The prospect of building a buyers list may appear relatively simple on the surface. However, it is the most valuable, quantifiable asset you will have over the term of your business. Having a list of pre-qualified buyers at your disposal will result in transactions that are both timely and profitable. Therefore, maintaining a buyers list will require routine maintenance, upkeep and your undivided attention.
Those fortunate enough to have already created a performing buyers list are well aware of the attention such an asset deserves. It is not enough to create a list at the beginning of your real estate career and relegate it to the way-side. Doing so would not only disrespect fellow investors, but also exhibit a deserving sense of ignorance on one’s behalf. Neglecting to update your list, adding and dropping buyers when necessary, is simply a bad business move.
Conversely, take advantage of your buyers list as an asset that can further your career. Take the time to maintain relationships with buyers that are already on your list, but be sure to establish new ones over the course of your career. Long after your initial contacts have been recorded, you must constantly market yourself and generate brand awareness. Devise a marketing campaign to sell yourself to potential buyers. It is imperative that you understand how to find buyers for those properties you intend to sell. Building a buyers list is the fastest and most effective strategy for selling your homes.
Marketing Campaigns That Will Build Your Buyers List
Networking aside, a deliberate marketing campaign is the best way to attract buyers to your list. It is important to view this strategy as if you were marketing to a prospective seller. The same techniques you used to acquire a property may be applied to selling one; with the only difference being the message that is conveyed.
Unfortunately, it has come to our attention that real estate investors wait too long until they initiate respective marketing campaigns. This is often an exercise in futility, as waiting too long to establish a buyers list is not conducive to your bottom line. It is of the utmost importance that you begin a marketing campaign to establish a buyers list as soon as you become an investor. This takes precedence over the acquisition of your first property.
There are several marketing platforms that you can use to find buyers, most of which can be implemented immediately with relative ease. The following is a comprehensive list of the most popular marketing campaigns to create a buyers list:
1.) Email Blasts
An Email blast is an efficient method in which a myriad of potential buyers can receive your message. With the click of a mouse, countless individuals will be made aware of your intentions. It is important to send your Email blasts using a professional broadcasting service to maintain legal compliance, gain maximum exposure and to stay off blacklists. In the Email, you want to include several links to your website and squeeze page. Recipients of your Email should include: other investors, Realtor lists, mortgage broker lists and title agent lists.
2.) Reverse Bandit Signs
Similar to that of a bandit sign campaign, a reverse bandit sign campaign is critical to the success of any investor. Accordingly, the exposure generated by this technique is highly targeted and cost effective.
Place the signs in areas that will receive high rates of exposure. Be sure that you are specifically targeting “Investor Buyers,” not sellers. Include only your website address, as it will direct potential buyers list candidates to you. It is important to understand the laws in your specific region pertaining to bandit sign placement. Some areas have restrictions and signs can’t be placed.
Use bandit signs from other investors to establish subsequent contacts. The placement of their sign implies that they are in the market for a property. Perhaps you have what they are looking for.
3.) Direct Mail
Use direct mail to reach candidates for your buyers list. For this particular method, it is important to remember that consistency is key. Once you have effectively implemented your campaign, it is important to maintain contact with prospective buyers. Be sure to mention the advantages you may provide for each individual, as they will require a reason to partner with you. Step into the shoes of the buyer and think of reasons why they would choose to do business with you. Craft your benefits around those reasons and they will likely reciprocate their appreciation.
Assuming you already have a website, it is imperative to take advantage of it. Enable your page to capture the names and Emails of potential buyers list candidates. Use relevant blogs to attract them, but you must receive their contact information. Investors are advised to have two websites, one focused on the needs of buyers and the other on the needs of sellers. Each will require a method to obtain contact information, properties you have for sale and pictures of the respective houses.
Craigslist provides investors with the opportunity to contact those that are buying or selling. It is essentially an online database in the form of a classified ad. With the proper search criteria, you may be able to make relevant business contacts with hard money lenders, mortgage brokers, appraisers, title companies, and a host of other real estate professionals that could benefit your buyers list.
6.) Social Media
Social media sites like Facebook and Pinterest have entrenched themselves as a valuable tool for any real estate investor. They facilitate a great way for investors to make their presence known and to market properties for sale. They are both efficient and cost effective. By taking advantage of social media, you are awarded the opportunity to network with individuals you would have otherwise never have met. They have the potential to build a buyers list bigger than you could have ever imagined.
7.) Newspaper Advertising
Newspaper advertisements and local publications are still a great source to generate exposure. Buy ad space to make your presence known and convey your message. Furthermore, you can use them to search for potential buyers.
Evaluating and Pre-Screening Buyers
While marketing campaigns are essential to developing a buyers list, it is equally important to delineate between the buyers you attract. You must become efficient at pre-screening and evaluating your buyers list candidates. Do not waste time with buyers that are unwilling to contribute to your bottom line. Maximize the way your time is spent by eliminating the guesswork and inconsistencies associated with unqualified buyers. Their presence on your buyers list will only hamper your efforts to sell a property quickly.
The first time you pre-screen a potential buyer; you must obtain as much information as possible. This will mitigate the risk of wasting time on buyers who are not absolutely serious or don’t have the means to close on a transaction. This can often transpire over the phone and must reveal their particular goals and aspirations. This is also the perfect time to gauge their knowledge, experience, and willingness to act on an opportunity. Above all, however, be sure to establish a rapport with the potential buyer. Remember, this is an industry built on relationships.
Pre-Qualifying Buyers List Candidates
When entertaining the prospects of a wholesale buyer, it is important to focus on quantity first, with quality being a subsequent factor. You shouldn’t go in-depth trying to pre-qualify a buyer as soon as you are introduced. For the majority of buyers, their ability to purchase a property varies considerably based on their particular situation.
Conversely, you absolutely want to pre-qualify your buyers before you refer to them for a potential transaction. It is at this time that you should verify the information provided by each buyer. You must know, without a doubt, that they have the ability to close on a deal should the moment arise. The best resource to use when qualifying buyers is to put them in contact with one of your financing team members.
Being proactive in this step will assure that all of your time and effort spent on the deal will not be wasted due to refused or lost financing.