Wholesale Leads: 12 Strategies To Find Real Estate Wholesaling Leads

Finding promising wholesale leads is crucial for maximizing profits and staying ahead of the competition. Whether you're a seasoned investor or just starting out, knowing where and how to find these leads can make all the difference. As a result, we'll explore 12 effective strategies to help you uncover the best wholesale opportunities.

From leveraging online platforms to networking with industry insiders, we'll provide you with the insights and tools needed to successfully locate and capitalize on wholesale leads. Let's dive into these strategies and boost your investment success:

• What Is Wholesaling In Real Estate?
• What Is A Wholesale Lead?
• How To Get Wholesale Real Estate Leads
• What’s The Best Lead Source For Wholesalers?
• How Can I Get Free Leads For Wholesaling Real Estate (4Tips)
• How Many Leads Does It Take To Get A Wholesale Deal?
• Final Thoughts On Wholesale Leads

Unlock the full potential of your real estate journey! Securing leads for wholesale deals is just the beginning. To master the art of closing deals and achieving true success, enroll in Real Estate Skills' free training program today. Don't miss out on the opportunity to learn from the best and take control of your financial future. Sign up now and start closing deals with confidence!

What Is Wholesaling In Real Estate?

Wholesale real estate is a short-term investment strategy whereby an investor, typically referred to as the wholesaler, contracts and sells a property on behalf of the seller. Real estate wholesaling is often confused with brokering, but these are entirely different investment strategies.

While both involve being the middle man and aren’t capital intensive, a wholesaler must enter into a contract with the seller, agreeing to sell their property for a certain amount by a particular date. They then market it, assign the contract to a buyer at a higher price, and bag the spread, or difference between the seller’s contract-quoted price and the actual selling price, as their profit.

The goal is to sell the wholesale contract on the property before the initial purchase agreement contract with the motivated seller expires and at a higher price.

Wholesalers target absentee-owner, distressed, probate, or pre-foreclosure properties, but they may contract whatever property suits their target profile. Wholesale real estate is one of the best real estate investing strategies due to the lower financial risk and reduced time commitments.

What Is A Wholesale Lead?

A wholesale lead is a prospective motivated property seller, often eager to sell due to reasons such as financial difficulties or a desire to avoid the hassle of a traditional sale. Since these sellers are already motivated to sell, they are usually ready to consider an investor's offer, making it crucial to reach them before other wholesalers do.

Besides motivated seller leads for wholesalers, wholesaling also involves cash buyer leads. The latter are real estate investors or individuals who purchase wholesale properties. While their buying intent varies, cash buyer leads are vital to wholesaling because they can close deals quickly, providing a reliable exit strategy for wholesalers. Read on to discover the best lead generation for wholesale real estate strategies.

Read Also: 25 Questions To Ask Motivated Sellers: Investor’s (ULTIMATE) Guide

How To Get Wholesale Real Estate Leads

Discovering profitable wholesale leads is essential for any successful real estate investor. In the following list, we'll unveil a variety of strategies designed to help you locate these valuable opportunities. From innovative digital tools to tried-and-true networking methods, these techniques will enhance your ability to find and secure wholesale leads:

1. Multiple Listing Services
2. HUD Offers
3. Online & Offline Auctions
4. Networking
5. Neighborhood
6. Craigslist
7. Contractors
8. Facebook & Instagram Advertising
9. Lead Capture Form
10. Join Real Estate Investment Forums Online
11. Subscribe To A Wholesaler’s Buyers List
12. Real Estate Lead Generation Software

1. Multiple Listing Services

First created in the 18th century, a multiple listing service is a digital database of properties built by co-operating real estate professionals across different regions. It’s available to licensed agents and features listings with comprehensive, up-to-date property data such as:

• Private contact information such as phone numbers of sellers and their agents
• Property features, e.g., number of bedrooms and bathrooms
• Property condition, e.g., distressed
• Past upgrades
• Comps with other homes in the area
• Neighborhood information

The MLS lets users refine their search using filters such as property type, condition, and features such as the number of bedrooms. Instead of spending time on leads that may require a lot of nurturing, a wholesaler can use the data and the filters available to narrow their search and identify motivated sellers, thus speeding up the lead generation process.

Additionally, the MLS is updated with new home listings daily, creating a steady stream of fresh, quality leads for wholesalers. Even better, one can set up MLS to send listings directly to your inbox, further simplifying lead generation.

And because it attracts REI professionals across the region, and some of its listings reach third-party sites like Zillow and Redfin, an MLS also simplifies selling the same wholesaling properties you find on the platform by allowing you a wider reach. It also serves as a unified space where real estate investors, agents, and other REI professionals can network, proving beneficial, especially for newbie wholesalers.

