Buyer Contacting Question?

Question

I have been creating my buyer list based on the postings here and have a question I couldn't find an answer to. In regards to e-mailing or calling the we buy houses type ads is it best to mention that I am new to this and ask what they are looking for so I can make sure I dont send them leads they wouldnt be interested in to begin with? I dont want to gain the reputation of having junk deals so that my calls go ignored and e-mails trashed.

Stinson Bland · Answer

Jeremiah,

I think it's best that you're honest with everyone you speak with.  I live in a large market (Dallas/Fort Worth) and it seems like everyone knows everyone in the REI business.  Most experienced investors will be able to tell that you're 'green' as soon as you call with the wholesale pitch... so I wouldn't try to mislead them and get a bad reputation.  I get a couple calls a week from new wholesalers and I have yet to hear back from any of them with deals.

It's great that you're focusing on a buyers list but I also think you should start looking for deals.  It will most likely take a lot longer to find a good deal.  In my opinion, most new wholesalers underestimate the amount of TIME, MONEY, SKILL, and WORK that it takes to find a good deal.  Build a marketing plan and get it in action ASAP... you can and should continue to build your buyers list while your search for your first deal.

I would love to get a call from a new wholesaler that was offering me a REAL (70% ARV less repairs) deal.  I have not had the pleasure of getting a call like that but I'd take the caller much more serious than the rookie that watched the latest Than Merrill 'live' webinar.  I may not be interested in the deal but I'd definitely take note of the caller and make an attempt to meet with him. 
 
Real wholesalers are hard to find and good deals are what separates the wanna-be's from the guys making money.

Andrew Massaro · Answer

"Mr. Buyer, your time is valuable, as is mine.  So I don't ever want to waste your time by bringing you deals you don't want.  That's why it's important for you to make your business, and your buying criteria and preferences, as transparent for me as possible.

For example, do you prefer block over frame?  3/2's or better, only?  Or will you buy a 2/1 or 3/1?  Are there any areas you like/don't like?  Are you buying rentals, or do you plan on fixing and flipping.  If rehabbing, do you go by % of ARV, instant equity, or how do you determine a deal?

Again, the more I know about your business, and what you're looking for, the easier and faster it'll be for both of us."

Jeremiah, put a sheet together with a list of questions.  And, when you're speaking to a buyer, have it out and run down the list.

Good luck!

Jeff Coga · Answer

Dude... just hit the biggest wholesaler in your local area... pimp there properties out t your buyer list. Really it's that simple to do your 1st deal.

Jeremiah J. · Answer

Thanks for the advice everyone. I have started marketing for sellers and will see what buyers I can in the meantime though I will put much less emphasis on that aspect of it. More and more I am figuring out that wholesaling is nothing more than marketing.....and perhaps not as terribly complicated as it seemed at first. You guys definitely help everything seem easier. Thank you.

Rob Gillespie · Answer

Hi Jeremiah,
I always say the same thing to everyone. "build it and they will come". 
What I mean is, forget about building a buyers list, it is worthless without a sexy deal to sell them. Find  a great freaking deal, market the snot out of it, and your list will build itself. 
All of the ones that missed out will be chompin at the bit next time you have something because they will know you are a real player and not just a newbie.
Good luck man!! Go out and find that deal of a lifetime! :mrgreen:

Greg P. · Answer

Everyone has great advice.  I would call them and let them know that you take your investing seriously and ask for their email.  Once you have a working relationship, blast out a email to all your buyers and make sure it's a real deal.  Once you sell a property to a few buyers, call them directly before you blast it out and they will know you are thinking about them before anyone else.  This makes them feel like they are exclusive deals thus being able to negotiate better and being able to sell your deals faster.  Good luck.

Jackeline Petrucci · Answer

Jeremiha, you should always ask what exactly are they looking for like where do they buy, what LTV, what type of repairs are the comfortable with?.  Also you want to ask them if they are a cash buyer and how fast they can close.  You don't need to mention that you are new at this.

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