Hey everyone being new to wholesaling I finally have one house I am ready to get started in. I lack the buyers list needed to give information to possible buyers who are looking for property. I do have a current property is Mission, TX for $98,000. Can anyone help or is anyone interested in getting on my buyers list? I would greatly appreciate meeting new people as well. I hope to hear from you. Please PM me.
I have been telling wholesalers on this website for months and months you have to build your buyers list before you get a property!
You will only have about 10 to 20 days to find your buyer, sign an assignment agreement for the property and still have time for any inspections or appraisals and time for your buyers lender to close.
If the average days on market in your area is 57 days and it takes a listing realtor 57 days to find a buyer for their client and the realtor has the advantage of an MLS system where hundreds or thousands of realtors can access the listing data for their buyer client, you will not find a buyer without a buyers list in 20 days.
Now advertising the house for sale for 60% of FMV is great and you might find that buyer locally, however investors in New York have been buying Texas and Arizona real estate, California investors have been investing in Utah and Colorado and if you actually build a buyers list with more than a few names you will have a much easier time with transitioning properties and getting to closing.
Don’t wait to get a contract on a property and turn around and can’t find a buyer, unless your practicing wholesaling and have no intention of selling!
It worked for me but it probably wont work for you. My city in Central California has many investor/rehab/buyers. I often find deals 20 and 30% of fair market value because of the condition and the seller being distressed.
I advertised them on Craig’s list at 50% of value and I had to beat the buyers off with a 9 iron.
I didn’t have to run fake ads to get my buyers. And now I have a good list but I find it’s the same 2-3 buyers that buy everything I throw at them. Occasionally, when I have a deal that’s not too great, maybe mediocre. I still run ads on Craig’s List that usually results in a sale and new buyers added to my list.
But here I go again, answering your questions multiple times, However I understand your reluctance to believe this method works when 99% of investors tell you to have buyers first.
But that’s how I did it, I never lost sleep trying to get my properties sold, believe me, if you have a property at 50% of value it will sell fast. Many times my properties are sold in less than 2 hours, and I’m left twiddling my thumbs with nothing to do cept wait for the checks.
Call me old fashioned, but I believe you need to have a product before you have a buyer.
There’s more than one way to skin a cat regarding buyers.
Can I tell you that I don’t look for buyers in advance. I used to. However, by the time I found a house, the buyers were no longer interested, or they bought something else, or what I offered didn’t fit what they wanted after all, because (drum roll, please) they changed their minds on what they wanted.
I’ve discovered that Buyer’s shelf lives are shorter than day-old bread.
I think the biggest reason investors can’t unload their deals immediately is that they don’t have actual deals (for that market). They only have inventory. That’s not good enough. That, and they market their deals poorly, or incorrectly.
There’s: “Attention Investors: House For Sale.”
And then there’s: “Cash Steal - Call Before It’s Gone!”
As an investor, I might call both these ads, but which seller will I call first?
Direct mail can be used to find buyers. Pretty sure I’ve explained this exact strategy in a previous thread you started. Go to Zillow, find the recently solds in your area with a sales price far below market. Take the addresses and cross reference them with your county assessors site. Send mail to absentee owners from that list, focusing on what appears to be businesses; LLC’s, John and Jack Rentals, etc. Send them a letter stating you want to buy that house. They’ll call you back, mostly stating that the house isn’t for sale. They’re curious really, that’s why they are calling. When they call, find out who they are, where they buy, how much they buy for, etc. Put them on your buyers list.
I found a bunch of buyers this way.
Another way would be to have a realtor get you a list of cash buyers in your area. Then use a skip tracer to find the phone number of the cash buyers. Call them up.