When you acquire a property, I urge you to follow the rule of wholesaling first, retailing second, lease-to-own third, and renting as a last resort. If you’re jumping straight to the second step with the intention to fix and flip, you could be missing out on the quick cash/lower risk equation of wholesaling, and therefore have very few tools in your wholesaling toolbox to pull out if you ever needed to dump a property quick.
Let’s give you some tools.
There are many ways to fill your database of wholesale buyers so you can turn a house over for a fast $5,000, $10,000 or even $15-$20,000. But if you don’t have buyers in your Rolodex, and your only method of sale is to list it on Craigslist, then you’re missing out on the potential of multiple offers and bigger bucks.
Take an hour a day for the next week to make connections. Here’s a list to get you started:
– Meet people at REIs and other investment clubs.
– Connect with others at auctions.
– Call bandit signs, “I buy ugly houses” ads, and snap photos of car magnets (when you’re not driving).
– Call back people who have called your bandit signs, ads, and car magnets in the past.
– Connect with real estate professionals: agents, title companies, attorneys, appraisers, contractors, and bankers.
– Other flippers, and the other flippers they know. Go deep, and you’ll find a pool of potential buyers.
– Call the “For Rent” signs on properties. Landlords are often investors looking for more resources.
Even if you don’t have a house to wholesale yet, you can always be building your list. Remember the Rule of 56?
We’ll be teaching on this subject and so much more at our upcoming Regional Real Estate Clinic in July. For more information on this event that will improve your game, update you on the latest in real estate news, and round out your knowledge in the field, contact us at 800-533-1622.
We hope you’ll join us;
Lee A. Arnold
The Lee Arnold System of Real Estate Investing
To read more articles click here.
Follow me on Twitter: @LeeArnoldSystem