You never know when you will come across a deal that doesn’t quite fit with what you are looking to do. When these types of deals come your way, it is important that you can still find ways to generate income from them. One of the ways to earn is by wholesaling them to a fellow investor. Under this scenario you can either assign the contract over or pass along the terms to an end investor. Without a strong list of buyers list you will not be ready to act and the deal will fall through the cracks. Finding end investors, and building your buyers list, is something you should constantly focus on. The more investors you can pass a deal off to the more likely you can earn on whatever scenario you are faced with. Here are five steps to help build a strong buyers list.
- Get Out There And Meet People. Building a buyers list is like building a personal network. If people don’t know you are in the business they will be less likely to respond if you have a potential deal. The first step for building your list is getting out and meeting people. Showing up at local networking clubs may feel like a waste of time but you never know when they will have an impact. With everyone you meet and every conversation you have you should discover a little more about the person you are talking to. Eventually you will build enough trust and comradery that they will be open to working with you. In addition to local networking meetings monthly investment clubs are also a great way to get your name out. It is important to get as much contact information as you can with everyone you talk to. Building your list is a numbers game in that the more people you meet the better your list will be.
- Transaction History. There are times when building a buyers list requires just a little bit of legwork. Every real estate transaction is a matter of public record. When you are just building your list you should narrow your focus to a particular market or sub area within that market. From there you should go to townhall once a week and review all the transactions for that area. See which were cash transactions or if the owners address is different from the subject property. These are indicators that the buyer is most likely a real estate investor and is active in that area. From the information at town hall you know their name and address and can either send them a traditional letter or do a little digging and find an email address. Don’t stop with just one attempt. You may need to email them five times before you get one returned. Once a connection is made you should try to set up a meeting and go from there.
- Bandit Signs. It is a common misconception that buyers are hard to find. All you need to do is drive for then minutes and you will most likely find one. These buyers don’t advertise on huge billboards but rather the tiny bandit signs you see throughout town. Bandit signs often promote candidates running for office but you will see them on telephone poles or in busy intersections saying, “we buy houses” or “quick, cash closings”. Like any other potential buyer, you need to find out exactly what they are looking for. Ask them about their ideal market, purchase price, style and even condition. Explain to them that you are a fellow investor in your area and occasionally you may come across a deal that isn’t for you. They should be open and receptive to you considering that they would be the one to benefit. If you reach out to five bandit signs you will probably find one investor you feel is the best fit and the one you would want to work with if a deal came your way.
- Social Media Marketing. As you are just entering the business you should focus on generating a buzz through social media. As your business progresses you can use these sites to find buyers. Once a week you should generate a post looking for potential buyers. Since you may not have an active deal you should leave your posts vague. State that you are looking for local investors to work with on specific deals. The investors that respond will be the ones you want to work with. Once they respond you should ask to meet for a quick cup of coffee to get a better idea of what they want. Even if you aren’t on the same page as far as property types you will meet a fellow investor which you may bump into down the road.
- Follow Up With Contacts. In addition to making weekly social media posts you should also have a weekly follow up plan with your existing contacts. Keep every investor email in a separate folder and use that to keep in touch. You can send them general market updates or if you have a specific property you can blast it out. The key to getting a response is to call for some kind of action. Ask them to meet or to email about how you can grow your business together. Everyone gets dozens of emails every day. If yours does not stick out you won’t get the response you desire.
Building a buyers list is an important part of building your business. You never know when you will need it but it is a great thing to have.
