Close

9 Tips for Building a Profitable "Buyers List"

by William Bronchick, J.D.   

When you start out wholesaling houses, one of the first things you want to do is build a list of potential buyers. Don't make the mistake many beginners make by waiting until you have a house under contract. If you do, you put yourself under pressure. Scrambling to find a buyer could put your other profitable activities on hold.

Numerous groups of people will want to buy houses from you: real estate newbies, rehabbers, contractors, retailers, investors interested in doing lease options, etc. Make a connection with someone in any one of these groups, and they could become regulars.

A few ideas about how to reach potential buyers

 

  1. Get hold of a list of "section 8" investors at your local property management company. Property management companies can also put you in touch with other investors who might be interested.

  2. Put a classified ad on Craigslist: "Investors wanted. Local property owner selling houses at huge discount." Or some such wording.

  3. Join your local  real estate club and network with the investors there.

  4. Call the "for sale" classified ads in your local newspaper. Especially the ones that say "newly renovated." That indicates a rehabber or contractor who might be interested in future deals.

  5. In the classifieds, look for the words "rehab special" to find investors.

  6. Other words to look for in the classifieds: "Thousands below market" or "I buy houses." In short, any indicators that you might be dealing with an investor who can potentially be responsible for stuffing your pockets with cash.

  7. You are walking or driving down the street and see a house being remodeled. Stop to chat with the contractor or rehabber. Or get the contact information of the owner, if the workers are only hirees.

  8. Contact "hard money" (higher interest rates) lenders for investor names.

  9. Of course, you can always place your own classified ad. Something like "House for sale. Thousands below retail" or "investor special" to get your phone ringing.

VERY IMPORTANT: Be sure to get the contact info, including the email address, of everyone. You want the email address so you can do an e-blast without having to write individual notices to prospects. By the way, in your e-blast, create a frenzy with some message of urgency about your offer. Some sort of first come, first served message.

[Tip: Go to www.vistaprint.com and get business cards you can hand out to potential buyers.]

But I don't even have a house yet

Suppose you don't have a house for sale? No problem. Always be running "blind ads" in order to strengthen your buyers list. Something to say when a caller responds: "That house has been spoken for, but I will call you when the next one comes up for sale."

Put an asterisk beside the names of potential buyers who

  1. Can close fast,

  2. Are cash buyers, and

  3. Are experienced

You don't want to waste a lot of your time hand-holding a newbie who can exhaust you and possibly make you think that wholesaling is not profitable. It is.

Interestingly, you don't need dozens of buyers to be successful. You are more interested in the QUALITY of your buyers, especially ones who are experienced, cash buyers, who can close fast.

About the Author:

william bronchickWilliam Bronchick, J.D. is an author and attorney who regularly presents workshops and do-it-yourself seminars at real estate and landlord associations around the country. He is the president and co-founder of the Colorado Association of Real Estate Investors.

Bill specializes in all forms of asset protection and is the author of several great home study courses:

 
Loading subscribe form...