Rental Property Investor · Pittsburgh, PA · Member since 2019 · 530 posts · 511 votes
4y
There are two ways to approach this.
1) Find a few buyers, get their buy box, attack that box and bring them deal after deal. The buyers should have deep pockets if you want to scale.
2) Get a lot lot lot of prospective buyers.
I like #1 if you are starting out because you can focus on specific neighborhoods/styles/school districts/ etc. and not be all over the place.
However, #2 brings competition. Competition brings higher prices. Higher prices mean more in your pocket.
The general rule of thumb I have heard from many folks is a list of more than 1,000 is needed to routinely move everything you may get. When you only have a few hundred names you will often sweat it out to see if you will get what you are asking, or sometimes even an offer.
I have a mix. I have a couple buyers that will buy anything in a specific box, and I do transactions with them regularly. However, one just added a restriction that rents in the location must be north of $1,000/mo. This is because their property management fees have gone up and they can’t make margins at less. This is a problem because about half my advertising has been focused on this demographic. So now I need to adjust. This is we’re having a deeper list to blast would benefit me, but I only have a couple hundred right now.