For any Wholesale Investor, their buyer’s list is the lifeblood of the business. Without a sizable list, you could be headed for trouble. Wholesale Investors do not have the luxury of placing their properties in front on thousands of people through the MLS system like a Realtor would do for a typical house seller, because of this one must always, and I do mean always work on their buyer’s list.
Here are a few things that will help you while working on your buyer’s list.
* Auctions: attend all the auctions you can even if you are not buying. This allows you to see who the active buyers are, and to put a face with a name. Make sure you have your business cards with you that contain your contact information, pass them out and explain what it is that you do.
* Mortgage Brokers: you are scratching your head on this one. Meet with a few in your area, take them to lunch and explain to them what it is you are doing and that you may need their services. During conversation ask them if they work with any investors; if so see if they would provide names and numbers for those individuals.
* Title Company: at the Title Company you decide to conduct your transactions, ask if they are aware of any investors they may refer you to.
* Bandit Signs: I know you usually hear this one a lot, but I have a different spin on this well-known method call each sign you see that says WE BUY HOUSES and ask them if you can add them to your list.
* For Rent: all the rent signs in your target area belong to someone who buys and rents houses (landlords). call them and add those people to your list.
* R.E.I.A Groups: your local Real Estate Investors Association or any local Real Estate group can provide a great place to build your buyers list. these are active people and many of them may be too busy to find and hunt for deals.. thats where you come in.
There are a few methods I personally feel are a waste of time and money. There are more efficient ways of working on your buyers list. These methods may work for you or maybe you just have money to waste.
* NewsPaper Ads: Im not a fan of running ads in the local newspaper, even though I know people who have success with this I choose not to do it because I find and feel that the return is not equal to the cost.
* Fliers: fliers are good but not in unproductive places like laundromats. if they can not afford a washer & dryer do you think they are investing in properties?
* Direct Mail: I know Ill get a lot of disagreement with this one but think about it; most people starting out building a buyers list do not realize how dialed in you need to be when doing mailings. most newbies would just do a blanket mailing to an area or neighborhood where they felt the residents had money and may possibly invest in real estate. For this very reason I say stay away for now, but once you learn the type of people to mail to and how to get the proper list, then knock yourself out.
It is my hope that this helps you in working on your buyer’s list. Remember, if you never do it, you will never know if it works.