Whether or not you prefer wholesaling to rehabbing, you never know when you will need a quick buyer. The more buyers you have access to, the greater the chances you have at selling a property. That is where the buyers list comes in. Building a buyers list may seem daunting, but there are many easy steps you can take to quickly form a database. If you make the commitment to focus on just one area for a few hours every week, you will have more potential buyers than you know what to do with. Those buyers, in turn, will be an essential part to your business.
Friends & Family:
When building a buyers list, start with the people that are closest to you. How many friends and family do you have that don’t know you are an investor? A quick letter or email to these people letting them know that you are in the business is all it takes. If they follow up, you should ask them if they have an interest in being notified of any deals that come your way. If they responded in the first place, chances are that their answer is yes. However, you should also ask what criteria they may be looking for. The more specific you can be with your list, the greater the odds you can find a property they want. For those looking to build a wholesale buyers list, friends and family can be a great resource to begin your journey.
It wasn’t long ago that the classified section was the only source if you wanted to buy, sell or rent a property. Most newspapers have a weekend edition that will list every home for rent or for sale. Every house for rent is owned by a landlord that may be looking to buy more property or sell their existing one. Give them a call and gauge their interest in being added to your list. For every angry call you get, you will get one that is open to getting an email on any potential deal you may have. It won’t take you more than 20 minutes a week to buy a newspaper and make a few calls, but it can have a big return.
For all of the negatives associated with Craigslist, it is still a very popular source for buyers, renters and sellers. In much the same way that you contacted classified listings, you can utilize Craigslist listings. Instead of calling, you can present an email to the listings and keep records of your communication. Many of your emails will go without a response, but those that do get back to you should be serious buyers. Take the time and prepare a short, professional looking email that answers enough questions the recipient may have.
Property Management Companies:
Reaching property managers or property management companies is best done with repetition. You can walk into most property management companies and explain to them what you do and ask if you can reach out to them or the owners the next time you have a potential deal. Most of them will be open to the idea, but will have plenty of questions. Make sure you are ready to answer them.
Investment Clubs & Networking Groups:
This will be the area that has the highest population of investors in your market. Out of every investment club meeting, 80-90% of them are investors. You won’t be able to reach every one of them in your first meeting, but if you spend time networking before the actual meeting starts, you will be on your way. The most important thing with any new contact is to follow up with them after your initial meeting. If you get a card and don’t call it for a few weeks, it will lose its impact. The next day after the meeting, you need to call or email while you are still fresh in their mind. All you are asking is if it is ok to put them on your buyer list. They have nothing to lose, so they will probably say yes. If you wait too long, they may not know who you are until the next month’s meeting.
A buyers list won’t magically appear over night. You need to constantly stay on top of it and contribute to it every week. Once you get your list together, you should have a database that you can easily access. In a perfect world, you will have some notes on what each specific investor looks for and what their target market is. You never know when you will come across a niche property that you vaguely remember one investor having an interest in. The more detailed you are with your list and your notes, the easier it will be to find a buyer quickly when you need it. Even after you have a good list, you should constantly stay updated with it and always look to add to it. Getting properties won’t do you much good unless you can do something with them.