| Buyers lists are a wholesaler's ultimate weapon. While | | | | to have some cash on hand for their next |
| many argue that the property itself is the most | | | | investment. |
| important part of wholesaling, it is the buyers list that | | | | Personal Website |
| helps you move properties at a lighting fast pace, | | | | Another method is a personal website for you, the |
| and it is the buyers list that allows you to leverage | | | | wholesaler. There are a number of ways to go about |
| deals and earn the most money for yourself. | | | | doing this effectively, but one of the best ways is to |
| Buyers lists help you convince sellers that you can | | | | create a website that talks about yourself and your |
| move their property in a short amount of time, and | | | | successes, and shows off some of the properties |
| they provide you with the information you need to | | | | you have unloaded, prices, etc. You may even want |
| differentiate between a good and a bad deal. | | | | to showcase currently available properties as well. |
| The buyers list is the most important aspect of | | | | Are you likely to find buyers for those current |
| wholesaling real estate. However, because of this, an | | | | properties? Not at all, but you can have a form that |
| incomplete or inadequate buyers list virtually | | | | investors that happen upon your website can fill out |
| guarantees failure in the wholesaling industry, and an | | | | to be notified of potential properties in their area. |
| extensive and comprehensive buyers list is almost a | | | | You may even find some sellers as well. |
| complete guarantee of success. | | | | Direct Mail |
| What Are Buyers Lists? | | | | Various direct mailing methods are also very useful |
| Buyers lists are long, well researched lists of property | | | | for finding buyers. Sending direct mail letters is a small |
| investors and any applicable information about both | | | | investment, but the potential to find people |
| their wants and their buying habits. Buyers lists are | | | | interested in properties is very high, and the likelihood |
| not something that you find online - they are created | | | | that they have been found by other wholesalers |
| by you, the wholesaler, using various techniques that | | | | much lower. |
| help you locate who might be a potentially interested | | | | Once you have found these hidden buyers you will |
| investor in properties you expect to offer. | | | | need to woo them just like you need to woo the |
| These buyers lists are usually very large - as large as | | | | more public buyers by calling them on the phone and |
| you can possibly make them, in fact. Having hundreds | | | | convincing them that you will be the best contact for |
| and hundreds of potential buyers at your disposal | | | | them in the future. |
| means that you have multiple individuals to contact in | | | | A Comprehensive List |
| almost every location and who will be interested in | | | | Now that you have started compiling the list, you |
| almost every type of rehab project. | | | | should also be adding as much information as you can |
| The primary reason that your buyers list is so large, | | | | about your buyers. You will learn more questions to |
| however, is because you want to be able to deal | | | | ask as you start to gain more wholesaling experience |
| properties from any location across the country - but | | | | (everyone has their own questions that are helpful to |
| most investors are interested in locations they can | | | | them) but you are not only looking for contact |
| visit easily, because they are very likely to remodel | | | | information. You are looking for information on the |
| the home in order to resell it at a higher value. | | | | houses they buy, their financing, their history in the |
| Therefore, your goal when creating the buyers list is | | | | business - anything that you can use to help yourself |
| to find multiple buyers in a large number of locations. | | | | complete future transactions. |
| Creating the List | | | | Some of the questions to ask include: |
| - Starting the Buyer Search | | | | - What states are they currently making purchases? |
| While it may feel as though the best way to go | | | | - What cities and what neighborhoods are they |
| about building a buyers list is to search for buyers | | | | interested in? |
| once you find a great property deal, that is actually | | | | - Are they interested in investing in rehab projects? |
| the wrong way to go about creating the list. Instead, | | | | - What level of rehab project to they prefer? |
| you want to be building your buyers list from the | | | | - What level of rehab project is acceptable? |
| moment you begin wholesaling - long before you | | | | - How much are they willing to invest in repairs? |
| have even found your first property. | | | | - How much of an investment are they willing to |
| That is not to say that you should ignore a good deal | | | | make? |
| just because you have no buyers in the area. Rather, | | | | - How much of an investment do they usually make? |
| finding buyers can be a long and laborious process - | | | | - What types of financing do they have available? |
| and you only have a very short term contract on the | | | | The questions you can ask are virtually limitless, |
| property with which to deal it. Even if you find the | | | | though it is best to have all of these questions |
| best property in history, there is no guarantee that | | | | planned out ahead of time so that you can ask them |
| you will be able to find a buyer in time if you do not | | | | in the beginning rather than call and hassle the buyers |
| already have contacts, and the seller is likely going to | | | | later. |
| grow impatient and go back on the deal. | | | | More About Your Buyers Database |
| Instead, start finding buyers the moment you decide | | | | We have discussed why your buyers list is such an |
| to become a wholesaler and do not stop even after | | | | important piece of your wholesaling success, but it is |
| you have dealt a few properties. As mentioned | | | | important to also remember that your buyers |
| earlier, your buyers list is the ultimate weapon - not | | | | database is also an important learning tool for you. A |
| only will it help you sell these properties, but it will | | | | good wholesaler can get by with a comprehensive |
