Best way to quickly create a cash buyers list....
Member since 2019 · 6 posts · 1 vote
Hi. I could use your help. I'm new to wholesaling ( NH / North of Boston / ME / VT ) and I want to have a solid cash buyers list set up and vetted prior to approaching the market place and engaging clients. What is the best way to quickly build this list? I am set up with local REI groups and have some scheduled meetings to attend this month so I hope to get some insight there. How about buying them from the web from sites such as myhousedeals.com and cashbuyerslists.com? Are the lists offered on sites like this worth the price and effort?
Just looking to fill in this gap to get up and running. Any advice you all can provide is greatly appreciated.
Thank you all very much!!!
Kevin
@Kevin Keane IMO the best way to get real serious buyers is to have deals first. This tends to be the real estate equivalent of which came first the chicken or the egg. What do you get first, buyers or sellers? Personally, I have found that getting sellers is the difficult part. Getting buyers for good deals is easy. BP even has a market place for posting deals.
The mistake a lot of new wholesalers make is the spend weeks (or worse months) trying to put together this buyers list. They put all this effort into meeting buyers, qualifying them etc and then they start marketing for sellers (which can take weeks or even months) and by the time they get a deal all their buyers have forgotten who they are. In my area most serious buyers wont even want to be on your list if you dont have deals or dont have a track record to show them.
Dont be afraid that you will have a deal that you cant get sold. If its a good deal you will have no trouble.
But to answer your question, one of the best places to find buyers is your county foreclosure auctions. Everyone there is there to BUY and they have the CASH to do it.
There are many ways to approach this. Take a look at your county's sheriff sale list closings. There generally will be cash buyers names and addresses that you can easily add to your list, of course it will take time to build a relationship, but they may be interested in hearing your deals especially if they are familiar in the area you are looking to wholesale in. Also, you can go to listsource.com to do a reverse lookup on hot zip codes that have 100% equity in the last 12 months and you will see cash buyers there as well. Talk to everyone you can about what you are looking to do, be authentic and genuine to people you come in contact with and you will begin to develop a solid list.
Hope this helps, good luck!
Hey, so there is quickly grow a buyers list, or get quality buyers.
HUGE difference there.
So here is how I do my list. When people want to be on my list I interview them. I do not beg them to be on my list. I have THEM beg me to be on my awesome list damn it.
How do you do that. What happens if you dangle piece of bacon up high in front of 3 or 4 hungry dogs. They go crazy .. no?
Exactly. You have to let them know you are of value to them wild smelly cash buyers.
Once they know you are the sheeznitz they will go out of their way to be on that list.
I make them prove to me WHY I should accept them. If they are too lazy to do that effort, they simply are not serious cash buyers, or they are flat out STOOP-PIT. Either way no need to mingle with those kind.
The question now is...
"OK buy you smelly ape, how do I get buyers to fight over my list?"
Good question.
The answer is... and this is the moooost amazing method to effortlessly get aid buyers... are you ready? READY? huh? huh? OK sit down, prepare... here it goes.
Almost there
OK now.
Almost
OK OK really almost now.
OK here it is
Almost here
OK now for real:
The answer is..
"I am Groot"
You re welcome Bubbles!
OK ok ok fine I shall translate.
How do you get these buyers interested?
Show them you got the leads. Show them you are able to perform.
Show them you can get off market deeply discounted deals. Not by making empty promises.
How ever yo convince them you are the list to be on, is your choice.
I just dangle the bacon.
Like so
I show them my leads coming in. You don't HAVE to show them the leads, but I simply do not see a better way to convince people you HAVE leads other than showing you have them.
Of course I know not everyone is sexy beautiful, gorgeous and an SEO yoda, ... like moi... so not everyone will be able to show off like this..
BUT, the principle remains. CONVINCE the buyers you are on top of it. Either talk a good talk or show them the money.
Remember.. the key here is.. you do not need or want 300000 buyers.
How many deals are you going to sign a month? 3? 4?
Then how many months does it take to flip house? 3? 4?
OK so every 3 , 4 months you need to sell 3, 4 contracts
So every month you need 4 buyers that are ready to buy. Once a buyer has bought a contract chances are it will take 4 months before that particular buyer can buy again (only after the flip is done he can buy again)
But for the next month you again need 3, 4 buyers..
so do the math.. no need to be accurate here... rough numbers are fine as we did a lot of assuming.
so you need 4x4 buyers.. 16 buyers to keep on flipping 4 contracts a month.
After the first 4 month period, you will be able to recycle these 16 buyers again.. The 4 buyers that bought the contract from you that first month, will become available to buy again the 5th month.
So 16 buyers you need if you sign 4 contracts a month.
Now to be on the safe side.. double that number.
So you need 32 buyers (serious buyers) in order to do 4 wholesale deals a month.
As you can see... you do not need many buyers at all.. you just need awesome buyers.
You get awesome buyers if you are an awesome wholesaler.
OK OK OK, let me make this answer a bit more practical to you.
Go to your friendly Real Estate Agent and ask HER (because all REA's are female), to tell you which houses have been purchased in cash in whatever cities you invest in. Those are "serious" cash buyers that have demonstrated the ability to buy in cash.
GAAADAMN am I good OR WHAT!!!
@Kevin Keane IMO the best way to get real serious buyers is to have deals first. This tends to be the real estate equivalent of which came first the chicken or the egg. What do you get first, buyers or sellers? Personally, I have found that getting sellers is the difficult part. Getting buyers for good deals is easy. BP even has a market place for posting deals.
The mistake a lot of new wholesalers make is the spend weeks (or worse months) trying to put together this buyers list. They put all this effort into meeting buyers, qualifying them etc and then they start marketing for sellers (which can take weeks or even months) and by the time they get a deal all their buyers have forgotten who they are. In my area most serious buyers wont even want to be on your list if you dont have deals or dont have a track record to show them.
Dont be afraid that you will have a deal that you cant get sold. If its a good deal you will have no trouble.
But to answer your question, one of the best places to find buyers is your county foreclosure auctions. Everyone there is there to BUY and they have the CASH to do it.
@JerryllNoorden
@LydiaT
Thanks so much for this great advise and info. Makes total sense. I greatly appreciate it.
@JosephFields . Thank you for the advice, Joseph. I'll focus on these areas as I build.
Hi Kevin, have you considered running some Facebook ads to build your list?
(I know a fair amount about this so feel free to ask me any questions)
@Deep Johal - Thanks for the advice. I have been thinking about some FB ads but have not yet gone that route as I have no experience in that area. Any advice/suggestions would be greatly appreciated. Thanks for reaching out!!