How to Continually Build a Buyer's List

Question

Hey everyone!

I do dispositions for a local investment group in Tennessee. We have a healthy buyers list, but we are always looking to grow and make connections with more investors.

What have you found to be the most effective means for an ever-growing buyers list?

Do you find that you're selling most of your deals to a small repeat group of investors, or does it depend on the deal?

Jerryll Noorden · Answer

We do the opposite. You will come to find that those always trying to gorw their list usually are for beginner type, of whoelsalers, or those that don't really target good deals.

I periodically delete buyers from my list. I want 24 buyers... calculated from a mathematical equation i developed. It makes things infinitely more efficient, close more deals way faster.

Now I don;t even have to go to the properties anymore. I send 2 of my buyers out, I tell them to make them an offer and add $40K to the price as my assignment fee (depending on the deal of course).

I can do this because I have 24 high-quality buyers I build relationships with. I know it is har to let go of the notion that you need as many buyers as possible, but believe me when I tell you, once you walk a mile in my shoes you will wonder why you didn't switch sooner.

You don't need to grow your buyers list. You need to find good deals!

Lydia R. · Answer

There are lots of options for finding buyers for deals. Here are some of my favorites

1. Facebook groups for investors and wholesalers in your area. Look specifically for groups that allow deal posting because not all of them allow this

2. Facebook marketplace--post an actual deal and add all interested parties to your buyers list

3. Local REIA meetings and real estate meetup groups

4. Foreclosure auctions. This is one of my favorite strategies. Everyone bidding on properties at the auction should be on your buyers list. You already know they're buying and they have the cash to close.

5. Listings in the area. Any time I have a property under contract I get on Zillow and look at flipped properties that are for sale or recently sold. I call the seller because they were the investor who rehabbed the house or the agent who represented the seller to find out if they want to buy more property in that same area. Same goes for rental properties. The owners of active rental listings are landlords who may be interested in acquiring another rental property in the same area.

6. Propstream--great tool for finding hedgefund buyers and large investment groups.

7. Hard money lenders. Another one of my favorite ways to find buyers! Hard money lenders have a database of investors they've loaned money to for real estate investments. They can push your deal out to their entire list. Why would they do this? Hard money lenders dont make money unless they give loans. Pushing out your deal directly benefits the lender because they make money if an investor decides to buy it.

8. Mid size and large property management companies. Same reasons as a hard money lender. They have a database of clients who own rental properties. If someone wants to buy another one the property management will most likely be the one to manage it. You can always count on someone to do something that directly benefits them.

This is by no means a comprehensive list but I have used all these methods to build my list.

Leo Singh · Answer

Hi Sophie , which market are you in ?

Cara Ledman · Answer

I'm also in Nashville and am also interested in this Sophie! I have had success on Facebook, craigslist, and networking. I have been going to a lot of meet ups and reaching out to contacts I already have. Nashville has such a great community of people who are interested in doing cool projects and making our city better! I've been going to coffee meet ups and happy hours and loving hearing about the renovations people are working on. Auctions are again a great way to meet people, but I think it's good to be natural and just want to meet people and get into the community without selling something immediately.

Mike Klarman · Answer

I run a network in Philadelphia for Investors.  I've found some people I meet are ready to go.  They have like 250k in the bank and as soon as deals pop up they are ready.  If my contractor, my agent, and I agree on the ARV then I shop the deal.  I obviously go to the investors ready to go.  The ones ready to go are the ones emailing me asking when another project will pop up.  The squeaky wheel gets the oil.  I have investors that feel comfortable doing two projects at a time and some that want only one per year.

A buyer's list is always quality over quantity.  You can have a thousand indecisive, scared investors or a list of 10 active ones.  I find myself getting pickier and pickier with the investors I work with now that I know what qualities make the best investors.  Need capital, need decent credit, and need an attack mentality.

Zane Cress · Answer

BP is a good place to start and FB RE groups will have a lot of people on them, but also trash and spammers.

Eliott Elias · Answer

Facebook & networking with realtors.

How to Continually Build a Buyer's List

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