More importantly, the MLS allows you to enjoy all these advantages for free as long as you’re licensed. To find quality wholesale leads using the MLS, start by identifying homes that match or fit your target wholesaling property profile.

Reach out to the listing agent and explain the perks of working with a wholesaler, craft a contract, and then market it to find buyers before the agreed period is over.

Read Also: How To Get MLS Access: The (Ultimate) Guide

2. HUD Offers

Finding HUD properties is pretty straightforward. Simply visit the HUD website and browse available REOs in your target state. Each HUD listing features comprehensive details such as the owner's contact information, disclosure statements, physical property descriptions, and photos.

These details allow you to assess immediately whether a property suits your wholesaling portfolio. However, note that HUD homes are typically sold through online auctions. They're first listed on the HUD Home Store website (hudhomestore.com), with a set bidding period. The HUD then reviews and accepts the highest offer. The property may be relisted at a lower price if no acceptable bids are received.

However, the bidding is only open to owner-occupants, allowing them to reclaim their homes. If they can't, the bidding is opened to the public.

3. Online And Offline Auctions

If you're targeting foreclosures, prioritize offline auctions in particular, as repossessed homes are usually sold at these auctions. They're often held in public venues such as county courthouses, local community centers or municipal buildings, city halls, or government administrative offices. Online auctions, on the other hand, are an excellent source for HUD offer leads.

Besides the HUD website, online property auctions can be found on various platforms such as Foreclosure.com. The site features a database of foreclosure properties and provides a link to where they are being auctioned. Other excellent real estate auction websites when seeking the best leads for wholesale real estate include:

• com
• Hubzu
• RealtyBid
• Ten-X

If you will use online and offline auctions for wholesale lead generation, make sure you evaluate and run comps beforehand to price your bid appropriately.

4. Networking

Some excellent real estate industry events to attend for wholesale networking include the Inman Connect event. Inman is one of the most renowned independent news publishers for residential real estate. The publisher hosts Inman Connect, an elite, 3-day residential real estate conference twice yearly. The event attracts over 50,000 industry professionals, including some of the country's most prominent real estate wholesalers. Aim to attend it at least once a year to build a network you can rely on for wholesale lead generation.

The National Association of Realtors also holds world-class real estate events like the Legislative Meetings & Trade Expo. While targeted at realtors, these events usually attract all types of investors, including real estate agents, house flippers, and wholesalers. Attending them allows you to build a network of both property and cash buyer wholesaling leads.

5. Neighborhood

Incorporate driving-for-dollars apps like DealMachine to simplify wholesaling lead generation through the neighborhood strategy. These apps allow you to effortlessly gather information about properties you identify while driving or walking around neighborhoods.

For instance, when you upload the property's picture on DealMachine, the software searches its database and provides owner contacts plus property details like tax history; this makes it much easier to identify properties with wholesaling potential.

Read Also: DealMachine Review: Is It Worth It?

6. Craigslist

Another excellent way to generate real estate wholesale leads is on Craigslist by establishing a presence on the platform. Rather than relying solely on the ads available on the platform for leads, post your ads as well. For instance, run ads expressing your interest in buying distressed homes or for cash; this will bring the best leads for wholesaling real estate right to you.

7. Contractors

Local contractors are frequently engaged by property owners and investors for repairs and renovations, giving them intimate knowledge of the local market. Consequently, they often have insights into homeowners renovating with the intent to sell and even house flippers seeking to sell quickly; this is the best lead source for wholesalers, which you should capitalize on.

So, work on fostering long-term relationships with them. You can engage them directly through social media or email. Once you connect, ensure you also offer them value by referring their services to your wholesale cash buyers. This collaborative relationship strengthens your connection, ensuring they furnish you with motivated seller leads for wholesalers whenever they come across them.

8. Facebook And Instagram Advertising

Join local Facebook buy/sell groups or wholesaling groups in your target area. These groups often have members actively seeking to sell or buy properties. Maximize the Facebook marketplace by searching for keywords like “distressed homes” to find potential wholesale opportunities.

To find wholesale leads on Instagram, use search relevant hashtags like #wholesaling houses to find posts from property owners, investors, or even realtors who may have wholesale opportunities. Also, follow and engage with real estate influencers, agents, and investors on Instagram, as they often share insights that could prove valuable in your wholesale lead generation strategies. Note that you can also use Facebook and Instagram to network.

