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Hello🖐🏽, Haven’t been on here for a minute⏰...So I held my very first Open Hous🏡e last week for one of my deals recently, communicated out to the Investor Lift buyer's that showed an interest in the deal from the platform, as well as marketing was also done through other social media platform; where the “End Buyer”💰 had to contact me 📞directly in order for me to vet them. It was a great success!🔥 Holding an open house as a wholesaler can be a game-changer in your deal marketing strategy. I understand why many wholesalers rely on direct outreach or online ads, hosting an open house allows you to offer potential buyers hands-on experience with the property, while networking and building relationships.

Here's some reasons why it can be beneficial according to Chat Gpt, hope this will be a benefit to you, enjoy💼

  1. Increased Exposure to Buyers
    An open house allows you to attract both active investors and potentially new buyers who may not have shown interest otherwise. It brings property to life and creates a tangible experience, making it easier for buyers to envision the potential of the deal.
  2. Immediate Feedback
    You can gauge buyer interest in real-time and get immediate feedback about the property. This can help you adjust pricing, terms, or marketing strategies if needed, based on how buyers respond to the property during the open house.
  3. Building Trust
    Hosting an open house lets buyers interact with you directly. This fosters trust, transparency, and credibility, which can be crucial in forming long-term relationships with your buyer’s list.
  4. Efficient Deal Closing
    For motivated buyers, an open house might speed up the decision-making process. Seeing the property in person allows buyers to make more informed decisions quickly, potentially leading to faster closing.
  5. Networking Opportunities
    Open houses can attract other wholesalers, contractors, or real estate professionals, opening doors for new partnerships or referrals. The more people who visit, the more likely you are to expand your network.

Pros and Cons of Hosting an Open House as a Wholesaler

Pros:

  • Real-time engagement: Directly interact with interested buyers, answer questions, and provide additional context that might not come through in a virtual listing.
  • Efficient Marketing: Combining online marketing with an in-person show ensures maximum visibility, especially for deals in competitive markets.
  • Higher Conversions: Physically seeing the property can often convince buyers to move faster on a deal, especially if it’s a property that needs work but has strong potential.
  • No Commitment Needed: Unlike a traditional sale, an open house for wholesalers doesn’t require you to invest in the property, but it provides a chance to see if there’s serious interest.

Cons:

  • Time and Effort: Hosting an open house takes time, preparation, and effort, including advertising, setting up, and being present during the event. It can be resource-intensive.
  • Unqualified Buyers: Not all attendees will be the right buyers for the property, leading to wasted time with tire-kickers or people who are not serious.
  • Property Exposure: Having an open house means more people have access to the property, which can sometimes lead to issues such as theft or damage, especially with vacant or distressed properties.
  • Limited Reach: An open house is geographically limited. If the property is located far from your typical buyer pool, it could limit attendance.

What do you think about wholesalers holding open houses? Have you tried it yourself, or do you think it’s a strategy worth considering for your deals? What benefits or challenges have you encountered when hosting one? Drop your thoughts below! Thanks for reading🕶️

 

It seems like you are referring to a traditional open house that happens with some on-market transactions, with the "open house" signs all over the neighborhood directing traffic to the subject property. This is separate from a scheduled walk-through where you would want to get as many investors there at the same time to create that sense of competition. While not an open house, I did recently experience some neighborhood interest in a distressed home we had for sale. Every time I was there for a walk-through I would encounter people walking by asking about it. I let two walk it, and one made the second highest offer we received. The ultimate buyer did come through our marketing efforts and was a buyer looking for a fixer-upper to live in, not to flip for a profit. The result was a higher offer price. 

So I have no doubt it is a strategy that can work, especially in high-demand locations. I agree with your pros and cons, one additional item is 100% transparency with the seller. And this will trigger some, as depending on one's approach it will determine whether that is considered a pro or a con. Transparency has been a hot topic lately since like any industry, we have some bad apples who deceptively pretend they are the end buyer when in fact they are a wholesaler. They for some reason think they can't tell the seller that wholesaling is an effective strategy that can get their house sold. I have found that as long as the seller gets the agreed upon amount at the scheduled close they really don't care what happened to get there. Now of course there will be exceptions, like there is to everything, and some will dwell on those exceptions. 

Regardless, what such a strategy will require is some high level skill to ensure you really understand the seller's motivations (speed and convenience or price) so you can effectively manage expectations. Failure to understand that motivation will be the reason they get angry when learning about your fee. Speaking from experience, I didn't dig deep enough, and upon realizing my strategy the seller said "your just a wholesaler" and walked, despite language in the contract affirming that was a possibility! The lesson learned was I failed to manage those expectations. 
 

Thanks for sharing this experience ​@Zoerene 🙌 It’s always great to see wholesalers testing new strategies and getting results. Definitely inspiring!

​@Peter Osmanski Totally agree on transparency and expectation-setting with sellers…it’s not just about closing a deal, it’s about building a reputation that keeps the pipeline full long-term.

It would be very helpful to know if there are certain types of properties or neighborhoods where this strategy works best.

​@Peter Osmanski 

Can you tell that was my first one:) it’s was very tightly scheduled, no signs...I am not an Agent so that play is defiantly not in my playbook; it was defiantly a “Scheduled Walk through”. I am in agreement with transparency, that is really the only way I conduct my business, there is enough sellers that is needing the help if one decides not to do business with me, I just move on to the next opportunity.  The sellers had tried the MLS previously and was not able to sell the property, therefore, they were open to other alternatives.  

​@Lais Laudari  Since this was  my first one, I will have to assess with future deals that may fit this strategy, will keep you posted.

 

No ​@Zoerene I couldn’t really tell that was your first one! I have no doubt it can work. Also need to be aware of state rules, as such an open house would likely be considered “brokering”.  If licensing is required, just partner with an investor friendly agent. Then you don’t need to worry about jealous agents becoming whistleblowers!  

​@Peter Osmanski Good Morning & Happy Friday!  Appreciate the guidance; however, I used the wrong terminology in this write-up… My buyers was scheduled by me personally, who contacted me and wanted to view the property, therefore, it was in fact a “Walk through”. It was not marketed and the sellers was more than happy to work with me.  This is such an incredible community to ensure we are all working within the proper “Guard Rails”...I hope all Newbie’s are leveling up.  Have a fantastic and successful weekend. 

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