Real Estate 101: How Important is a Good Buyers List
My first Real Estate dollar came from wholesaling a deal. I made $30,000 on one transaction while never owning the property. Ever since that first deal I’ve been hot on wholesaling.
Over the years I’ve noticed that I sell the vast majority of my wholesale deals to a small handful of investors. These people are professionals who have money and know what they want. When they see a property they like, they make an offer.
I’ve also noticed that the contracts I sell outside my investor inner circle are the deals that yield my highest profits. The result for me has been a nice medley of consistent and highly lucrative, but this did not happen by accident.
My Real Estate investment team and I have worked hard to constantly find new prospective buyers and build our list of active investors. That list has become a major key to my success.
Use You Buyers to Target Marketing Campaigns
There are few things worse that having a good deal, but no buyer to pony up and purchase it. This usually happens because the investment is not really a deal at all. But there are also times when a property is located in an area where you don’t know the buyers.
In one of my previous educational posts (Real Estate 101: Identifying Your Target Market) I discussed the importance of identifying a targeted geographic area in which to implement your marketing campaign. If you have consistent, repeat buyers, use their criteria to structure your marketing efforts.
It saves time racing to find a buyer and can be a quick education on what investors are really paying for houses.
In the beginning, I wanted a list of anyone even remotely interested in buying investment Real Estate. It didn’t take me long to find out that most people either don’t have the money or will not pull the trigger even when they find a deal. It took me several flaky investors to realize that cash in hand is preferable to the promise of a big payday.
When dealing with a new buyer, it’s important to keep in mind that not all investors are created equal. Those with cash are preferable, even when selling at a lower price. Buyers that come back to me over and over again move to the head of the line when I get a new property. I do not deal with people who twist the truth. Little fibs on the small things turn into bold face lies when there’s even a hint of trouble getting to closing.
Building a good Buyers List is no different than building any other part of your success team. Work with honest people that are work to get the job done.
Strong relationships build strong businesses – the cash flow and profits follow closely behind.