What should I be doing first?

7 Replies

Should building a cash buyer list be my first priority? If so, what are some good ways to do that? 

ill be the first to go on your list.     so what can i buy?

do u see the problem here?

find deals first. buyers with cash will come to you if the deals are good.

In the good economy, there are less deals and lots of cash buyers.

In a bad economy, there are tons of deals, less cash buyers.

I personally have preferred to build my list first.  It has given me an opportunity to build rapport and has told me what they are wanting to buy.  Then I can better target my area, specifications etc.  I touch base with all my buyers often to say hi and see what they are currently interested in.  For instance, one of my buyers just bought and is flipping properties.  Their time is limited and so they are no longer looking for big renovation properties.  They want less repairs for rentals.  That is a shift because of his current situation.  

Originally posted by @Paul Choi :

find deals first. buyers with cash will come to you if the deals are good.

In the good economy, there are less deals and lots of cash buyers.

In a bad economy, there are tons of deals, less cash buyers.

 How would cash buyers come to him?

You have to build your list first even if buyers are annoyed by you at first.

Step 1. You can find out what zip codes are hot buy doing a listserve trick to determine the better zip codes. (Your cost $0)

Step2. Then you buy a list of recent absentee home purchases for $6 from Fiverr per zip code (hopefully you found  1 or 2 in step 1). If you spend five minutes per property and do some reverse engineering you'll figure out if the property was bought as a rehab. (Your cost $24) 

Step 3. Some of the lists have phone numbers all of them have addresses. You can send a post card to the buyer and ask them to look at your properties for sale as long as they sign up for your list. You can call them and ask if they are looking for more properties like the one they just purchased (You may need to skip trace the investor). (Your cost $150) 

Step 4. Put out bandit signs in the target zip code(s). Two types

4.1. "We Buy Houses ..." (Your cost - $200) Put out 10 every week at different areas of town until you find a good fishing hole.

4.2 "Please buy my house by Dec 1st or the bank will win. Tel/Text XXX-XXX-XXXX,  3 Bedrooms 2.5 Bathrooms" (Your cost - $5)

Step 5. After two weeks you should have a real buyers list of  100 cash buyer. Join other investors wholesale lists and offer to co-wholesale their property for free. You'll ask the buyer to throw you some funds at closing or just keep gaining knowledge and growing your list. (Your cost $0 - You might make money)

Step 6. You now have a power house list of 1000 names of private money, hard money and rehabbers. You can do deals yourself and stop being an annoying new wholesaler.  (Laugh all the way to the bank) 

Hi Craig, congratulations...just read your profile and you have the right attitude all around.   You asked this question in the wholesaling forum so we can assume that you mean what to do first in wholesaling...but your profile shows bigger goals.  Starting in wholesaling, as you know, is going to help you develop the negotiation skill sets that you'll use as you progress...so that is great...and you'll develop them without having to risk your capital and credit as you would in other niches to start.  Stepping into a PRO version at BiggerPockets will help.  So will finding someone to help you plan each day the right way so you have the confidence in how each tasks you are doing is fitting into a bigger implementation path that will lead to consistent deals.  Nothing wrong with poking in and out of free sites and forums and asking questions, but at some point, it's best to follow a proven path...otherwise you just don't know what you don't know or what should be asked when and in what best order and so on. (Just like now you are following a curriculum to get your degree...you're not popping in and out of clinics and asking questions to gain knowledge.) Working with someone hands on is also going to speed up your conversations with buyers and sellers as you borrow real confidence as your own.  So, that would be my advice for you now...get plugged in with someone that you feel comfortable working with....and the second part of that...is once you start...don't ever quit!  Good luck...you can do it!

Originally posted by @Michael Plante :
Originally posted by @Paul Choi:

find deals first. buyers with cash will come to you if the deals are good.

In the good economy, there are less deals and lots of cash buyers.

In a bad economy, there are tons of deals, less cash buyers.

 How would cash buyers come to him?

Hi Michael, I just realized that this is the wholesale thread but in any case, if you have a great wholesale deal and get a contract, you can advertise it here on BP or other places and investors with cash will come to you. If it's for flipping (which I usually do), a good deal has solid numbers, approach a HML if funds are needed, they run their numbers and if they concur, they will check out the property and fund your project.

In the past, I have approached lenders and private investors saying that I am interested in REI and will find deals. They usually say "that's great, what do you have?"

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