One of the great things about the real estate investing business is that you never know who you will work with on a given deal. You may think you have no need for a buyers list, but it is always better to have one and not need it than to need it and not have it. The common assumption is that a buyers list is something only wholesalers need. In reality, everyone in real estate comes across a deal from time to time that they need to pass on. With a trustworthy buyers list, you can profit from the deal instead of simply rejecting it. Your buyers list needs to be more than just a list of everyone you have spoken with in the past. The more specific you can get, the more successful you will be. Here are some tips for growing and developing a strong list of buyers:
1. Always Add To It: Building your list is something that you should be doing every day. You never know when you will need to find an end buyer for a rehab or fellow investor to flip a contract. It is important that you take note of everyone you talk to, and what they are looking for. It also helps if you get a head start on the entire process. If you start your search when you need a buyer, you are likely already too late. You may currently have a successful business, but things can change on a dime. This requires you to get out there and talk to as many different people as you can. Don’t just talk to them, ask questions about their business and their goals. You can learn a lot by listening. Take this information to slowly build a quality list.
2. Get Specific: The best way to find a buyer as quickly as possible is to get specific. When you initially meet someone, you may not be able to ask as many questions as you would like. Over time, however, you should ask specific questions to get an idea of exactly what they are looking for. Find out which locations and price ranges they may be interested in. Ask what style of house they want, and when they may be looking to close. See what kind of financing they will use, and if there would be any restrictions when a deal comes their way. This information should be compiled in a database, and easy to retrieve at a moment’s notice. Get as much contact information as you can. Ask for a business card so you have their email, phone number and website. When a deal comes your way that you need a buyer for, you can place individual calls instead of blasting them out to you full list. This adds a personal touch that will increase the odds of returning a favor if you need one. Not only that, but it will increase the chances that you will find the right buyer for your deal.
3. Anyone Can Be A Buyer: The longer you are in the business, the more you start to realize that anyone can be a buyer. Someone not associated with the real estate business can make an offer on a property you own. The key is to treat everyone the same. To widen your net, start by sending all of your personal contacts a mass email. If you haven’t already, explain to them how you are in the real estate business. When these deals come your way, ask if they would welcome a phone call or email from you. In most cases, you will get at least a handful of interested responses. Not only is this a way to find potential financing on deals, but a great way to find buyers. Even though you would never think that your Uncle or past co-worker would be interested in real estate, you truly never know unless you ask.
4. Keep In Contact: Making a connection or having an interested buyer is only good if you keep in touch. You should spend just an hour a week reaching out to your buyers list. A quick call, text or email can help you cement your relationship. You don’t have to call everyone on your contact list every week. One call once a month is sufficient. Find out if anything has changed with their buying preferences. You may be surprised to find that they not only want to buy, but may want to partner up on your next deal. This could open the door for funding, and allow you to close more deals. You will never know what options you have if you don’t reach out and stay in touch with your contacts. Most calls will not be longer than 90 seconds, but can be the most important thing you do all day.
There are many different ways to build your buyers list. The most important thing is to constantly stay on top of it. You need to be able to quickly access your list whenever an opportunity arises. Most investors, especially new ones, have free time during their day. Instead of wasting time surfing the internet, spend it cultivating your buyers list. You never know when you will need to find a buyer.