Building a Buyer's List - Notes from speech to WKREIA

BUILDING A BUYER’S LIST

To make money in real estate, we all need buyers for our houses.  We need wholesale buyers, rent to own or creative financing buyers.

In order to move the homes we buy at great deals quickly, we need people in place to immediately purchase these homes via cash or creative financing.  We need a quality list of potential buyers for each property we purchase.

Let’s talk about creating a list of wholesale buyers

Wholesale buyers are other investors whom you can quickly turn a property to in order to make a small profit.  For instance, I have a duplex in Paris, TN right now that needs some work.  I’m trying to sell it to any rehabbers out there for around $17,000.  That will let me make a small profit and let those who like to fix and rent keep the cash flow.  A good deal for everyone involved.

How to find wholesale buyers – A.  Look around – people in the REIA are good candidates to be wholesale buyers.  As long as you leave them enough room to make a profit, there is always room to work.

The number one best way to find QUALIFIED wholesale buyers who have cash and can close quickly:  AUCTIONS.  The auctioneer is paying for your marketing to bring qualified buyers together in one place.  Get out and hand out your business cards at the auctions around town and you will meet a lot of investors to add to your buyers’ list.

Marketing – online and offline.  Local newspapers, Craigslist – Run teaser ads like – Handyman special, $12,341.60 repair needed (always an odd number), worth 120k, will sell for 60k, serious buyers only, must close in 30 days.  Will get a ton of calls from people interested in the house.  Put them into your database and follow up as needed.

Rent to Own Buyers – These will be people with no credit or bad credit that have money (normally 5% of sales price) to put down for a rent to own.  A very successful thing that I have done is put the following in the paper: 

Why rent when you can OWN?

Many to choose from.

No bank qualifying.

Your job is your credit.

Call 761-HOME

You can run this ad on Craigslist as well and get people calling in.  On any of these types of lists you’ll want to get email addresses if possible as well as phone #s and amount of down payment (the more the better).

Also – network with your friends in the lending community.  Give out a stack of your cards to your associates in this community.  If people can’t get financed with a bank or a mortgage broker, have them contact you and you can owner-finance them until they can fix their credit.