Every wholesaler knows that you will only be as successful as the list of buyers you have. The question every new investor wants to know is shall I work to build a large list of potential buyers or a small quality list of quality buyers?
When you first start wholesaling, you want to get the names and contact information for as many potential buyers as possible; however, in the long run, you will want to make sure that your list is filled with quality buyers, not just people looking to receive free gifts, reports or a real estate course. Keep in mind, everyone who joins your list has an interest in real estate and is a potential buyer, but will they purchase your property when it becomes available?
There are numerous ways to build your list. The four easiest, low cost ways to build your list of potential buyers are outlined below.
The daily newspaper is a great place to advertise for potential buyers; however, it can be expensive depending on how many newspapers and how often you plan to post. There are several free, top ranked websites you can use to post ads. Craigslist, Oodle and Kijiji are just a few that I use because they are free and they provide great results. You just simply place classified ads that read, “Attention Homebuyers -Homes at 60-70% ARV” or “Investor’s Special – Thousands $ $ below Market Value.” In the text, you want to give a brief description about what you can offer and then provide your phone number and your website, if you have one. Once you post your ads, sit back and watch the responses come in.
Respond to Online Advertisement
If you look at the free classified sites I discussed above, you will realize that there are hundreds of other investors out there doing the same thing. Why you ask, because it works. Another way to increase your buyers list is to contact your competition. Respond to the investors who are selling houses and introduce yourself and find out what types of properties they’re looking to buy. Ask if you can add them to your list, you’ll be surprised on how many say other investors will want to be added to your list. Remember, you can be a good resource to other investors who are interested in rehabs or rentals.
If you have time, attending your County’s Real Estate Auction (Foreclosure, Tax Sales) can provide you with a list of several serious buyers. People who attend these auctions are looking for one thing, to buy property. These buyers either have their own money or are backed by private funds to acquire multiple properties. Make a list of who buys what property and once the sale is over, approach the buyer and introduce yourself to them. Most of the time, the investor will agree to be added to your list with the hope of finding their next great deal. Keep in mind, when you are at the auction, make sure you identify the difference between an investor and a person looking to buy their first and only home.
Hand out flyers or postcards. This might cost you a little money up front, but remember this can be a great return on investment if done correctly. Look at local apartment complexes around your community as these are people who are currently renting and who have the dream of home ownership. Many people who rent often do so short term. Another great place to hand out flyers or postcards is at the local “Laundromat.” Your flyers should give a brief description of what you do and how you can help them. It should also direct them to your phone number and your website.
When people start to call, believe me they will, you want to obtain the following information:
- Name of individual and/or company
- Address, phone number, fax number and e-mail address
- The type of property they are interested in (Single family, Multi-Units, etc…)
- What is their budget
- What is the level of rehab they are looking for
- The location they are interested in
As you are building your list, look for those investors or buyers who provide information on what they are looking for in a property. You should still send the deal to your entire list of buyers via e-mail, but place more focus on your serious buyers by calling them over the phone. If you can build a list of serious buyers, you will have a long and profitable career in wholesaling.
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