| also help you convince sellers that you are the go to | | | | buyers list, but a great wholesaler can use their |
| guy (or girl) for completing the sale. | | | | buyers list as a way to learn more about themselves, |
| - Ways to Find Buyers | | | | their buyers, and their properties. |
| Finding buyers is about two things: | | | | Think of your buyers database like a psychological |
| 1) Looking for Cues | | | | experiment - all of the data points represent pieces |
| 2) Being Social | | | | of information that are either similar or dissimilar from |
| There are only two types of places to find buyers: | | | | other data points. When you start to group this data |
| Public arenas (like clubs and property groups) and | | | | together, you can learn about your buyers and what |
| hidden locations (such as newspaper advertisements, | | | | to expect when you contact them. |
| which we will discuss later). | | | | For example, assume you have several buyers that |
| At public arenas (and, in a sense, with hidden | | | | you found via the classified ads tip mentioned above. |
| locations), you are going to need to use your social | | | | You mark that you found them via classified ads in |
| skills and influence to impress buyers and convince | | | | the buyers list. Some of these buyers were very |
| them that you have enough knowledge of the | | | | reluctant to hear from you while others were more |
| industry and enough trustworthiness that you will be | | | | than welcoming to receive your call. You can also |
| able to provide them with good deals that they will | | | | mark that in a buyers database as well, noting their |
| be interested in. They are just as interested in great | | | | personalities so that you can be prepared to who |
| properties as you are in selling them, so there is a | | | | you are talking to when you call them up in the |
| good chance they will be happy to give you their | | | | future. |
| information because they, too, are looking for the | | | | As you continue to be a wholesaler, you may find a |
| next big score. | | | | common theme - those that were reluctant to hear |
| The most common public arena is real estate groups. | | | | from you are actually your best buyers, and those |
| It can be hard to get invited to these groups and | | | | that were happy to hear from you are the buyers |
| equally hard to find a way to contact the members | | | | that are trying to rip you off. |
| of these groups, but if you can find a membership list | | | | You may find a completely different experience |
| or introduce yourself to just one of the members in | | | | yourself, but the point is that that is useful |
| order to get invited to one of their events. You can | | | | information that you can use to learn from the data |
| likely find investors at other high income non-real | | | | points you have gathered - information that can help |
| estate meetings as well, but real estate groups are a | | | | you learn more about your buyers even before they |
| good place to start, especially if you are looking in a | | | | are placed on your list, and information that you can |
| new area. | | | | also refer to when you call your buyers. |
| But one thing to remember is that real estate groups | | | | Your buyers database is not just a list of prospective |
| are targeted by every prospective wholesaler. | | | | buyers - it is the central place for all the information |
| Investors only have so much money that they can | | | | you have on your buyers, including information on the |
| spend on new properties, and if every single | | | | buyers as people so that you can know exactly who |
| wholesaler is contacting them to try to unload their | | | | you are dealing with even when you have not |
| properties, these investors may either be tapped out | | | | spoken with the buyer in a long time. |
| in terms of both financing and patience from being | | | | Leverage |
| hassled by the inconsiderate wholesalers that may | | | | The final point about buyers lists is that they must |
| not be contacting them about properties of interest. | | | | be as comprehensive as possible. The more buyers |
| That's why you need to look for buyers outside of | | | | you have for a particular piece of property, the |
| real estate groups - people that may not be targeted | | | | easier it will be to ask for larger deposits, more |
| by as many wholesalers but may have equally as | | | | money for the property, and other items that you |
| much money to invest in new properties. | | | | cannot necessarily ask for when you only have a |
| - How to Find Hidden Buyers | | | | few buyers. Multiple buyers allow you to leverage |
| There are a lot of different ways to find | | | | them against the others in order to get more from |
| unadvertised buyers. Every wholesaler learns their | | | | the property - and the more you get from the |
| won tricks to catching some of the subtle ways that | | | | property, the more you will profit. |
| prospective investors accidentally advertise | | | | Summary of Buyers Lists |
| themselves, but here are a few methods you can | | | | An effective buyers list guarantees that you are |
| implement in order to catch people that might be | | | | going to be an effective wholesaler. The buyers list is |
| investors: | | | | your primary reference for:o Contacting buyers when |
| Classified Ads | | | | you have a property for sale in their area.o |
| Buyers do not go about advertising themselves in | | | | Convincing sellers that you have buyers that will be |
| public locations. What they do, however, is sell the | | | | interested in their property.o Finding multiple buyers |
| properties that they have purchased and fixed up for | | | | that you can use to leverage more generous income |
| resale. Look for key words like "owner financing | | | | from. |
| available" - a commonly used term by investors, and | | | | The buyers list is the single most important tool you |
| a very uncommon term to find offered by standard | | | | have for profiting as a wholesaler. Spending time |
| home sellers and businesses. Anyone offering owner | | | | ensuring that it is full of prospective investors in |
| financing or similarly uncommon information could be | | | | multiple areas across the country is your key to |
| someone that invest in property - and you now | | | | having a great deal of financial success. |
| know that once they make that sale, they are going | | | | |