Building a Buyers List
Venturing into the world of wholesaling can be a very lucrative decision. If there has ever been a time when buying and selling houses is proving to be profitable, it is definitely right now. One of the most important steps to take before you begin the wholesaling process is building your buyers list. It is crucial to have a list of investors already in place for a variety of reasons. It determines what areas of town you should focus on, it ensures that your houses will sell quickly, and it keeps the cash flow positive.
Having a variety of different types of investors can prove to be invaluable. Making sure to include both high-end and low-end property landlords, contractors, rehabbers, new and seasoned cash buyers, as well as bargain buyers and wholesale buyers in your list puts you in a position to sell houses at every level.
There are several ways to go about finding buyers for your list. Begin building your list of buyers by marketing to the masses. Placing ads in the classified sections of the newspapers and also replying to current classified ads are good ways to start. Sending direct mail to mortgage brokers and realtors can and connect you with potential investors. Another way to network with potential buyers is by visiting your local Real Estate Investor Association (REIA) clubs where. Use your business cards and get as many business cards of others as you can. Visiting local churches and letting the priests, pastors, etc. know what you do and offering your help to parishioners and members of the clergy is another way to connect with possible buyers.
Take advantage of the massive resources technology has to offer. Place ads in online classified sections, Craigslist, and eBay. Peruse specialty websites such Home-Buyers.com, Buyers.com, FindMoreBuyers.com, and We Buy Houses.com. A great resource for finding non owner occupied leads and wholesale buyers is Listsource.com. Leads for landlord type buyers can also be generated via websites such as Socialserve.org or by just Googling the public housing authority for a specific area and viewing the section eight units. Other buyers can be found on websites such as Kijiji.com, and Backpage.com. Take part in online forums and websites specializing in real estate. Peruse websites like Craigslist and eBay. Join and visit social networking sites such as Facebook, MySpace, and Twitter. Media marketing on television and over the radio is another way to generate leads.
When you do get responses from possible buyers you need to make sure you ask them the right questions to establish your relationship and secure the potential for future deals. Knowing the right questions to ask is key. Besides asking for general information such as name, telephone number, and email address, you should also ask for what areas they prefer and if they can close with cash immediately. Asking what their price range is and if they would be interested in future deals is beneficial. Investors should also be asked if whether or not they are interested in rental properties and rehabbing opportunities. Inquiring about specific criteria will allow you to create a more clearly defined list of buyers in your database. Building a buyers list is an ongoing process and should be constantly monitored, refined, and growing. When the list has been established, it is time to find the deal and the money will come.