs, I received a contract on the property and a deposit. However, as soon as I get another great deal, which won’t be long, I’ll personally call you BEFORE I market it to the public. That sound good to you? Cool, let me get your contact info, and I’ll be in touch soon. You’re now on my VIP buyers list.”

And that’s how it’s done.

“But Maestro, 30 signs won’t generate that many calls. I’ve used bandit signs before and they didn’t work.”

Uh, try them again. And, what I just told you to do, didn’t just get pulled from the air. It’s a tactic I use with my students… and not because it doesn’t work. Have faith, grasshopper.

Ok, so you’ve got a bunch of new buyers on your short, but active, buyers list. BTW, all you need is 5 to 10 serious, active, experienced, cash buyers. That’s all. And you should know these people intimately. The rest of the lookie-lou’s you put in an email database and blast to when you get a property that your real buyers pass on…. hoping one pulls the trigger.

Now, jump on the web and find your local real estate investment association (REIA). Here in Tampa, we have two, TBREIA and SREIA, and both are huge. Find one that meets close to your house and go to a meeting. I don’t think you have to be a member to attend, but you’ll only have to pay like $5, most likely. Make sure you use the time after the meeting is over to shake hands, exchange business cards and express your interest in finding cash buyers. And, if you enjoy your experience and believe it will benefit you, join the group and become a member. Again, it’s not that expensive.

Success Tip 1

We’re in this business to make a lot of money.

Success Tip 2

If you meet a wholesaler who has active buyers, take his card or contact information because you may be using him in the future to move a property. It’s easy money for him.

Success Tip 3

If you have active, reliable buyers, other wholesalers will now come to you. Brokering the sale of a wholesale property is an easy way to make some nice dough…

Success Tip 4

Remember success tip 1.

So, you ask, what do I do with the other 70 blank bandit signs?

2. You locate your city’s distressed sellers

Well, now that you have some nice buying contacts, it’s time to bring them some deals. Take those 70 signs and write this on them:

I’ll buy your house CASH! (patlive.com number)

Make sure you have two local numbers. Some like to use one number, with two options. Like, “If you’re looking to sell your house, hit 1. If you’re looking to buy a house, hit 2.” I’ve never been a huge fan of that, though. I like the two-number system, better.

Remember, placement is important. You want tons of eyes on these signs, but you also want to place them in areas that are desireable to your buyers. So, find places that match those two criteria and stick them in the ground. Make sure they are at places where cars stop. No highway medians, where cars are racing by at 70 mph.

And while you are fielding leads from those 70 signs, you should be creating a more well-rounded marketing mix. However, what I just described to you will definitely give your business a kick in the pants right off the bat. It will give you momentum. And momentum is HUGE in this business. If you’re doing nothing… it will become habit. If you’re active and aggressive… that will become habit, also. And, the money you make will become addictive.

Keep the faith… grasshopper.

Andrew Massaro is the country’s top wholesale real estate coach to the new investor. For coaching services, visit http://tinyurl.com/ygf97l7. He is also the author of the wildly successful e-book, Quick Flips and Fast Cash real estate investing.