How do I grow a buyers list starting off wholesaling?

Question

I am interested in REI & want to start off wholesaling to grow funds so I can invest in rental properties that cash flow but everything I read & watch says that finding properties first & trying to find buyers second isn’t a sustainable business model so how do I find cash buyers as a beginner?

Steve K. · Answer

I would say the opposite: find great deals first (emphasis on "great", which means knowing the market and rehab costs to nail down an accurate ARV). What are you going to sell to your buyers list if you don't have a product? Too many wannabe wholesalers out there building a buyers list with nothing to offer in my opinion.

If you get good at finding great truly off market properties, your buyers list should create itself. You don't even need a list you just need one buyer per property lol. I'm not a wholesaler but it seems to me like wholesaling is simply a marketing business. You've got to invest in advertising to generate consistent deal flow because without great deals what are you bringing to the table and why would anyone want to be on your buyers list?

Bob Woelfel · Answer

Hey @Jhamal Beverley...I would start off by finding a property first.  Right now you don't have a business...you have an idea that you hope to turn into a business.  You need to prove to yourself that the business model actually works and that you can make money doing it.  I get so annoyed when wholesalers advertise for you to get on their buyers list acting like they have all these properties and then when you do the only communication you get from them are articles and newsletters for months and no properties/deals.  Find a deal and you will easily find buyers, especially in this market.  Once you've been able to find deals over and over then your buyers list will grow and you can advertise for buyers to join because you actually have value you can bring to them in the form of deals.  You make money by doing deals not growing a buyers list for non existent deals.  My two cents.

Thomas Peddle · Answer

Jhamal, I'm NOT a wholesaler so take what I say with a pinch of salt.

I watched a YouTube video last night from a young wholesaler demonstrating cold-calling techniques for motivated sellers. He used Craigslist ads in the FSBO & FRBO (rent) sections for prospects.

A major takeaway from him was that he will call ads that are obviously from RE agents or fellow wholesalers for the networking opportunities and leads. The FRBO calls typically are landlords who may be interested in buying properties.

Essentially, cold-calling sellers can often help build out your buyers list.

Jhamal Beverley · Answer

@Thomas Peddle thank you!

Jhamal Beverley · Answer

@Bob Woelfel thank you!

How do I grow a buyers list starting off wholesaling?

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