Birmingham Michigan April 26 2012
I get asked weekly on how to build a solid cash buyer list of investors who actually move when they know of a good deal, these simple strategies have worked over and over again in my own real estate business. New investors are always torn between the old adage of “do I find a deal first or a buyer?”. After doing over 246 real estate transactions and 70% of them being wholesale I can tell you it is much easier to service a buyer who wants 100 houses than to sell 100 houses to 100 separate people. Let me share with you a few of the simplest ideas gurus charge thousands of dollars for in seminars, webinars, home study courses and live training events. These are actually quite simple and common sense if you let go of the intimidation of doing your first deal.
Go to where the marketplace is: I often hear investors doing mega direct mail marketing campaigns with blind lists that they bought from a third party service provider where the data is months if not years old. I sold my first 10 houses doing exactly what I am about to explain. When I got my very first deal under contract, I went to the local REIA and found the president and asked him who is doing the most deals and who would be willing to take 50% of my profit to bring me a buyer that closes? Within 2 days I had a signed contract for a $7,600 profit that I was still making over $3500 on. I didn’t care. I KNEW THAT WHOLESALING WAS POSSIBLE. I had my profit check in hand in the next 5 days and cut 50% of my profit as a finders fee.
Another way to find buyers is to drive the neighborhood for dollars and look for For Rent Signs and dumpsters. These For Rent signs and dumpsters are landlords and rehabbers who are always looking for more deals. When you approach a buyer with a contract on a home you can sell to them for $40,000 and they just paid $48,000, you just provided immense value. Rehabbers are always looking for equity in their properties and landlords want clean, typical rental properties in well located areas that provide great cashflow.
Call other local wholesalers off their bandit signs. You know, the bright yellow signs at nearly every corner of every town across America. These signs are placed out by other sellers or whole-sellers of properties. They often have a buyers list of ready, willing and able buyers that can stroke a check and move very quickly. This is whats known as affiliate wholesaling. Its risk free for the affiliate and a great way to break into real estate.
DOMINATE in Marketing. If you are a dominant force in the marketing field, you are a dominant force in controlling the market. If everywhere people turn they know you have properties with built in equity, they will beat a path to your door. Make sure you can deliver and have control over the property you are marketing. Remember that people do business with people they know like and trust. Build a real buyers list by knowing the pulse of your real estate market.
Getting QUALIFIED buyers! I talk with so many investors and wholesalers who brag about having 5,000 people on their buyers list, yet they are always the ones putting bandit signs out and marketing for new buyers. They look at me odd faced when I tell them I have 5-12 solid buyers who act fast, pay cash and don’t give me a hassle. Thats all you need is a few good guys who love to do business and go back to the marketplace to keep feeding them and feeding them and feeding them. These are your golden goose eggs. Cater to them and they will be clients and friends for life.
Be exclusive! Don’t let just anyone walk in and have the ability to do business with you. Think about your own instance here. When some one has something you REALLY want and they hold you back from getting it, don’t you want it even more? Always let people know you will consider adding them to your buyers list but your VIP buyers always get first choice until they prove their worth. This IS real estate. We are not selling widgets. You need to be 1000% confident in your product and know that if a landlord is beating you up on $2500 on price, you need to let him know he is making $400 in pure monthly cashflow for the next 25 years. Tell him you will sell him this one at the discount, but it will be the last one you ever sell to him cause your other buyers don't give you the hassle.
Take this information and go out and build you a buyers list. Do this in your spare time. Keep a private rolodex of verifiable buyers. Keep in touch with them. Give them free tenants or mortgage buyers. Let them know when you have a deal and how to do business with you. Its so important that people know how you operate. There are many ways to assign a property. Connect with me on facebook at www.facebook.com/theerikstark for more information. For a complimentary report on 7 Ways to Find Current Buyers in your market visit www.drunkletter.com. I will even give you 25 of my highest response bandit signs.
Erik Stark is a full time real estate investor since 2006 and has successfully transacted over 246 properties in his short career. Erik has been recognized and his business model has been showcased by mega entrepreneurs such as A&E Televisions Flip This House founders Than Merrill and the Fortune Builders team on more than one occasion. Erik remains true to his craft as a real estate investor first and coach/mentor in his spare time. Erik focuses on providing a simple life through real estate wholesaling and has begun building his long term wealth portfolio with long time high school friend Steve Mills. To learn more about Erik and how you too can flip houses without a suit and tie, connect with him on facebook at www.facebook.com/theerikstark
Birmingham Michigan April 26 2012