If you are interested in pursuing a wholesaling career, the two most important things to know are where to find deals and how to get rid of them. Assuming that you have a steady pipeline of deals coming in, your focus will be on finding buyers. If you cannot quickly sell deals after you get them under contract, you will be forced to keep them for yourself or find an alternative exit strategy. Neither of these options is very appealing, or good for your long-term business. Therefore, you need to build a wholesale buyers list in order to move product faster and more efficiently. Having a cash buyers list at your disposal will enable you to facilitate wholesales in a profitable manner.
A wholesale buyers list is essentially a catalog of subsequent investors who may be interested in obtaining a wholesale deal of their own. In other words, it’s a list of potential buyers a wholesale investor may contact in the event they come across a viable deal they may want to sell to someone else. More specifically, however, a wholesale buyers list is an invaluable tool for wholesalers intent on maintaining an efficient business model; one that allows them to act as the middleman or woman and facilitate a deal between a seller and an end buyer.
Investors need a wholesale buyers list to make the process of wholesaling more timely, efficient, and profitable. That said, a wholesale buyers list isn’t necessary; it’s merely a tool to make one better at their job. All things considered, investors are only hurting themselves by not using a carefully curated list of potential buyers.
With a wholesale buyers list in hand, investors could potential have a buyer lined up before they even initiate a deal. As a result, the benefits are at least three fold: Wholesalers will know which types of properties to prioritize before they even begin their search, they will have a buyer lined up before a deal is struck, and they’ll be able to move on to another deal sooner. All three culminate in a more efficient and profitable system.
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A wholesale buyers list, otherwise known as a cash buyers list, is something no investor should be without. It is an invaluable mechanism for connecting sellers with buyers in the most efficient way possible. Fortunately, the Internet has made finding real estate and generating new contacts easier than ever for investors building their own lists. Here are some of the most relevant strategies for investors who want to build a wholesale buyers list:
The first thing you should do is contact anyone that has a for rent or lease option property. You should dedicate one day every week to searching these sites and sending emails to those who warrant it. While the process may be tedious, you just need one or two promising responses for it to be all worth it.
You have probably driven by cash buyers without even knowing it. Every bandit sign you see that says “we buy houses cash” is a potential opportunity to add to your list. A quick phone call stating what you do and if they would like to be notified of any new properties is all it should take. Any good investor will welcome a phone call with the opportunity to get a new deal. These signs are more abundant than you may realize. A phone call is more personal than an email and much more likely to get the response you are looking for.
You also probably know more cash buyers than you may realize. Use your personal contacts to see who you know that may be interested in real estate. A quick post on your social media sites or a letter to friends and family can get the ball rolling. You can also ask your realtor, attorney, accountant, financial planner or mortgage broker if they know anyone that invests in real estate. You don’t know what you can get if you don’t ask. Every networking meeting or local REIA event should be an opportunity to get a few new business cards or reach out to a few more cash buyers. If you wait for these people to just fall on your lap you will be waiting a very long time.
You can also look in your local newspaper and see if anyone is buying houses cash. Additionally you can reach out to all of the hard money lenders in your network and find out who is buying houses. All it takes is one investor to create a relationship with that can change your business. Even if you do have one buyer that is your go to buyer there will still be properties that they do not like and you need backups on. Instead of scrambling around looking for someone after you have a deal in place you should have people you can call at any time.
It is also important to join any website, investing club and real estate group you can find. There is a lot more out there if you are willing to put the work in to finding it. Even a quick internet search for cash buyers in your local area will produce at least a handful of names. What you do with any new contacts will make or break your list. You need to reach out to all new contacts as soon as possible. It is also important to stay in touch with them even if you don’t have an existing deal. You should email or ask each buyer what their preferences are in terms of price, location, condition and style. You never know when a deal can be a perfect fit for someone you have never worked with before. If you can keep a spreadsheet with all of this information you can act quickly when a new deal comes your way.
Finding cash buyers is much more about the willingness to put the time and work in than anything else. Buyers are out there if you know where to look and how to approach them. For a wholesale investor, the speed at which you can turn deals over is the most important part of your business. Getting new deals is great, but if you can’t get rid of them they won’t do you much good. A good buyers list will help you get your properties sold and close more deals. If that sounds like something you would like to realize, try some of the other strategies investors use for building a wholesale real estate buyers list:
Local real estate investing associations are a great place to meet people looking to buy real estate.
A cash buyers list may be easier to build through online social networks like Facebook or Meetup.com.
Contact the closing attorneys and title agents in your area. There’s a good chance they work closely with a lot of investors. They may be able to point you towards a few interested contacts.
Hard money and private money lenders tend to fund a lot of local investors. Get in touch with these alternative investors to learn who may be buying deals in your area.
Contact property management companies; they have a direct working relationship with landlords who may be interested in parting ways with their homes.
Visit local property auctions, but not to bid. The interested buyers may be interested if you can bring them a home in the future.
Finding new contacts may not be the difficult part; getting them to work with you is. If you have an established track record and portfolio, you should be able to build a wholesale buyers list in now time. Prospective buyers like to see that you are serious about the business and not just a fly by night wholesaler. You should have a website with any current and past deals that you can present to any interested buyers. The more credible you are the more buyers you will attract.