So, What The Heck Is A Buyers List?!
A Buyers List consists of the buyer contacts you have found, so that when you have a property under contract below market value, you can give them a call/email and see if they are interested in purchasing the property. These buyers are investors who are looking to purchase your wholesale to renovate, and then sell for a profit. Or your buyers may be someone who is just looking to purchase the property to live in or rent out to someone.
The reason why this is the first thing you want to do is because when you get your first property under contract you need an EXIT STRATEGY. The last thing you want is to have a deal in your hands and then have to go look for someone to buy it from you. So we are going to build the Buyers List first!
How Do You Build A Buyers List?
The single best way to build your Buyers List is to strategically network! You are going to want to go to the local REIAs (Real Estate Investment Associations) where all types of investors come to network. Here you will find many investors who purchase homes with all cash. These cash buyers are who you want to build a relationship with! They are your go-to buyers once you have a property under contract.
The reason why we want cash buyers as our customers is because they can close on a deal very fast, usually within days, if not, a couple of weeks. This is important because when we write-up the contract with our motivated seller, we normally will have to find a buyer for the property within 2 to 3 weeks before we lose the deal.
A great REIA that I recommend in southern California is the SDCIA (San Diego Creative Investors Association). Their website is www.SDCIA.com, and you will find local cash buyers for your wholesale deals! The events are usually once a month and every one comes for the same reason: to get more business. I have met many buyers at these networking events that have not only made me a lot of money, but have also made great friendships! Another REIA I recommend to go to is the North San Diego Real Estate Investors Association (NSDREIA). Check out their website at http://www.nsdrei.org/.
At the Networking Event…
Be up-front and honest about what you are doing. Usually I start off conversations with “Hello, my name is Alex and I am a wholesaler in San Diego and I have access to properties for sale below market value. Would you be open to doing business together?” If they say “Yes,” then it is imperative that you get their phone number and email so you can contact them in the future.
Organization is half the battle so be sure to and log their information into a Word Document or an Excel Spreadsheet. This is the start to a Buyers List that is going to make you hundreds of thousands of dollars!
This is an example of what my Buyers List looks like: