No matter what business you’re in, marketing is an essential element for success. You may have built the proverbial better mousetrap, but the world will not beat a path to your door if they don’t know who you are, what you do, or how to find you.
That basic business principle is especially true for wholesale real estate investors. No matter how much you know or how good you are at putting great deals together, if buyers, sellers, and other investors don’t know about you, you won’t do much business.
“Marketing is absolutely critical to profitable wholesale real estate investing,” says AC Johnson, who teaches the Wholesale Buying advanced training course and coordinates the mentor program for Wealth Intelligence Academy®. “Certainly you need to know the mechanics of the process, such as how to figure the numbers and do the contracts. That’s important. But people have to know you’re in the business—if they don’t, how will they know to call you when they want to buy or sell?”
Johnson recommends putting together a comprehensive and targeted marketing plan that will get your name and contact information in front of as many potential buyers and sellers as possible as quickly as possible. “Your goal is to find the deals before anyone else knows about them,” he says. “To do that, you need to be creative. It doesn’t take a lot of money, but it does take dedication and effort.”
Most wholesale real estate investors know the traditional marketing methods that include working with real estate agents and brokers, checking newspaper ads for “must sell” and “handyman special” listings, and following up on “for sale” signs in yards.
“These methods work, but if properties are listed with an agent, advertised in the paper, or have a sign in the yard, then everybody knows about them, and the competition makes it tough to make a good profit,” Johnson says. “You want to separate yourself from the masses, stand out from the crowd. And you can do that with smart marketing.”
Marketing techniques that work
Some of the marketing strategies Johnson advocates include:
- Contact local attorneys. Send letters with your business card to attorneys who specialize in bankruptcies, foreclosures, family law (divorce), probate, estate planning, and real estate. These attorneys are likely to have clients who may need your services.
- Network with people who work in your target areas. Build relationships with the people who are regularly in the neighborhoods where you want to invest. They see what’s happening and can alert you to potential deals. These sources can include mail carriers, meter readers, lawn service providers, newspaper and pizza delivery people, and even trash collectors. Caution: Though you may want to compensate these sources for leads that result in deals that you close, be aware that some states interpret such compensation as a real estate commission. Before offering any referral fees, check with an attorney to be sure that you can legally do so in your state.
- Build relationships with private lenders. In addition to being a funding source for when you’re buying property, private lenders may also be a resource for wholesale deals. Let them know that you’re available to help when they have foreclosed properties on their hands.
- Put up signs everywhere you can. Post “I buy real estate” signs on street corners, trees, utility poles, and even on vacant houses. Check with local code enforcement to make sure you place your signs legally. Invest in magnetic “I buy houses” signs for your car; however, check with your insurance agent to be sure such signage will not affect your coverage.
“Signs are one of the best marketing tools for a wholesale real estate investor,” says Johnson. “A simple, easy-to-read sign on your car makes it a rolling billboard, and you never know when the person pumping gas next to you or the person shopping in the grocery store at the same time you are might have a property to sell.”
Another benefit of a sign on your car is that it lets people know what you’re doing when you are driving through neighborhoods looking for property. “An unmarked car driving slowly through a neighborhood and stopping at vacant houses could arouse suspicion and make the residents nervous,” says Johnson. “Having a sign on your car that clearly identifies your business will keep you from getting hassled by people who want to know what you’re doing. It also creates a trust factor that makes people more willing to answer your questions if you want to ask neighbors about the status of a property.”
Jordan Taylor is the editor of Millionaire Mentor™ Newsletter, which is published by Whitney Education Group, Inc.™ To sign up for a free subscription, visit http://www.russwhitney.com
For more information about advanced real estate investment training through Wealth Intelligence Academy®, visit http://www.wiacademy.com
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