The 4 Best Ways To Generate Wholesaling Leads
It doesn’t matter what real estate investment strategy you are using in your business; lead generation is an important element.
For wholesaling specifically, there are a few lead generation strategies that will give you an edge over others.
If you talk to an experienced wholesaler, they may tell you that they spend hundreds if not thousands of dollars on lead generation strategies throughout a given year, while another wholesaler who is just as experienced may only use low cost or free options to find leads within their markets.
Regardless of your experience level or financial situation, there are many lead generation strategies that any wholesaler can use in their business this year.
Let’s take a look at a few ways to generate leads for this specific type of investing.
1. Bandit Signs
Bandit signs are one of the oldest lead generation strategies for wholesalers.
Bandit signs are simply a much smaller version of a billboard. They are usually small signs that include a short slogan asking to buy someone's home with a contact number underneath. They are placed in public locations to gain traction.
This lead generation strategy is meant to be a straightforward marketing tool that can be replicated in mass numbers. They are most effective when placed alongside highly trafficked roads and areas that will get the most exposure to potential sellers.
However, many people have begun to catch on to this simple strategy. You may have even noticed a crowd of bandit signs around your city. That being said, you will likely not be the only one trying to gain attention with this strategy.
Pros of Bandit Signs
Bandit signs are typically inexpensive. It is very typical for a single bandit sign to cost anywhere from a few cents to $2. However, it may be more expensive if you are willing to pay someone else to create the signs for you. Some people prefer a more professional look, and if you don’t have a creative eye, it may be worth paying someone to give your sign some attraction.
Bandit signs require minimum effort to maintain after they are set up. The idea is to keep the bandit signs up as long as possible so that as people drive past, they will get their attention.
Cons of Bandit Signs
Bandit Signs aren’t typically seen as professional. Because of the look of bandit signs, they get a bad wrap of being unprofessional. In this case, some of your calls have the potential to be a bust due to the skepticism people have with calling random numbers. A highly profitable deal may not be every call you receive.
Bandit Signs may be illegal in your area. Depending on where you live, it may be illegal to post bandit signs throughout your city. So if you are even remotely considering using this lead generation strategy, please consult your local laws before making your signs.
2. Direct Mail
Direct Mail is exactly what it sounds like: sending a piece of mail directly to potential sellers as a lead. The mail is usually a postcard or a letter detailing exactly why you are reaching out to the individuals with your contact information.
The main objective with the direct male is targeting individuals who could be potential motivated sellers. For example, targeting a letter to a recently divorced couple may be looking to sell their house in their divorce process. This type of public information can be found at your local county’s clerk office in the records.
Other things to look for when scouting out potentially motivated seller are:
Pre-Foreclosures
Expired Listings
Distressed Properties
Probates
Out of State Landlords
The best thing about this list is that all of the information is publicly available for FREE within your county. If you don’t want to take the time to search for the information yourself, you can always purchase a list of motivated sellers from companies such as ListSource.
Pros of Direct Mail
Direct mail has quality lead generation. Since you are taking the time to conduct a list of motivated sellers, direct mail is highly targeted at a particular group that provides quality lead generation.
Direct mail can be as professional as you would like it to be. You are in total control of what type of content you would like to be on the postcards or letters you plan to send.
Cons of Direct Mail
Direct mail is time-consuming. If you are planning to run a direct mail campaign, you have to send hundreds if not thousands of letters out just to receive a few callbacks. Someone has to write or print all of those letters and then place them in an envelope to be sent off.
Direct mail can be very expensive. Between the cost of paper, envelopes, and stamps, the cost of running a direct mail campaign can become extremely expensive, very fast. You will want to send as many letters as possible, but keep in mind the cost that may be adding up.
3. Going to Auctions
In today's age, we are lucky to have both online as well as in-person auctions for properties. At both online and in-person auctions, you can buy a property at a discount due to a foreclosure or a property tax default.
It is important if you are a wholesaler looking to bid on a property that you follow the established rules for participating in the event. It is also typical that you have anywhere between 5 to 10% of the property's price in hand if you decide to purchase a property.
Bidding on properties at an auction is not for the novice wholesaler. Even though this is a valuable lead generation strategy, it may be best to leave it to the experienced wholesaler due to the risk.
Pros of Auctions
It is very likely you will find a deal at an auction. If you are attending an auction, you can expect that most properties are truly at a discount because they were either foreclosed on by a mortgage lender or acquired by the county due to a default of property taxes.
In both cases, both entities are trying to sell the properties as quickly as possible so that they are not stuck trying to sell the property through a real estate agent later.
Cons of Auctions
You don’t have time to inspect the property before buying it. For most auctions, you are agreeing to buy the property sight-unseen, meaning before you get to see the property in person, you would have already bought it. This is extremely risky because you do not know the full condition of the property at the time you are buying it.
4. Facebook Ads
Everyone is on Facebook!
This is why Facebook ads are such a great lead generating tool. Out of all of the lead generation strategies, Facebook it's by far the most targeted.
Not only does Facebook have the ability to match you up to a list of users that may be interested in your ad, but it also canto re-target those individuals who may have clicked on your ad.
Pros of Facebook Ads
Facebook ads are cheap and targeted! Similar to other social media platforms, Facebook charges cost per clicks on your advertisement. Facebook's median cost per click is around $0.50.
Due to the amount of data Facebook has on its users, you are able to create a detailed list of your targeted users.
Cons of Facebook Ads
Facebook ad campaigns can be complicated. If you are looking to use Facebook ads like most full-time wholesalers, you must be computer savvy to understand the complicated setup.
You must have the ability to code, produce designs, as well as create a custom list for an ad campaign with all the features above.
However, if you don’t want or need all the features described above, you can run simply Facebook ads by your location. This setup process will only take a few minutes, but you won’t be using all the resources Facebook has to offer.
5. Networking
Networking is one of the most underrated lead generation tools in all industries.
In real estate, networking has always been a powerful tool for lead generation within all real estate investing strategies. Between family members or friends, someone in your network may be in a stressful situation and are willing to offload a property.
As a wholesaler, you always be looking for opportunities to meet new potential clients and investors in your community. Attending a local or virtual real estate meetup is a perfect place to start.
If you want to learn more about real estate investing —head over to the Zelite app!