Does door knocking still work for drumming up inventory for real estate wholesalers?
The trend in door knocking to find deals and homeowners willing to sell has been on the rise recently. This is especially true among Realtors, with some real estate gurus pushing it hard. What works for real estate agents looking for listings often works for investors looking for inventory to flip.
So does it work? Does it make sense?
It can certainly work, and in some cases can be highly effective for locking down great deals fast.
If you are driving and see a home is neglected, has come up on your radar for other reasons, and the numbers could work, or a for sale sign has just gone up then consider knocking on the door or at least leaving a note if no one answers.
Of course there can be hazards to this wholesaling marketing strategy. People in many areas of the country aren’t used to strangers knocking on their doors anymore, and arriving at the wrong moment could see you scrambling away while ducking a blitz of bullets.
As with all trends door knocking will eventually suffer the usual cyclical challenges too. If no one else is doing it in your area then it could be your way to get the edge. On the other hand, if you are running into half a dozen Realtors and other investors doing the same thing on your tours then you can bet homeowners are getting pretty fed up, and probably won’t be that receptive. So pay attention to what the competition is up to.
However, there is also the consideration of achieving the maximum wholesaling marketing ROI.
If you are just getting started and have no marketing budget at all, then this could be a great way to find your first few deals. Yet, also keep in mind that you also need to demand the maximum possible ROI on your time too, not just dollars. For example; compare knocking on a 100 homes a week and doing nothing else, yet only getting two answers and one offer accepted, versus attending organized networking events where you can connect with 100 prospects in one hour. Or how about online marketing via blogs, social, email, or Google AdWords; where you can essentially get in front of billions of prospects each day for a few dollars or even free.
So in conclusion; absolutely drive your ‘farm area’ once a week (preferably on weekends’, door knock and leave notes, but have your automated wholesaling marketing machine working for you the rest of the week