Marketing: Buyers VS Inventory

One of the biggest debates and questions for those new to real estate investing is whether they should be focusing on marketing for more inventory or chasing buyers.

Of course to be successful in real estate investing you must have both. However those starting out on limited budgets can find they are spread too thin trying to do both equally at the beginning and that they do not make a big enough impact on either end. Those of you that have gone through the real estate licensing education course have probably been taught that building up inventory first is most important. The idea is that if you have the product the buyers will come. However it is not good to be sitting on inventory either, and these days you must market to buyers in order get their attention and stand out from the crowd. Having homes and no buyers is not a winning recipe for real estate investing success and can quickly drain your resources.

However if you are able to develop huge lists of buyers eager for properties you can certainly find properties for them. In fact you will slice your turn around time and be basically be working with pre-ordered homes. Everyone involved in real estate investing needs buyers and you will find that if you control the buyers you control your marketplace. If other investors, banks and Realtors want to sell their homes you can make quick deals flipping houses and bring in cash quickly. Once you have amassed more capital you can then extended your marketing to both sellers and buyers and move into strategies that offer larger profit margins like rehabbing.

Most importantly, start out by analyzing how much marketing it is going to take to make an impact and set yourself a steady budget that you can stick to.

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