Building an investor list is the key to success in real estate investing. The concept is simple: Find a list of investors who buy houses, then go out and find the inventory to flip to such investors. Let these investors know that you buy houses, too. The more people in your network, the easier it will be to buy and sell houses.
Building an investor list is easy, in fact, “ITS MAGIC.” Here’s how the acronym plays out:
I – Have an identity
Superman has an identity. Batman has an identity. Do you have an identity? When you go to meetings like your local real estate investors’ club, people need to remember you.
Wear the same pink tie, yellow shirt, or red hat so people always remember you. You want people to identify you with something they can remember, so they will always call you when they want to buy houses from you or when you call them to sell them houses.
T – Title records
Sophisticated investors who buy and sell a lot of houses will show up over and over again on the title records. Get access to local records through your friendly real estate broker or title company. Make note of the names that come up over and over again. Put these people on your list.
S – Street signs
You see them everywhere: “We Buy Houses” signs stapled to a telephone pole or stuck in the ground. Call them. If they really buy houses, you want these people on your investor list. And, if they come across deals that they don’t want, make sure they know to call you.
M – Marketing
Do some good marketing to generate a list. Start with a good business card and brochure and pass them out to everyone you know. Ask your title company rep if you can leave brochures in their office, so when other investors close deals, they can be introduced to you. Your goal should be to pass out 500 business cards a month or more.
A – Auctions
Auctions attract lots of investors. Go to local foreclosure auctions and pass out your card. Collect the cards of others you meet to generate your investor list.
G – Groups
Join every business group that has luncheons or meetings. Investors or potential investors come in every walk of life. And, people who are not investors will call you when they come across a house in foreclosure or a couple in divorce. Everyone within your influence should know what kind of business you are in, so they can refer business to you.
I – Internet
The Internet is loaded with real estate message boards and discussion groups where investors congregate. [Check out the CRE Online Main Real Estate Forum and other discussions.]
(Even if people you meet on these boards are located in other states, keep them on your list. You never know when you will come across someone who has moved to their city or when they will come across someone who is moving to yours.)
C – Real estate investment clubs
Real estate investment clubs are your best local source for building an investor list. Frequent meetings often, pass out your business cards, and flaunt your IDENTITY. Click here for a state-by-state listing of real estate investment clubs.
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