9. Lead Capture Form

A lead capture form is a landing page created purposely to collect a website’s visitor contact information, such as email addresses and phone numbers. Integrating one into your wholesaling website in exchange for access to an important document or demo allows you to capture leads that might require a little nurturing but may eventually end up offering you one of the best wholesaling deals.

However, lead capture forms work best for sites with high traffic. So, if you’re looking to generate leads using this strategy, you’ll need to put some effort into SEO and promoting your website.

10. Join Real Estate Investment Forums Online

You can also connect with other like-minded professionals on these real estate forums, such as wholesalers, investors, and agents. You can later tap into these connections for wholesale lead referrals or exchange lead opportunities.

Additionally, actively participating in these forums provides access to valuable feedback from seasoned investors. For example, when unsure about a wholesale deal, you can seek advice from other investors, enabling you to make informed wholesale business decisions.

11. Subscribe To A Wholesaler’s Buyers List

Investors seeking wholesale leads can greatly benefit from subscribing to a wholesale buyers list. These lists are typically curated by wholesalers who gather potential investment opportunities and distribute them to subscribers. By joining such a list, investors gain access to a steady stream of vetted leads, often including detailed property information, pricing, and contact details.

This streamlined approach saves time and effort, allowing investors to focus on analyzing and acting on deals rather than sourcing them. Subscribing to a reputable wholesale buyers list can be a game-changer, providing a competitive edge in finding high-quality wholesale leads.

12. Real Estate Lead Generation Software

Technology has significantly transformed the real estate industry in recent years, particularly in the lead generation space. Today, we have real estate apps and software that enable investors to generate wholesaling leads from the comfort of their homes, unlike in the past, when they had to tarmac extensively. These tools have extensive databases featuring nearly all types of on and off-market property records. They also offer search functions and multiple filters that users can stack to generate highly qualified lead lists.

For instance, BatchLeads pulls property data from sources like the MLS, giving users access to over 150 million property records nationwide. These include vacant property records, distressed homes, pre-foreclosure, foreclosure and REOs, bankruptcy, and tax liens. Furthermore, the software offers over 100 stackable filters to refine searches, ensuring users generate highly qualified wholesale lead lists and avoid wasting time on uninterested prospects.

Additionally, each property record includes owner and property data, streamlining the outreach process as you won't have to seek contact insights from scratch. The software even features CRM for lead management. BatchLeads is just one of the many impressive wholesale lead generation tools. There are other numerous impressive real estate wholesaling software.

What’s The Best Lead Source For Wholesalers?

While there are endless lead generation sources for wholesalers today, none beat Multiple Listing Service platforms. The MLS database is so reliable that aggregator real estate listing sites like Trulia and Zillow use it as a primary data source. And while such sites may feature many of the listings you’ll find on MLS, it’s still the better option because it features incredibly comprehensive listings. They showcase property data you won’t find elsewhere, such as:

• Previous and recent property upgrades
• School districts near the potential investment property
• The seller’s preferred mode of financing
• Comps with similar properties
• Historical property data
• HOA paperwork
• Multiple contact information options

With such data at your fingertips, finding quality leads becomes a tad easier since you can seamlessly differentiate motivated sellers from leads that require more nurturing. You can also make unlimited offers, increasing the likelihood of getting responses.

Even better, you can automate your MLS and have leads sent to your inbox, saving time and effort significantly. And since MLS platforms attract hundreds of real estate agents, brokers, wholesalers, and other real estate investors, it allows for easier networking, making your future in wholesaling even smoother.

The best part? As long as you have a license, access to the MLS is entirely free, which technically means free leads. There are many excellent sources for leads, but the MLS is the best for wholesalers.

If you’re looking for a step-by-step process to help you start and grow your wholesaling business without spending a dollar in marketing, check out our brand-new free training on how to find and flip your next house in 45 days or less using the MLS!

How Can I Get Free Leads For Wholesaling Real Estate? (4 Tips)

With no experience and no previous lists to rely on, building your sales pipeline is the hardest part of wholesaling real estate when you’re just getting started. On the bright side, besides the MLS, there are plenty of free sources and tactics you could try for lead generation. Here are a few:

Maximize Pocket Listings And Off Market Property Deals

Off-market properties are exactly that; properties not on the market or any public listing yet. Reasons could vary, but most sellers often withhold listing to maintain privacy, test the market before they list, and avoid increasing its days on the market, thus reducing its selling potential. Real estate agents often have pocket listings that are excellent wholesale leads for investors.

But why go for such properties? Well, it’s a free way to find motivated sellers, and there’s less competition from other buyers, hence higher chances of getting a favorable deal. Additionally, most off-market property owners are usually not in a hurry to sell. This eliminates time pressure, allowing you to find qualified buyers smoothly and relaxedly.

