Wholesaling real estate is a great way to start investing, even if you have little to no experience. However, there’s one thing you must know before getting started: the central component of wholesaling is a wholesale buyers list. As the “middleman” between investors and profitable deals, this accumulation of contacts will serve as one of your greatest assets, a myriad of buyers seeking lucrative opportunities that you can call upon when you have a deal for the taking.
The possession of a well-devised wholesale buyers list — complete with an abundance of active investors — will serve as a tool to not only sell properties faster but for larger profit margins. Simply put, a buyers list is invaluable, which begs the question: How does one go about constructing a reliable wholesale buyers list?
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What Is A Buyers List?
A buyers list is a catalog of investors or entrepreneurs who may be interested in finding their next deal. It should include relevant contact information like first and last name, phone number, and email address. A good buyer list will be updated (and added to) regularly to ensure you always have options when presenting an investment opportunity.
While businesses of all types can utilize buyers lists, they are often referred to in real estate in the context of wholesaling. Due to the nature of a wholesale deal, investors should aim to curate a reliable buyers list so they know where to assign contracts. Unfortunately, doing so may take time as there is not one magic real estate investor list floating around the industry. Developing a reliable list of contacts will require some effort, though it will be well worth it in the end.
Why Have A Wholesale Buyers List?
The quintessential ingredient to a successful wholesale career is the wholesale buyers list. Wholesaling is a two-part equation; it’s comprised of not only securing a property under market value but finding an end buyer. Waiting until you have a property under contract to build a buyers list is a disaster waiting to happen, as this will almost always accumulate several costs and penalties in the process. On the other hand, having an extensive list of prospects at your disposal will legitimately increase your chances of securing timely and profitable transactions, with the hopes of becoming a stream of uninterrupted income for investors.
You have the property under a real estate wholesale contract, you’ve paid your earnest deposit, and now it’s time to assign the contract to a buyer. Who do you go to? This is where wholesalers lists come in. The first step in building said buyers list is establishing a pool of talent. This will also encompass some type of information on potential suitors, including but not limited it:
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First & Last Name Of Buyer
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Phone Number
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Email Address
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Buying Criteria
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Type Of Funding
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Personal Information
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Source Of Referral
In addition to collecting potential real estate leads, investors should have a system in place for identifying them based on criteria. A typical real estate lead should be categorized by one of the following factors: budget; buying criteria (residential, multifamily, commercial, etc.); and type of project (rehab, prehab, rental property, etc.). A majority of investors will have their own vision of the perfect deal, with a predetermined amount of money they’re willing to spend. As a wholesaler, it’s your job to align investors with deals that fit their investment criteria. Therefore, having a database of information will help to not only improve efficiency among transactions, but also boost participation with investors.
It’s also important to note that while wholesaling offers numerous opportunities for beginner investors, a wholesale buyers list won’t build itself. The driving force of constructing a wholesale buyers list is derived in a real estate lead generation campaign comprised of four cornerstones: prospecting, generating interest, converting interest into sales, and managing leads to repeat the process.
How To Build A Buyers List 11 Different Ways
Compared to a rehab or buy and hold deal, the wholesale deal process moves rather quickly. Investors should be focused on speeding up the transaction to minimize holding costs and maximize overall profits, which is why it is crucial to have a buyers list ready to go. So how can one build a resourceful wholesale buyers list? Luckily, there are several tried and true methods that can help you get started.
Consider trying on or more of these techniques as you build a real estate wholesale buyers list:
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Attend networking events and trade shows to meet interested investors.
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Launch an email marketing campaign to reach large numbers at a time.
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Start a direct mail campaign searching for potential buyers.
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Hand out business cards to anyone you meet, letting them know what you are looking for.
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Create content online to spread the news about your real estate investing business.
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Build a strong website to attract potential leads to your business.
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Post on social media and begin building an audience online.
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Place a few well-positioned bandit signs in your market area.
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Look around the neighborhood for “for rent” signs.
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Search Craigslist for real estate investors who may be searching for a new property.
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Partner with a real estate agent who may know of interested buyers in the area.
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Networking
One of the more simple techniques to generating leads is attending networking events. From auctions and networking groups to local REIA (Real Estate Investor Association) meetings, these events are loaded with potential buyers and industry professionals to add to your list. Here are a few events you can check out when building a buyers list:
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Networking Groups: Try searching for real estate investing events in your area to make new connections. Search on Facebook or local bulletin boards for meetings near you.
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REIA Meetings: Local REIA meetings are a great place to start when it comes to building a buyers list. Chances are, many investors present are looking for a way to land their next deal.
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Auctions: Attend a few courthouse auctions and take note of potential buyers. After the auction is over, try approaching a few buyers to learn more about what they are looking for.
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Home And Trade Shows: Trade shows are yet another great place to build a buyers list. Treat these similarly to other networking events, and make note of potentially interested investors.
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Meetup.com: This website is a great place for real estate investors of all types. Search through your local area for events you can attend and show up ready to mingle.
