Would you believe that a smaller buyers list could be more successful than a massive one?
All too often, real estate pundits preach that buyer’s lists need to contain thousands of names. But this numbers game can be misleading. Think about the times that you have been placed on someone’s buyer’s list. Do you really click on those emails and read the mass messages that they are cranking out? Why would you think that your potential buyers will be more loyal and dedicated when it comes to reading your mass emails? For a higher level of success, it pays to invest more time cultivating a smaller list of quality buyers than sending out thousands of emails that will never be opened or read. And here is how you can accomplish that task.
What is Wholesaling Real Estate?
Wholesaling is the practice of buying an item to resell it at a profit. This practice doesn’t just apply to retail items, though — it can also be done with real estate. When real estate is wholesaled, though, it is not bought beforehand. The purchaser will enter into a contract to purchase the property in question, but before finalizing the contract, sell it to another buyer who pays a higher price. The wholesaler pockets the difference between the initial sale price and the final sale price, and it is a valuable way to get started in real estate investing.
To make a profit, though, you need to be able to pursue leads effectively and identify profitable properties. This requires skill, but it’s a skill that anybody can hone. You need to have a buyers list to reach out to. A lead generation platform is the best way to build your buyers list and jumpstart your wholesaling endeavors.
What is a Buyers List?
One of the most significant assets you’ll develop in your wholesaling career is your buyer’s list. As the name suggests, this is a list of the prospective buyers interested in purchasing properties you are wholesaling. The information may be compiled from your network or come from data you’ve found online. The most effective buyers list will be a combination of both.
To develop a buyers list, you should consider who you know that may be interested in real estate investments. There are usually a few people in a person’s circle who can be added to this list. You should then add them and their contact information to follow up with them when properties become available.
However, a buyers list usually comprises leads that you aren’t personally acquainted with. These leads will come from public records, web searches, or a lead generation platform that collects data from various sources. This platform can be a simple and accessible way to quickly build up your buyers list with accurate and actionable information.
All About Relationships
Relationships are the lifeblood of your real estate business. Creating a connection with a small group of the right people is going to set you apart from all of the competition and provide the results that you are really looking for. Instead of a massive buyer’s list, you will have a massive list of completed sales.
To forge a connection, you need to get to know the people you are working with as buyers. Find out:
- Their investment strategy
- Their goals on a per deal basis
- Their rehab budget
- The areas that they prefer to invest in
Then offer them what they are looking for in a deal. Make your services feel more customized than cookie-cutter, and buyers will respond. Forget the mass mail and only send your deal to the buyers who match the criteria. And you will see a massive increase in your success.
Don’t Be Junk Mail
How many emails do you open each day? And how many do you simply delete as junk or not worth your time? Think about your buyers now and how they will react to your emails. If they know that you send every deal you have to them, they are not very likely to read each one and decide if it meets their needs. However, if they know that you are selective and weed out the deals that won’t interest them, they are more likely to open and read each of your emails. Buyers will know that when they see your name, there is a potential deal out there that could be perfect for them rather than just some random offering.
Go For Quality
Your buyer’s list should include people that you know are interested in and motivated to buy. This will eliminate a lot of the names that bought once like to shop around but never close the deal, or just people trolling for information. You want to get your properties in front of a large number of buyers, but only if they are legitimate buyers.
And with a smaller list of buyers, it is easier for you to get to know each one, their likes and dislikes, and begin to foster a long-term relationship. Think of yourself as the custom deal locator or seller. Invest time and energy in your presentation and then offer your great deal to the buyers who will be most interested and ready to jump on it.
Don’t get caught up in thinking that this numbers game is all about massive lists of buyers. You need to cultivate a quality list of legitimate buyers whom you know are primed to act. This added service from you and the quality deals that you bring to your buyers will definitely increase the most important number- your profit, not the number of names on your buyer’s list.
You should also be prepared to start attending property auctions as a wholesaler. This is one of the most promising spots for beginning investors who want to grab properties at a bargain and see impressive profit from minimal investment. As a wholesaler, though, you probably won’t be there to buy. You’ll be there to network, learn about the business, and get names to add to your buyer’s list.
At the auction, you should pay attention to who’s bidding and make an effort to connect with them. These are the kinds of buyers you want to reach out to when you’re wholesaling a piece of property. Connect with them by introducing yourself, asking their name, and asking if you may reach out to them if a good piece of property becomes available. In many cases, buyers will be happy to become acquainted with a wholesaler, and you’ll have another name to add to your list.
Wholesaling may seem like a challenging way to enter the real estate market, but with the right data and a solid buyers list, you can confidently enter the market. You can assemble a buyers list quickly by investing in a lead generation platform and attending auctions that allow you to meet real estate buyers. Remember that the bigger your list is, the more quickly you’ll be able to sell your contracts — and the bigger your profits will be, too.