To find quality off-market deals, look out for FSBO properties, consult other real estate agents, maximize tools like Craigslist, browse foreclosure lists, approach homeowners, or check out real estate auctions.

Use Social Media

The average internet user spends about two and a half hours on social media platforms like Facebook, Twitter, and Instagram. Besides entertainment, they use these platforms for other purposes, including selling and buying properties, making them a great source of free leads. The best part about generating motivated seller leads from social media is that they’re often motivated and looking to close quickly.

Even better, you don’t have to look for them. By actively using these platforms to market your wholesaling business, you can build your reputation as an expert, increasing your exposure, so motivated sellers come to you instead.

Drive For Dollars

Consider driving for dollars to get free leads. As the name implies, driving for dollars involves driving around neighborhoods for leads. As a wholesaler, you’ll essentially be on the lookout for properties with the potential to sell, such as:

• Distressed properties
• Homes on foreclosure
• For Sale by Owner

To ensure your efforts are fruitful, start by selecting a target neighborhood. Since wholesaling real estate is a business of finding sellers and then connecting them to a buyer, pick an area you would want to live in.

Consider factors like the crime rate, the education system, and how far the area is from main roads and other vital amenities, so it’s easier to find a buyer once you find a wholesaling property. Always plan your route to avoid driving through the same area twice or missing potential wholesale properties.

Bring your notebook and a pen to note down properties you might come across, and be sure to take pictures. While driving for dollars is a free way to generate leads, there are many subscription-based software with features such as route-tracking that you could maximize to make the task easier.

Read Also: Top 23 Real Estate Wholesaling Software To Scale Your Business

Put Up Bandit Signs

While being proactive in finding leads is critical to success, you cannot reach every seller. In that case, it’s better to let those sellers you couldn’t get to find you by putting yourself out there through conventional real estate marketing strategies like bandit signs.

Bandit signs, also known as yard or lawn signs, are poster-sized, often brightly-colored signs on stakes typically used by real estate agents to indicate an open house, homes for sale, or any other events related to their business. You’ve probably spotted one with a message like “we buy houses for sale, or sell your house fast.” They’re known as so because they’re illegal.

Although putting them up is a lot of legwork, it’ll be worth your while as they’re not only cost-effective, they draw attention to your business. They’re especially effective in attracting property owners who need to sell fast, such as foreclosure, distressed properties, and for sale by owner homeowners.

To create bandit signs that work, use a handwritten font, bright but straightforward colors like red and yellow, and ensure your message is clear and concise. Since they’re illegal, post your signs on trees or utility poles to avoid being caught and fined. You also want to put them up in areas with heavy traffic, such as highways and busy intersections, to get as many eyes as possible.

How Many Leads Does It Take To Get A Wholesale Deal?

Most wholesalers need at least 100 leads to get a single deal monthly. However, note that this figure isn’t written in stone and may vary based on:

Real Estate Market Conditions

For instance, during the pandemic, homeowners with expensive homes relocated to affordable properties to keep costs down. This meant they had to sell fast while simultaneously looking for a home, creating great wholesaling opportunities.

The Lead Source

Some sources produce leads that take more time to convert than others. For instance, bandit signs are more likely to attract motivated sellers, while lead capture forms attract sellers who might need a little nurturing.

Read Also: 7 Best CRM For Real Estate Wholesalers

A Wholesaler’s Lead Follow-up Strategy

Wholesalers with a good follow-up strategy are more likely to succeed at converting leads into sellers than those who lack one.

How much each lead costs you also varies depending on your lead generation strategy and the wholesaling tools you use. For instance, a wholesaler who solely relies on free lead sources like the MLS will pay nothing, while one who combines free sources with paid ones such as a wholesale buyer’s list will spend more.

Fortunately, the more effort you put in, the more leads you generate, meaning the second wholesaler’s efforts are usually significantly rewarded.

Final Thoughts On Wholesale Leads

Success in wholesaling is a game of numbers. The more leads you have, the higher your probability of getting a deal. And as shown above, for every 100 leads, you may only get two deals.

That is why you must evaluate traditional strategies like cold-calling and direct mailers while integrating digital marketing methods like the MLS into your lead generation strategy to ensure you get at least one profitable deal per month.

We’ve highlighted some great sources of wholesale leads above, including several free options you can use to get started.

Unlock the full potential of your real estate journey! Securing leads for wholesale deals is just the beginning. To master the art of closing deals and achieving true success, enroll in Real Estate Skills' free training program today. Don't miss out on the opportunity to learn from the best and take control of your financial future. Sign up now and start closing deals with confidence!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.