I was reading a marketing email from some guru or other last week that was teaching reverse wholesaling. I am not sure what his concept was as I had to pay $6 or something to get him to mail me a free book that he could have provided me digitally for free . . . but I digress.
Anyway, what is Reverse Wholesaling?
Well to me as a cash buyer who has also sold a lot of bank owned houses and wholesale houses, I would have to say that reverse wholesaling, means finding out what my cash buyers want to buy and then finding that property, getting it under contract and selling it.
That means when you become a wholesaler, a lot of your time needs to be devoted to:
- Building your buyers list
- Finding out who the top 10 % of buyers are on that list
- Detailing exactly what those top buyers want to buy
- And then marketing for motivated sellers that have properties my top 10% want.
So how do you build a buyers list?
- Trolling for Dollars – going live and virtually where cash buyers might hang out and making contact with them in several different ways and asking them for info to put them on your cash buyers list.
- Real Estate Investor Meetings – like MAREI
- Real Estate Investing Seminars – like the Real World Transaction workshop coming up on the 19th
- Social Media Pages and Groups – like MAREI’s Facebook Group
- Court House Foreclosure Sales
- Here, its all about networking and interacting live or via technology
- Stalking Cash Buyers – here you have to work a bit harder and find information on particular types of houses, researching to see who the owner is, and then sending them marketing asking them to contact you in some way.
- Cash Buyer Lists in your area – we use these at MAREI to mail for potential Members
- Social Serve and other houses for rent sites – back track to find the owners and mail them
- MLS – cash buyer lists – look up all cash transactions – contact the Realtor to add them as a cash buyer representative.
- Interviewing – one you have people on the list, you need to actually take the time to SPEAK with them, one on one, so you can find out more about them, what they buy, where, when. Find out if they have houses for sale or rent that are listed online somewhere so you can study what it is that they do buy.
Then once you have that cash buyers list, and know who your real buyers are, go out and start your marketing to find the houses that they want.
For example, here at MAREI, I know there are about 10 people that buy to renovate and resell. My company is one of them. I am on a lot of lists where wholesalers send out their houses, yet only 1 has contacted me to ask me for real “Where do you buy and what do you want to buy as I am going to send out marketing for your type of house”.
What type of cash buyers are you going to have:
- Pretty House buyers that buy to resell lease to own in nice neighborhoods – say $100k to $120k
- Pretty House buyers that buy to renovate and resell in nice to nice+ neighborhoods – say $120k to $300k
- Landlord buyers that buy to renovate and rent out in rental neighborhoods from $0 to $120,k
- Turn Key Landlord Sellers who buy to renovate, rent, sell, and then resell in low end rental areas – $80k and lower.
Almost cash buyer – This is your Pre-Approved FHA buyer who is looking for a house that could use a bit of sprucing up, but would still pass FHA and inspections – usually a paint, carpet, and update house as opposed to a house with major repairs needed before it can be lived in. You would probably need to purchase cash or financed, or subject to and then resell to your almost cash buyer by listing for sale in the MLS.
So for all of you Wholesalers out there, if you are not reverse wholesaling, get busy and start figuring out what your buyers want to purchase.