How critical is it to build a buyers list before I actually start buying properties?
I’m a total newbie but I would imagine you should start networking and have a group of investors already in mind to contact before you begin to even consider buying a house to flip. Of course if it’s an amazing deal you can’t pass up pick it up immediately and then worry about finding an investor, if it’s that good you’ll have no problem flipping it to a retailor. Just remember not only do you need to make a profit but the retailor does too…if it is getting too close to closing you can always drop your price and reduce the profit on your side just to close within time…hope that helps some.
Major newbie here too, so dont take anything I say as scripture… But, from the endless pages of matieral I read on REI – finding the investors/buyers is the easy part, provided the deal is THAT good.
I was wondering the same thing, cause I’d like to get a buyers list moving asap, and I dont see any harm in being proactive – but I worry that, if I start to get responses before I have anything to offer, I could be killing leads.
which came first, he chicken or the egg ? the list should come first i would think. i mean, these people arent just buying from you ya kmow. i think it would be best to know your buyers needs, then find them the product.theres lots of products out there, but knowing what your customer will buy can help you weed through the rest and get you down to knowing what you cam/cant move. i too am a newbie, but this would be my answer. if i am wrong, please correct me somebody. as we are all learning on here, and need not to pass along wrong info if we can help it.
thanks
rick
Once you as the wholsaler find a property and negotiate with the seller, how long can you usually go out before closing. Is there a timeframe say 30…45…60 even 90 days before the house would go to closing? Obviously the longer out you can go, the better chance you have to get top $. Any idea what the norm is.
It really depends on your end goal. This being the birddog/wholesale forum, I would imagine your end goal is to flip wholesale. In that regards, I would definately build a buyer’s list first - matter of fact, it’s practically a requirement. However, if you plan to flip retail or use a buy-n-hold strategy, a buyer’s list isn’t as crucial. It can still help in case something comes up later, but it’s not as crucial if you aren’t going to flip to another investor. Additionally, a buyer’s list up front can help you find other members of your team, regardless whether you wholesale, retail, or hold. Others may have better insight into people and methods that can potentially save you $$$.
I am also trying to create a buyers list. Does anyone have any helpful ideas?
I have a few great beach front properties ready to go.
From the Articles Sections:
Being able to generate quick cash on a consistent basis is exactly what gets you to full-time real estate investor status, or can take your current real estate business to the next level. Being able to wholesale properties boils down to being able to get those properties sold QUICKLY!!!
From the time you put a contract on a property the clock is ticking and you must be able to get it sold quickly. I constantly see the one ingredient that many investors are lacking which is keeping them from thousands of dollars and that is:
A Strong Buyer’s List!!
In wholesaling properties for quick cash, having the best deal in the world will do you absolutely no good unless you have a qualified buyer that can close quickly. Think of it in terms as your deal being the “check” and your buyers being the “bank” where you cash it.
In fact having a strong buyer’s list will allow you to Even wholesale some “marginal” deals. Buyers work off different profit margins and you just won’t know what the market will bear unless you have a strong buyer’s list and a quality communication system to get that information out to your buyers.
So that’s the question then on how to develop a very strong buyer’s list. Let me share with you some key resources to have a quality and sustained buyer’s list so when you have this resource to support an effective marketing program, it will result in check after check with your name on it.
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SECTION “8” RENTER’S LIST
Section 8 is a great way to get some very quality buyers. Go down to your Section 8 office seeking the list of properties for rent. From there it is very simple to call the owners on the phone number listed and inquire, “can I please give you a call when I get a truly great deal?”. Then just add them to your buyer’s list and get ALL their information. Section 8 landlords are a tremendous source of quality buyers for especially junker houses. -
PROPERTY MANAGEMENT COMPANIES
This is a technique that only works IF you show up in person. See, if you’ll simply walk through the door at a property management company and ask if you can bring them a truly great deal for one of their customers if they want to buy another property. If it’s a bona-fide great deal and they communicate the deal with one of their existing customers then its win-win-win. You get the quality buyer you need, the customer gets the property they want, and the property management company gets another rental property to manage. -
CLASSIFIED ADVERTISEMENTS
I’ve taken out a number of classified advertisements to get potential buyers to call like…
- Rehab specials, 555-1212
- Blue-light handyman specials, 555-1212
You may not have ANY houses in inventory and it’s still all right to run these advertisements. Just simply say, “I don’t have any houses in inventory right now but can I call you on my next great deal?”. They will say “yes” by all means and then be sure to get ALL their contact information.
- INVESTOR CLUBS
I mean what else can you say? You ought to be soliciting contact information
from all those you can that attend those meetings. Many will be the exact type of buyers you will be seeking.
So, there you have it. To develop a quality buyer’s list its just not rocket science but if you will really put some time and emphasis in this part of your real estate business it will pay you huge dividends in life and that being in the form of checks with YOUR name on them!!
A couple of other suggestions:
- Drive the areas where you are finding properties. Call the “For Rent” signs…those will be landlords in that area. Stop by the houses under rehab…those might be rehabbers in that area (some will be homeowners).
- If it is an area of town (say, a warzone) where you don’t have any buyers, then have a realtor run a check on the MLS for all the “MINT” to “Execellent” houses in that area. Those will be the ones recently fixed up, then call the listing agent. That agent can have investors they work with. On my last deal, that is exactly what I did and the agent had an all cash offer on my fax the next morning. I gave her a $1500 commission and she handled all the paperwork.
A strong buyer’s list is vital, but don’t let it stop you from finding deals in the meantime. It is amazing how motivated you can become to find a buyer when you have a good deal under contract.