Size of buyer's list

8 Replies

Assuming I have a quality deal to market and my buyers are reasonably qualified to be on the list, how large does a buyer's list have to be before it starts to have a significant chance of finding a buyer for a deal in your experience?

some will say that they ou need to have a buyers list of thousands to move properties in hours not days or weeks but I think that you don't need that many but you defini need to have a good handful that you know can close fast. 

One good one is infinetly more valuable than 50 not so good ones. I would focus on finding one good one.

We have four  buyers that we were able to sell all our wholesale deals to in 2014. Three of them bought all their deals from us. 

After taking each to lunch at the end of  the year I found their rehab goals for 2015

Buyer 1.  8 rehabs

Buyer 2. 4 rehabs

Buyer 3. 10-12 rehabs

Buyer 4. 8-10 rehabs

So between these four, I can sell them 30-34 houses.

My answer is you really need one, two is typically better, but i wouldnt be spending much time putting a big buyers list together. It is much more important to have one good buyer that does volume and can consistently close whenever a good deal is presented, then to have a lot of pretend buyers that cant close. 

I agree with Dell. To add to his point, build a relationship with those buyers where you know what they are looking for in a property and margins on the deal.  There is nothing worst then bringing a deal two four differant qualified flippers who say it was not a deal to start with.  a few (up to 10) solid Relationships is the key.

The really good wholesalers have a small handful of really good buyers. Some will say 5 buyers buy 80% of their deals. In order for that to happen you need to find the kinds of deals these buyers want. Not just a good deal but a deal in their area that meets their criteria. A good friend used to say he pretty much knew who was going to buy a house when he got it under contract and would sell it with one phone call. If that buyer didn't buy he would go down his list and have it sold in an hour. 

However there are also wholesalers that have thousands on their list and they blast it out to everyone. I used to be more of the second type but now our better deals go in more of the first way.

As long as you have some clue about how to market, it is more about the deal than the list. If you have a good enough deal you can find tons of wholesalers that are willing to find you a buyer.  By the way I hate the term "Co-Wholesaling". It screams "I am a newbie fresh out of a seminar."

If you truly find a good deal, you won't need to worry about having a ton of buyers to market the deal to - someone will eat it up. Taking the time to build relationships with your buyers really helps. You get a better understanding of what they want exactly, and how fast they can move on a deal. 

All you need is a good deal -- if you've got that, you don't need to worry about a list.  That can/will come.  As for the size of a list, all you need is one person, but a handful of active investors will work just fine.

There is little need for some huge list of investors as the gurus would tell you....

Originally posted by @Joshua Dorkin :

There is little need for some huge list of investors as the gurus would tell you....

Josh, yes there is  -  if you try to wholesale crappy deals like the Gurus make you think you can get away with! LOL

It is not about how many buyers you have that sells your deals it is about finding what your buyers want. Building a good relationship with your buyers is key. Make sure the deal works. If it doesn't.....walk away.

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