Everyone involved in real estate investing should have a reliable buyers list. Whether you focus on the wholesale side of the business or are a buy and hold investor you never know when you will come across a deal that needs a quick transaction. How quickly and easily you can turn these deals over will directly impact your bottom line. Building your list is easier than ever before. There are many ways you can build your list without dedicating hours on end. Even if building a list isn’t your top priority you should always keep your ears open for potential buyers. Here are five ways you can quickly build your buyers list.
- Networking. Building your buyers list often means focusing on your local market. Start by listening to the people you talk to at local networking events. Without even knowing it they may disclose how, when and where they buy. If they tell you about a recent cash transaction they were part of you know they may be interested if something comes there way. Ask them about what their ideal purchase scenario is and where they may be willing to buy. The more information you have the easier it is to find the right buyer if a property is presented to you. Additionally you should use local real estate investment clubs as another opportunity to find buyers. At REIA meetings you will talk to everyone from local real estate attorneys to hard money lenders. Use the time before the meeting starts to accumulate as many business cards as you can. From there you should follow up within 24 hours to get a better idea of specific buying tastes. You can probably build your buyers list exclusively from networking if you put your mind to it.
- Bandit Signs. Every day you probably drive by opportunities to find buyers without even realizing it. All of the signs you see that say “we buy houses” or “quick cash closings” are potential buyer leads. Even though you aren’t selling anything you need to give these bandit signs a call. Judging from the signs alone it is a pretty good bet that they are open to buying any type of property. Just like you did at your networking events you should ask specifically what kinds of properties they are looking for. You never know when you will get a niche property that on first glance you can’t do anything with. The more prospective buyers you speak with the greater chance you can cover all your bases. Some buyers look for mobile homes, condos or other unique property types. Others are exclusive to multifamily & commercial properties. Every bandit sign you see in your area should get a call and be placed in a spreadsheet with specific buying criteria noted. When you get a property that fills a specific need you will be able to quickly reach out to a buyer and make a deal happen.
- Craigslist. Craigslist is still a great way to find prospective buyers. If you go on the site almost any day you are bound to find at least a half dozen potential buyers. Some will come right out and state that they are interested in buying real estate and will offer a finder’s fee. With these listings you have to do a little homework. Instead of looking at properties to buy you should look at some listings for sale. These listings are often from sellers who at one point purchased the property, did some work and are ready for their next project. With these listings you have the advantage of seeing the property they have completed which may be their sweet spot in terms of style and location. Start by sending them an email explaining what you do and how you do it. You should also always place a phone call whenever a number is listed.
- Social Media. Social media works in much the same way as Craigslist in that there are multiple ways to find new buyers. The first is by connecting to as many people attached to the real estate business as possible. Every local real estate agent, attorney, mortgage broker, accountant and hard money lender may have a potential buyer client. Once you are connected you can reach out to connections that they may have and go from there. You can also use social media to make posts looking for buyers. A generic post asking if anyone knows anyone that may be interested in quick real estate transactions should be enough to get the ball rolling. If you make similar posts every week you can probably find a handful of solid leads in no time.
- Cash Sale Lists. A final way to build your buyers list is by looking at who has purchased real estate with cash in the last few months. Your real estate agent should be able to quickly run a search on the multiple listing service (MLS) and find this list for you. From there you can go to town hall and find the address they pay their taxes on as well as possibly a phone number you can call. It is important to remember that you are not cold calling these people and shouldn’t feel intimidated. You are offering them a chance to buy property that you gain access to. They are the ones that are realizing a benefit. Most good investors will recognize this and appreciate it. The few that give you a hard time and question why you are calling you can quickly cross off your list.
By making just a few calls or emails every month you can quickly build your buyers list. You never know when a good list will come in handy.
