This week I was at the Los Angeles auctions in Norwalk, CA. I frequent the actions often but this week I noticed something I hadn't previously and wanted to share.
I was approached by a wholesaler after bidding on a number of auctions. The wholesaler sat in the background and watched for people to bid on properties in his farm area. He made it a point to speak with each bidder and ask for specifics about their buying requirements and needs.
Its a simple but genius idea. The auctions in LA have 100+ bidders on any given day. What a great place to build a massive buyers list, who you have already prequalified as cash buyers. In order to purchase from a home at an auction, you are required to pay all cash, on the spot for the property. There is the exception but generally you can count on all of these bidders to be cash buyers.
Introduce yourself and your business. Let them know that you can bring them properties, at a discount and would love to add them to your buyers list. Make sure to find out specifics about what their buying requirements are. This will allow you to be more specific with the opportunities that you present to them.
As a cash buyer myself, I am on a number of wholesalers lists. I can tell you that I receive dozens of emails each day but the majority of the time, most of the properties don't fit my requirements or my area and I often don't review every one. By segmenting your lists and only presenting deals that meet those buyers requirements, you will have a much better chance of those buyers not missing deals from you, since you only present them with properties they will be interested in. You will build a lot more credibility as well and as a wholesaler, you will stand out from your competitors.
That's some seriously great info. Thanks for sharing!
I agree with you Josh. I'm a wholesaler in Orange County and this is a tactic my partners and I use to find cash buyers. Thanks for the tip on segmenting the lists.
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