November 7, 2018
Whether you focus your business on wholesale dealing, or you turn distressed assets into rental properties, you need a list of potential buyers ready for when you need to sell quickly. Building a buyers list does not have to be time-consuming. Follow these tips to build your list quickly.
If you have been following our blog for a while, you have probably noticed we talk about networking often. Why? Because people helping people is how things get done. Whether you need to find a new property to buy, or the right contractor to help you flip it, networking can make it happen. The same goes for building a list of potential buyers. Start with the people you already know. Find out who may be in the market, and who may know others who are looking. Real estate agents are great resources since they work with buyers all the time. Networking clubs geared to the property investment world are also great. For more tips on how to network effectively, check out our article.
“We Buy Homes” Signs
We all see these signs on street corners, in vacant lots, and stapled to utility poles. Anyone who posts these signs is clearly in the market to buy. Contact these people to build some rapport even if you don’t yet have anything to sell. Then, when you are ready, you have more contacts who may be interested in buying your property. As you make your calls, keep track of which potential buyers are looking for single-family properties, and which ones are interested in multi-family units. If you can find out what price point each person is looking for, make note of that as well. The data you collect now will be invaluable when you have a property to sell.
In today’s marketing landscape, there’s no denying social media is at the center. It’s fast, easy, and relatively inexpensive to reach target audiences. When you are looking to build a buyers list, you have a couple of options.
First, you can use social media as an extension of your in-person networking efforts. Connect with your contacts, reach out to their contacts, and keep your name at the forefront of their minds. Note this is an extension of face-to-face contact, not a replacement. You still need to work on personal connections, but social media is a great tool to keep those connections working for you.
Targeted advertising through social media reaches people in your market that you may otherwise have never found. You can use this option when you sell a property, or you can collect contact information for people who may be interested in making a deal in the future. No matter what your goals are, targeted advertising can help you move your properties quickly.
Though social media gets most of the attention these days, Craigslist is still a great resource to find buyers. Look at listings of properties for sale—many of these will be people who have already flipped a property, and who will be ready for another deal once that property sells. By making contacts now, you will have several more people to add to your buyers list when you are ready to sell wholesale properties that have not yet been rehabbed. Contact those sellers, explain what you do and what you may have for them down the road, and establish that preliminary communication that could lead to a future deal.
Cash Sale Lists
What better way to find potential buyers than to look at who has been buying properties with cash? Your real estate agent can access this information in the MLS. Once you know which properties were purchased with cash, you can obtain contact information via publicly-available records at town hall or online. Most investors are happy to find new sources of properties, and you get to add to your buyers list.
Your buyers list may not get built in a day, but with these tips, you should be able to add to that list with minimal effort. Doing the work now will ensure you have multiple options at your disposal when you are ready to sell properties. Faster sales mean faster closings. Faster closings mean you can move on to the next deal more quickly.