I have seen many shifts in the local real estate investing market of Memphis in my 6 short years as a full time investor/wholesaler. What has become the norm for most all wholesalers is that they all for the most part work with an affiliate to help sell their investment properties. Affiliates come in all shapes and sizes. Some are credible and care about their clients and some only care about the all mighty ( weak ) dollar. Some are a large company who has a full system in place and some are clients who refer you their co-workers, friends and family. One thing is for sure in that they are all expensive meaning they demand a hefty fee for bring a buyer.
Not that long ago companies like ours were working directly with investors who in most part found us from doing an online search and then coming to our website and calling us. Those were the good ole days circa 2009. Ever since 2010 is has become more frequent that we rely heavily on someone else to bring buyers our way. When business is booming and the sales are pouring in we don’t think of finding our own buyers but when things slow down a little we start thinking on how we can attract or find buyers where we don’t pay huge affiliate fee’s to.
Regardless of what we think of the affiliates, when you stop to think about it, it is probably cheaper to pay their high fee’s then to go out and spend thousands on marketing and advertising as those are avenues where you are hoping for results as paying the affiliate you are paying for REAL results. Facebook, Twitter, Linked In, Biggerpockets, Magazine advertising, Blogging, Website SEO are all methods to get your company brand out there, questions is, does it really work? Only time and effort will tell. If you figure it out please let the rest of us know the secret!