5 Ways to Improve Your Denver Wholesaling Success
Denver wholesaling is one of the most common entry points into the world of real estate investing. The process is fairly straightforward, has little risk and requires limited capital. A typical wholesale transaction is connecting a seller with an end buyer. When the contract is assigned, the wholesaler steps out of the way and collects a fee or portion of the net profits of the deal. While this sounds like an immensely easy business opportunity, there are measures you should take to see the most success from your efforts. The following five tips will help you ensure Denver wholesaling success.
Market to the Right People
Not marketing to the right people is a waste of both your time and your money. Instead of blindly calling 100 people from your phonebook, do some research and reach out to people who are motivated to sell to you at your price. Investors often overlook finding these people, but between divorces, foreclosures and absentee owners, there are plenty of ways to find the right group of people. As with any other marketing technique, repetition is key; you can’t send out one mailing and just wait to see what happens. Spend some money mailing your list several times and target the right people. When you are going after the right individuals, you increase your chances of seeing a greater return on your investment.
Get Good Deals
Once your phone has started ringing with leads, it’s time to sort the trash from the treasure. As a wholesaler, it is your job to present a deal that is attractive to your end buyer, and you need to factor your fee and their profit into the equation. A successful Denver wholesaling deal needs to be attractive enough that both you and your end buyer earn money when the property sells. The idea of a good deal is subjective, but one of the most commonly used identifiers is the timeframe. Sellers facing foreclosure or landlords looking to sell rather than complete repairs may sell more quickly than others. Using the right percentages and formulas help you determine what a good deal is. Ultimately, the best deal is one that is a property where both you and your end buyer see value.
Information and Application
Prior to starting your marketing campaign, it’s good to have an idea of how you will handle incoming call volume. The majority of calls are done on impulse, and if a buyer’s call is sent to voicemail you are essentially throwing money away. You need to answer your phone, and to have an idea of what you will say when you do. Get as much information as possible from your initial communication, and your attitude and tone are of the utmost importance at this stage. Understand that there will most likely be tons of questions and that you need to make potential sellers feel comfortable with the process.
Negotiation
The goal of any real estate transaction is to get the best deal possible, but with Denver wholesaling, this is critical. Your wholesale deals need to have more room for potential profit than any other type of deal and you should be prepared to fight for every dollar. You will need to be able to support your offer with estimates of cost repairs, comparable sales and any other perks that the seller may be interested in. If your offer is on the lower side, be prepared for a bit of anger and to justify your price – not every property is as valuable as the seller believes it to be. The better you are at conveying your thoughts and negotiating, the more successful your wholesaling business will be.
List of Buyers
Being able to secure a deal is only beneficial if you can find an investor to assign to it. As you begin the process of marketing, you should also begin to build a list of buyers. Every single person that you come into contact with through networking events, investment clubs and other industry gatherings is a potential buyer. The more people on your list, the more likely you are to assign a deal quickly. When talking to potential buyers, gather information about the things they are looking for in a property and ask about price points, locations, conditions and anything else that is appealing to them. Keep this information on a spreadsheet, and when you find a property that fits their desires, reach out to them.
Denver wholesaling is a great way to introduce yourself to the real estate industry. The risks you incur are minimal, you don’t need tons of capital and the whole process is pretty straightforward. Use the above tips to help you succeed in Denver wholesaling.