How do wholesalers find deals?
By Josh MillerUpdated 4 min readWholesalers find deals by reaching owners who are likely to sell before those owners list: mail and calls to public-record lists like foreclosure filings and expired listings, search and social ads for sellers already looking, driving for dollars, and referrals. The list matters more than the channel: owners with a foreclosure filed or an expired listing sold off-market at 12 to 13 of every 100 within a year in the county records, against about 1.5 for free and clear owners.
There's no secret channel. Wholesalers find deals the same few ways, and the ones who do it well are mostly better at one thing: choosing which owners to reach.
The channels
| Channel | How it works | Typical cost |
|---|---|---|
| Direct mail | Letters and postcards to owners on a list | About 55 cents to $1.33 a piece |
| Cold calling | Skip-traced numbers, called by you or a team | Skip tracing plus dialer and time |
| Search ads | Ads on "sell my house fast" and similar | About $13 to $35 a click |
| Facebook ads | Ads naming seller situations | Varies; judge on cost per deal |
| Driving for dollars | Spotting run-down and vacant houses | Time and gas |
| Referrals | Agents, attorneys, contractors, past sellers | A thank-you or legal referral fee |
The list decides the deals
| List | Of every 100, sold | Counties |
|---|---|---|
| Foreclosure filed | 13.1 | 99 |
| Listing expired or cancelled | 11.9 | 492 |
| Lien filed against the property | 4.2 | 249 |
| Sitting vacant | 3.8 | 468 |
| Owns it free and clear | 1.5 | 2,170 |
Source: GoForClose count of off-market, arm's-length deeds in county records.
Same channel, different list, very different results. That's why two wholesalers mailing the same city can get very different deal flow. Every seller type, ranked.
The timing
Each list sells in its own window: expired listings early, foreclosures across the year. The wholesaler who reaches the owner in the month they decide gets the deal. How often to reach each list.
The follow-up
Most owners don't sell on the first contact. The deals go to whoever's still in touch when the owner is ready, and answers the phone. Read your county free to see which lists sell there.
Questions investors ask
Where do wholesalers find their deals?
From owners who sell off-market: reached through direct mail, cold calls, search and Facebook ads, driving for dollars, and referrals from agents, attorneys and contractors.
What is the best way for wholesalers to find motivated sellers?
Start with the list: owners with a recent filing, like a foreclosure or expired listing, sold off-market far more often than owners on standing lists. Then pick the channel you can afford to run consistently.
How many deals does a wholesaler do?
It varies widely. New wholesalers often take 60 to 90 days or more to close a first deal from mail; established ones run a steady pipeline across several channels.
Do wholesalers buy leads?
Some buy pay-per-lead leads; most build their own from public records and marketing. Bought leads cost more each and may be shared.