How to Find Buyers for Your Real Estate Properties
One key to a successful real estate investing business is the development of a real estate buyers’ list. The point of a buyers’ list is to identify individuals or businesses where you can sell a property quickly for a profit or fee.
Not all investment properties require a buyer, like rental properties you plan to hold. However, a diverse portfolio is a smart approach to real estate investment. Short-term holdings, like houses to flip or wholesale properties, offer an alternate way to make money for your business. You can’t be successful with these types of deals without buyers.
The quality of your real estate buyer’s list is crucial. Qualified leads with the financial ability to actually purchase a property is important. Therefore, a shorter list with quality leads is much better than an extensive but unproductive list.
Types of Real Estate Buyers
Real estate buyers come in all shapes and sizes. From new homeowners looking for a forever home to large commercial developers, there’s no “one size fits all” for real estate purchases. However, as a real estate investor, you can narrow down your target market to the kinds of deals you most commonly acquire. Ensure that your buyer’s list includes qualified leads for each real estate category in your portfolio.
Commercial real estate buyers are most often investors that purchase a property with the intent to lease the property to a business. As a real estate investor, you may decide to invest in commercial real estate to hold the property to lease or for a short-term holding to find other buyers that want to own the property long-term.
Residential real estate includes many subcategories. As an investor, it’s easy to find properties to purchase through many different sources. Regardless of how you acquire the property, you must be able to sell it quickly in order to make a profit.
One option is to flip a property and find a buyer that wants to use the property for rental income. Another option is to buy a property and then find a buyer that wants to do the work to improve the property themselves. Either way, a solid buyer’s list with qualified leads, helps minimize your risks.
Wholesale, tax delinquent properties, probate properties and foreclosures are great options for real estate investing; however, they will only produce a profit if you’re able to produce credible buyers.
How to Find Buyers to Build a Buyer’s List
For new real estate investors, one of the first steps to take is creating a buyer’s list. Over time, you will continue to add and remove buyers from your list as you network and learn about the industry.
A professional website with quality content is essential for today’s real estate investors. If you’re treating real estate investing like a business, then it just makes sense to maintain a website. This helps potential buyers locate your business through search engines. Build your email list through your website with well written blog posts and eBooks that potential buyers can sign up to follow by providing their email address.
Advertising is the most common way to find buyers. The options for advertising are vast. Many real estate investors use Craigslist or Social Media to find buyers and build their buyer’s list. Email marketing is another affordable way to stay in touch with potential buyers and qualify leads.
Print advertising also works well. Direct mail in the form of postcards and letters is more expensive to produce but still offers results. Pick a combination of advertising methods to determine what works best for you. The most important element is a direct and solid message.
Build a Network
As a real estate investor, you must build a network in order to succeed. One part of your network is buyers. Over time your network will grow; however, in the beginning you’ll need to be proactive to grow your network. Conferences, online groups and investor clubs are a few ways to meet other people in the industry.
Work with a Real Estate Coach or Mentor
Breaking into any new industry is tough. Educate yourself on how the industry works with a proven and experienced real estate investing coach or mentor. Not only will this relationship provide guidance on the overall industry, but it’ll also help grow your network and guide you to successful deals in order to build a portfolio and buyer’s list.
Build a Solid Reputation
As with any business, reputation is key. People are attracted to professionals that keep their word, operate with integrity and offer good deals. As you work with others in the industry, maintain a solid reputation. If you do this, other real estate investors will want to be in your network and on your buyer’s list.
Get Started Today
You don’t have to wait to start building a buyer’s list. Start with the people you already know. Share your new business goals and ask for referrals. From there, incorporate the other strategies for building a solid real estate buyer’s list. With patience and hard work, your list will grow as your portfolio deepens. Start off the new year right by investing in a solid buyer’s list.