If your going to start wholesaling properties your going to have to build a Cash Buyer's list fast. This will help keep your cash flow steady each and every month. To sustain this, yo u need to build a huge list of buyers for your wholesale deals. Here are 5 how to strategies to help you
ensure you always have investors lined up drooling at the mouth and chomping at the bit for your wholesale deals.
Check out your local online classifieds
Just recently myself and my clients have built buyer’s list in Philadelphia, PA and Roanoke, VA in just a few hours buy utilizing the online classifieds. I think this is one of the best ways to build your buyer’s list fast. I want you to go to www.craigslist.org and www.backpage.com and start out with the properties for rent, these properties are going to be listed usually by the owners of the property or the property managers. If you reach a property owner all you have to do is let them know you will be liquidating some houses in the same neighborhood of their property they have for rent and you just wanted to know if they would be interested purchasing discounted properties in the area to add to their current rental portfolio. Calling and building a relationship with the property managers on these sites can be beneficial as well. Property managers are always looking for new properties to manage and will be more than willing to refer or pass your wholesale deals on to their clients in hopes of gaining future business. This is just the beginning these online classifieds not only give you access to landlords and property managers but other real estate professionals. You can find hard money lenders, mortgage brokers, appraisers, other wholesalers, junk removal companies, title companies, maid services, and a host of other real estate professionals you can start to build relationships with and eventually grow your buyer’s list.
Build relationships with Real Estate Agents
Building relationships with real estate agents in your marketplace is very important for a number of reasons when just starting out as a wholesale investor. Having access to an active real estate agent that has a good sense for your marketplace from how much properties are renting for in certain neighborhoods, the values of the properties and what investors are willing to pay for these properties, and access to a large network of real estate professionals from handy-men, electricians, plumbers, heating and air technicians, accountants, contractors, title companies, roofers, appraisers, other real estate agents, and most importantly real estate investors are all key to your wholesaling business. Not to mention they have access to the multiple listing service that is constantly updated on a daily basis with bank owned, short sale, short sale approved, estate sales, expired listings and REO properties. If you don’t know of any active agents you can easily find them on your social online networks like Facebook, Myspace, Linkedin, and Twitter. You can also visit your local real estate investor’s association visit www.NationalREIA.com to find a REIA in your marketplace where real estate agents go to network with real estate investors and market their current listings. You can also simply google your city/county and the word real estate agents. In today's market most agents are working with rehabber's and landlords these are the real estate investors that may be interested in some of your wholesale deals that you are going to need to know. So how do you form a relationship with a good agent? Easy. See people like to know whats in it for them especially real estate agents they only make money if a property sells. So when you contact these agents you need to be totally 100 percent transparent with them, let them know you are a wholesaler that is just starting out and you are interested in sending them over deals for their rehabber's and landlords. Let them know you are willing to pay them a portion of the assignment fee depending on the spread more than the 3 percent that's pretty much standard. It’s pretty standard that most agents are paid 3 percent after the sale of a property, but a lot of times this may not be much. When you let an agent know you are willing to give them a portion of your assignment fees they will start bringing you buyer’s left and right. Forming a relationship with a real estate agent can and will lead you into a network of other real estate professionals that can help you grow your wholesaling business as well as supply you with a pipe line of buyers to purchase your wholesale deals.
Cash Buyer Signs
I believe and know first hand that this is one of the most effective ways to build a massive buyers list from scratch. I recently traveled to Philadelphia, PA and Roanoke, VA with a coaching client to put two properties under contract and wholesale. In just a couple of days we grew a buyers list of over 50 cash buyers using bandit signs in the vicinity of the property. Just by using a blank 24x18 or 18x24 size sign and a king size black or blue marker with a message like “Motivated Seller Cash Buyer’s Only House 4 Sale only 20k Call Today XXX-XXX-XXXX” and placing them at busy intersections in the ground using h-stakes or hanging them up on poles with a bandit sign hanger, had our phones ringing off the hook we captured potential buyer’s names, phone numbers, and email addresses so we could send them over all the details with pictures of the property and a deal analysis. You will find even after your property is no longer available using this tactic investors will call your signs with interest in the property that was for sale. Simply let them know the property has sold or is currently under contract, but don’t let them off the hook before asking them if they would be interested in similar deals like the one you had for sale, ask for their emails and direct phone numbers so you can keep them updated with more deals as they become available.
Before you even think of marketing your wholesale properties you must have it drilled in your skull that you will capture everybody’s information. It’s a must that you collect all of your potential buyer’s names and emails if you want to survive. We live in an age where we can send out thousands of emails to buyers and close your deals in literally a few weeks. I’ve actually found many buyers the NEXT DAY just from sending out emails on my email list. The first step is to know that you’re here for the long haul. That’s what will separate you from other wholesaler’s in your market place. I started out with a Yahoo account and I was actually doing it the hard way. I suggest later on (or now if you can afford it) that you sign up with www.constantcontact.com. This site will help you set up a flawless marketing campaign to shot emails to your buyers. It ranges from 50.00 to $100.00 a month.
Networking is another key to building a massive buyer’s list. You should join your local REIA’s (Real Estate Investors Association) an talk with new and seasoned investor’s to find out what type of properties they are looking for multi-units, single family detached, commercial, land, mobile homes, and the locations that they like to buy in. There are many buyers who rehab houses all the time and are actively looking for deals. When you start attending these meetings it’s always great to have a business card or flyer with you to hand out. One of the most important things to do once you meet some of these investors at your local REIA is to follow up with a phone call or email letting them know it was nice meeting with them and you plan on doing business with them in the future. Take their business cards and save their email and contact information in a spread sheet or online contact manager. Many people feel uncomfortable when it comes to networking if you’ve never done anything like this before your going to have to get comfortable being uncomfortable. It’s totally understandable if you feel that way all of us feel this way at first. It’s just how humans react to doing new uncomfortable things. If it makes you feel better realize that…You’re not alone, the REI community is the biggest network friendly group of people I’ve met, and feeling uncomfortable for 3 seconds is worth hundreds of thousands of dollars.
Happy Wholesaling : )