Building and developing a strong buyer list is one of the keys for any new wholesaler. You can have a great deal but unless it sells it doesn’t make a difference. Like any other aspect of the real estate business strength is in numbers. The wider your net is the better chance you have of attracting a buyer. Fortunately, it is easier than ever to build your list. There are a few simple things you can do generate interest. From there you need to turn that interest into actual deals. Wholesaling deals are a great way to generate income but you need to have a strong buyers list. Here are a few ways to build and develop your list.
Building:
- Personal Contacts. When looking to build your list the very first thing you should do is look at your personal contacts. You may be surprised at just how many people you know have an interest in real estate. Start by making a list of everyone you know. Be sure to include any friends, family, co-workers, ex-coworkers and anyone you know. There is no reason to leave anyone out. You truly have no idea who may have an interest in real estate or know someone who does. Take your list and email every address available. The email should state that you have recently begun investing in real estate and may have access to deals in the area. If they want more information to give you an email or call back. It really doesn’t need to be much more elaborate than that. You will get your share of skeptical emails but the handful that do respond are the ones you should focus on.
- Professional Contacts. If you have been in the real estate business for any time you should reach out to your contacts. Every real estate agent, attorney, mortgage broker and fellow investor probably knows someone that buys real estate. Just as you did with your personal contacts start by sending them an email. With this list you should be prepared to answer more specific questions regarding locations and price points. There may be a question or two of how you find your deals or what you may be looking for. It is important to track every response that gets back to you.
- Bandit Signs. There are other ways to build your buyers list other than the people you know. Every bandit sign that says “we buy houses” is a potential opportunity. Take the time to call each bandit sign you see. There will be a few calls that will be annoyed that you called but for the most part the response will be positive. You aren’t selling anything. All you are doing is giving them an opportunity to potentially get a great deal on a property. If they want to take it fine, if not there are other buyers out there.
- Real Estate Websites. Between Craigslist, Trulia and Postlets you can find a handful of potential buyers. On Craigslist alone you should be able to add to your buyers list. Every post from a seller could be from a potential buyer. Take a few minutes every day and reach out to these posts. The same is the case with rental listings. You never know which rental property owner is also an active buyer. The only way is to find out. The worst thing that they can say is no.
Developing:
- Track Responses. Getting responses from your calls or emails is great but you need to do something with these leads. The best way to quickly sell a wholesale deal is by having motivated buyers. The only way to gauge motivation is by tracking your results. Everyone that responds should be sent a small questionaire asking questions about price points, locations and types of properties they are looking for. You don’t have to make this too long but you do want to get an idea of what they may be looking for. The more you know about your buyers tastes the easier it is to find deals they may be looking for.
- Keep In Touch. Your communication shouldn’t stop after your initial email. Once you build your list you should keep in touch every few weeks. A monthly newsletter is a nice way to keep your name on the mind of potential buyers. Anyone that doesn’t want to remain on should have the option of opting out. Even if there is no response at all you should continue sending these out. The odds are that most recipients are reading your emails but may not have an interest in buying at the current moment. The longer you keep with it the more interested they will be when they are ready.
- Set A Meeting. You can’t expect buyers to work with you unless they have a good idea of what they are getting into. A meeting will often put them at ease. You don’t need to have a fancy dinner to get your point across. Something as simple as a cup of coffee can be just as effective. What you eat is not as important as the information you provide. The more transparent you are the more comfortable they will be. If there are questions you should ask if they want to meet rather than answering them over the internet. A face to face meeting is a great way to make a prospective buyer feel comfortable.
A strong buyers list will make your job as a wholesaler as easy as possible. Developing this list is usually a cultivation of actions over time. By doing something every day to develop your list you will slowly see the results.
