I recently spoke to a few people who wanted to get involved in wholesaling properties. Wholesaling properties is a great niche to be in because if you can find the right leads you will have no problems selling your properties and selling them fast. But before you can sell them fast you need to have a buyers list. A buyers list is one of the most important parts of a wholesalers business. When you are wholesaling properties you want to be able to flip them as fast as possible, and with a strong buyers list organized the right way this process becomes a whole lot easier.
What are some sources for buyers?
Your local real estate investment club is a great resource for buyers. If you are an investor it is absolutely critical that you know the investors in your area and have contact with them. When you meet them find out what part of investing they focus on and take note. Certain investors at your local clubs may not be interested in buying properties from other investors because it is not their particular concentration. But those that are looking for those types of deals are great. You know they are investors so your real estate investment clubs should be your first source for creating your buyers list.
Another source for potential buyers is from signs and classifieds. When you see any advertisement that says “We Buy Houses” or any other advertisement that is clearly from an investor, write down the number. When you get home call the number and just start talking to the investor. Find out what sort of properties they are interested in. Take notes on each conversation that you have and keep meticulous records
One of the best sources for a buyers list is your local section 8 office. Call your local office or visit them and get a list of the local landlords in your area. This will give you a large list of people who are active in real estate investing and are potential buyers. Again, once you have the list contact each investor and talk to them and try and get a feel for what types of properties they are looking for. On a side note, you may also be able to find a burnt out landlord that would be willing to sell you their rental property or properties at a discount. So not only can this step help create a buyers list but you may also generate a few good leads from this easy step.
Remember when you are collecting all these names to take lots of notes. Get each persons contact information and as much other information as you can. One critical piece of info is the email address. When you have a property and you have 100 emails of potential buyers, all you have to do is send out one email and you have reached 100 potential buyers in literally seconds. Regardless of the strategy I am going over next, this is a very powerful way to flip your properties very quickly.
So now you have a buyers list, what next?
The next step that I recommend is to sort your buyers list. The reason you do this is to take away a lot of the hassles you might face. If you have your list separated into an A, B, C, and D list; you will find wholesaling a lot easier. You’re A list may be those that can bring cash to the table within a week. Your B list may be those that have pre-qualified for a specific loan amount. Your C list may be those who have not pre-qualified but you believe could be able to get the financing in a month’s time. Then your D list may be those who you have no reason to contact because you don’t believe they will be able to get the money from anywhere.
However you divide your list up, this process will help out because you simply progress down your list. Start with your A list then your B list and so on down the line until you have a buyer and the property is sold.
I have also found it helpful to have a website where you can put pictures and descriptions of your properties. This however is not necessary however due to a new program a good friend of mine has created where you can list you properties and anyone can view them.