Building A Wholesale Buyer’s List. Its Easy as 1-2-3.
Just because you found the deal, that doesn’t always mean you’ll see the money. When it comes to wholesaling, the biggest worry (other than, “how can I find an avalanche of deals” is, “how do I actually sell the homes that I have under contract?” This is where wholesalers often hesitate to get the ball rolling. This is where any momentum gained is usually stopped dead in its tracks!
TIP: If you are wholesaling real estate, the money is not in the deals you find – the money is in your buyer’s list! You must be actively building a wholesale buyers list at all times. If you are a wholesaler this is job #1 – and its as easy as 1-2-3.
Real Estate Network
The challenge is; how do you put together a wholesale buyers list when you haven’t sold a dad’gum thing? In a word, you’ve got to get out there and meet people like me who are always looking for great deals. You’ve got to build a massive real estate network that includes; other wholesalers, cash buyers, hard money lenders, newbies, bird dogs, mentors, title companies, contractors….and did I mention buyers?
Variety is the spice of life, right? Well the same principle applies to your buyer’s list. You want a list complete with low-end property landlords, high-end property rehabbers, multi-unit buyers, newbies, seasoned cash buyers and the like. You need solid buyers not tire kickers. A lil’ this, and a lil’ that to cover every possible situation.
Suppose for just one minute that you come across a fat-cat buyer like me. We meet, and I show you proof of my $1 million dollar war-chest of cash. I then tell you where I’m looking and precisely what I’m looking for. Ask yourself, how many buyers like me would you need to make you real happy? The moment you find 5-6 buyers like me, you will reach wholesaler nirvana; that rarified category known as, “order taker.” Think about it. I give you my buying criteria, and you simply cast your net out knowing that if you catch one that fits my criteria, you’ve already got a buyer (me) before you even sign the purchase contract! How sweet is that?
BTW, the greatest Wholesaling book I ever read, and the one that launched my investing career is RIGHT HERE! Steve Cook has created more real estate millionaires than any other Guru in the business, and Wholesaling for Quick Cash is the book that started the careers of guys like me, Than Merrill, Preston Ely, Kent Clothier, Shaun McCloskey….and the list goes on! This book is the only guide you need. I’ve read it at least 25 times, and I still get something new each time I read it.
Building Your Wholesale Buyer’s List
So, how do assemble said list, you ask? Believe it not, post on Craigslist for starters. Ohhh, zip it. I know, know….Craigslist can seem like a cluster “f” at first, but it’s actually a great source for running ads. Or, you can put the word out in your local newspaper classifieds with headlines like “Fixer Uppers – Major Discounts – Financing Available.” When investors call (and they will call), be engaging and ask questions. How do they pay for their homes? (Cash is best) Where do they like to invest? What are they wearing? Ok, for real…only ask that last one if she (or he) has a smokin’ hot n’ sexy phone voice.
Tip: The VERY best way to find cash buyer’s is to search your local MLS for recent “cash” sales. Pick a zipcode, refine your search to the past year, and search for houses that settled with cash. Most MLS’s can do this – but you usually have to modify the search fields. This is your never ending GOLD MINE for buyers.
At first, you may find yourself telling investors (often) that you’ll call them back when you have something for them, but in time as you build your list, you will have a potential buyer for each property before you even have the deal under contract. It just takes time, so be patient. And remember, if you have a great buyer’s list, you can always market the deals of other wholesalers to your buyers. I’ve always been a rehabber, but from time-to-time, I do come across deals that I’ll wholesale. When I first started, I didn’t have a buyers list. When I’d come across a deal, I’d simply call the best wholesaler I knew, and we’d work out some split of the wholesale fee. In 2006, I found a deal that he sold for me and we split a $32,000 wholesale fee. All told, I think I had an hour in the deal – and he made one phone call to his best buyer. Not bad. THAT’S THE POWER OF A GREAT BUYER’S LIST!
How About War Zones?
Who the hell wants to invest in a war zone, anyway? Before the real estate bust, people were buying houses in some of the worst parts of Baltimore City, and every other major city in the U.S. These days, most investors have left those neighborhoods for greener pastures. When you’re new to the wholesaling game, you don’t know where you may find buyers or deals – so try everything. Just don’t become known as the guy who only peddles junk! There are plenty of those kinds of wholesalers out there. For now, you can go balls to the wall and start making offers the low-hanging fruit in war-zones. Just don’t be surprised if you don’t find buyers lining up to get a piece of the war zone action.
Turnkey Wholesalers Make Bigger Money!
Rookie investors can become your best customers if you can package up your deals like presents on Christmas. Think of it as turn-key wholesaling. You’re not only providing them a smoking hot deal, but also contact information for a potential lender, and even a contractor or two to do the work. If you’re not doing this for your investor customers, you’re really losing out on BIG MONEY. Start thinking in terms of how you can package up your deal to make it as irresistable as possible for your customers. I get calls all the time from wholesalers looking to make $10K cash – and all they give me is an address and an asking price. I usually hang up the phone and forget the call immediately. Look, if you want to make a huge wholesale fee – at least do some work for the money!
Most wanna-be rehabbers don’t know where to begin, so be their Sherpa. Take the guess work outta the game for them. Provide them with solid purchase, and rehab numbers, provide great pictures, refer them to a hard money lender who already knows the details of the deal, and finally – get them a contractor or two who can do the repairs. Do all that – then you can shout, “Show Me the Money,” like Jerry Maguire, and I promise you – they’ll keep coming back like Pavlov’s dog to a plate of Alpo!
Are there ton’s of strong cash buyers out there like Craig Fuhr? Hell’s yes! I DO PAY A MINIMUM OF $10,000 CASH for Wholesale Deals. So start looking for those deals and start building your network. Provide great service to your buyers. Prove to them that they need you, show them you’re valuable, helpful, and knowledgable. Before you know it, you’re weak, pathetic, barely-there buyer’s list will be chock full of top-notch buyers’ names, and you’ll be one productive, money-making, wholesale check cashing, SOB, happier than a pig in poop.