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Closing Attorneys: Attorneys and other professionals often have a first hand position in real estate transactions, meaning they likely have a strong network of connections. Build a relationship with a closing attorney and see if it leads to any potential buyers.
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Money Lenders: Similarly to closing attorneys, money lenders have a unique look at the real estate transaction process. Pay attention to any lenders in your area and set up a meeting if you can.
If you play your cards right, you should be able to leave each of these events with at least a few connections to add to your buyers list.
Email Marketing
Email has revolutionized how we interact with a potential customer. This digital marketing tool allows investors to reach hundreds of thousands of potential investors with the click of a button. Along with expanding reach, email marketing is an invaluable resource for building a wholesale buyers list. The question remains: Who are you targeting?
Direct Mail
Another inexpensive and efficient way to garner interest for your business is through direct mail marketing. This proven tool is excellent for creating wholesalers lists, helping to reach new audiences, and generate a measurable return on investment. The basics of a direct mail campaign will consist of identifying your target audience, determining which type of direct mail piece to use, and setting up your inbound system.
Business Cards
Simply put, business cards are a must-have in real estate investing. This ageless marketing tactic provides investors with an affordable outlet for drumming up interest in their services.
Content Marketing
In its simplest form, content marketing is the production and sharing of media and publishing content to acquire customers. When used correctly, content marketing can be very advantageous for investors, as it can build trust, dismantle fears, and generate leads above all else.
Website
A professional website is mandatory in today’s marketing landscape. As the virtual face of your business, a business website will serve to not only establish an online presence but establish credibility in the process. In essence, your website will be a central location for potential clients to visit and browse information on your services.
Social Media
The marketing platform of yesterday has been transformed into today’s social media. Not only is social media marketing an endless source for real estate leads, but a huge portion of Americans — roughly 78 percent — have a social media profile, a five percent increase from last year. Sites like Facebook, Twitter, and LinkedIn have become a haven for attracting and retaining leads when building a buyers list.
Bandit Signs
You’ve seen these signs everywhere. Driving down the street, through a neighborhood, or on the freeway. You can use bandit signs to find properties, and you can use bandit signs to find potential buyers. If you are using your bandit sign marketing campaign to curate a buyers list, the sign should read something along the lines of “Cheap House! Must Sell Fast!” And your phone number. These signs can be handwritten or professionally printed. If you have a property under contract, you should scatter 20 + signs throughout your local market. Ensure your signs in high traffic areas like busy cross streets or crowded shopping mall parking lots.
”For Rent” Signs
As you drive through the streets of one of your target markets, keep a pen and notepad by your side to jot down the phone numbers on “for rent” signs. Calling these numbers will contact potential landlord buyers; perfect candidates for your buyers list. Landlords are often looking to expand their property bank and, therefore, can be great people to add to your buyers list long term.
Craigslist
Craigslist marketing is like the online version of bandit signs. Building your wholesale buyers list using Craigslist is great for beginners because it is absolutely free (unless, of course, you’d like to pay a virtual assistant to do your dirty work, which could be helpful once you start expanding your other marketing efforts).
Start by placing your ad in the “For Sale By Owner” category of the appropriate neighborhood. Hide your email address, so potential buyers are forced to call you. Also, consider including a link to your squeeze page to capture people’s email addresses. You have the option of posting a generic ad (similar to a bandit sign) or an ad that contains the details of each property. Typically, ads that give away more details are looked at as more reliable and therefore receive better acclaim. Consider switching up the style of your ads and note when you receive calls from the best buyers. Be willing to experiment on craigslist, track your results, and tweak your techniques.
Real Estate Agent
Does anyone know your local market better than you do? If you answered yes, chances are it’s a real estate agent you are thinking about. They are required to know the ins and outs of a local area, and more often than not, they will be aware of any potential buyers and sellers in the area. That’s why they make an invaluable resource to the start of any buyers list. Try building up relationships with real estate agents in your area to get the ball rolling. Later on down the road, they may present you with a list of contact information that could be instrumental in closing your next deal.
Tips For Building Your Wholesale Buyers List
Building your wholesale buyers list will take time and dedication at first. To build and grow a reliable database of contacts to reach out to when you are ready to wholesale a property, you will need to get out of your comfort zone to meet people who fit your buyers list needs. Sometimes opportunities to build contacts might not be as obvious as you think. For instance, attorneys and title agents in your area are likely to work closely with investors and can be a good resource to point you in the right direction of interested investors. Hard money and private money lenders can help inform you of who is buying deals in your area, which can be great contacts for your buyers list. Property management companies can help connect you with the landlords they work closely with who are looking to sell a property. You can also attend local property auctions to meet buyers who may be interested in your future deals.
Summary
If you’re ready to start a wholesale investing career, start by building a buyers list. There are many proven strategies that savvy investors can use to connect with a wider variety of real estate professionals to build and grow your buyers list. Once you’ve accumulated a solid list of contacts, you’ll be closing deals faster than you can find new properties.
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