Building a list of buyers
Your list of buyers is your black book that you should not let others read. You NEED a good list of buyers to be successful in wholesale real estate. Think of it this way, how much easier is it to make the right purchases when your wife gives you a list instead of trying to “think” of what she wants? Try the latter and it’s a quick way to get into a fight.
You must have a wide range of buyers. Low-end home buyers, high-end homes, rentals, multi-units, rehabbers, first-timers, and as many cash buyers as you can find. These guys make life easy!
Here’s a great list of places you can look to find buyers…
Post ads in your local classifieds
These ads should be simple and direct. Use a generic ad like “House for sale – 60% ARV in Good Town Town”. When people call, simply tell them that you don’t currently have any, but that you’ll call them when you get your next property.
craig’s list
Run the same ads you place in the classifieds here. Put a phone number and email address on your ads, or better yet, create a capture page and direct them there to sign up. Just remember to keep the ad simple, people tend to stop reading if the ad is too long or complex.
Call to rent signs/signs
Why would you call for signs for rent? Well, because the person renting the place, the landlord, could be an active investor and looking for more properties. If your area is a high rent area, you will find so many buyers that it will be fun.
Call for sale ads
While calling for rent signs, you can also call for sale ads. Track the seller, and if you find multiple homes being sold by the same person or company, you’ll know you have an investor.
We buy house signs
These are obviously investors and if they are active and looking for houses, you want them on your list.
Call real estate agents
Who has access to most buyers? estate agents! Ask every agent you meet if they have cash buyers. If they get your information or have the real estate agent give them one of your cards.
ask your buyers
They can be very protective of their buyer lists, but it doesn’t hurt to ask. You might even consider paying a few bucks for your list. Just make sure it’s legit.
Local REI Meetings
Where all investors meet. There is no better place to find a buyer than at one of these meetings. Pass a registration form and also meet as many other investors as possible.
box flyer
If you have a home for sale, place a box of brochures outside so any passing investors can get your information and contact you for other offers you may have or find.
Staggered courthouse auctions
Another meeting place for investors. Basically, you want to go wherever investors are and hand out your business card, as well as collect business cards.
create a blog
This will increase your credibility and help you network with other investors. Those relationships you build here will definitely lead to future buyers. This is more of a long-term strategy that should be used in conjunction with the others mentioned above.
hard money lenders
Investors need to borrow the money from somewhere, so you know that hard money lenders have a long list of customers who would likely share or at least pass on their card to you.
MLS is looking for cash buyers
In some MLS systems, they keep track of how the home was purchased. Was it paid in cash? if so, you possibly have an investor, AN INVESTOR WHO BUYS FOR CASH. Be sure to contact this person and see if you are buying more.
The list above should really provide you with a very good list of buyers. Remember to always work to add buyers to your list as investors come and go.
Now you want to know what information you should get from your potential buyers when they contact you. I usually ask the following…
- I usually ask them if they still buy,
- what they are looking for,
- what percentage of FMV are they normally paying,
- in which areas of the city they want to buy.
You also need contact information, so get these items…
- Email address
- Company Name
- Name and surname
- Company address
- Preferred Phone
- Type of property you are interested in: Single-family, Multi-family, Commercial
- cash buyer
- What level of rehabilitation are you comfortable with?
I hope this helps…