There are a number of ways to build a wholesale buyers list, but the most effective method is through networking. Getting involved with local investing groups and online forums is a great way to meet other investors and learn about new opportunities. Attend trade shows, conventions, and seminars related to real estate investing, and be sure to exchange business cards with everyone you meet. You can also search online databases like the National Association of Realtors to find potential buyers in your area. Once you’ve built up a sizable list of contacts, you can start calling or emailing them when you have a deal to offer. With a little effort, you’ll soon have a thriving business as a real estate wholesaler.
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 worth it when you have multiple people interested in your next investment opportunity.
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:
- First & Last Name Of Buyer
- Phone Number
- Email Address
- Buying Criteria
- Type Of Funding
- Personal Information
- 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
The wholesale real estate market offers investors a number of advantages, chief among them the potential for quick profits. Compare a wholesale deal to a rehab or buy and hold investment, and it’s easy to see why speed is of the essence in the wholesale business. holding costs can eat into profits, so the goal is always to move the property as quickly as possible. That’s why having a robust buyers list is so important for wholesalers. But how does one go about building such a list? There are a few tried and true methods that can help get you started.
Consider trying on or more of these techniques as you build a real estate wholesale buyers list:
- Attend networking events and trade shows to meet interested investors.
- Launch an email marketing campaign to reach large numbers at a time.
- Start a direct mail campaign searching for potential buyers.
- Hand out business cards to anyone you meet, letting them know what you are looking for.
- Create content online to spread the news about your real estate investing business.
- Build a strong website to attract potential leads to your business.
- Post on social media and begin building an audience online.
- Place a few well-positioned bandit signs in your market area.
- Look around the neighborhood for “for rent” signs.
- Search Craigslist for real estate investors who may be searching for a new property.
- Partner with a real estate agent who may know of interested buyers in the area.
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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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 Marketing is one of the most efficient and effective ways to reach your target audience. It allows you to send customized messages directly to your customers, and track their engagement with your brand. Additionally, email marketing is a cost-effective way to reach a large audience, and it’s easy to scale up your campaigns as your business grows. When done right, email marketing can be an invaluable tool for building relationships with your customers and driving sales.
Direct Mail
Direct mail is a form of marketing that involves sending physical advertising materials through the mail. This can include items like postcards, flyers, coupons, or catalogs. Direct mail is a popular choice for businesses because it offers a way to reach a large number of potential customers with a targeted message. One of the key advantages of direct mail is that it allows businesses to track and measure results. For example, businesses can use unique codes or offer special discounts to customers who received the mailing. This helps to assess the effectiveness of the campaign and make necessary adjustments. Additionally, direct mail can be customized to target specific groups of people, making it an effective way to reach a target audience. When done properly, direct mail can be an effective tool for promoting your business and driving sales.
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
Content marketing is a type of marketing that involves creating and sharing online material (such as videos, blogs, and social media posts) that does not explicitly promote a brand but is intended to generate interest in its products or services. The goal of content marketing is to build brand awareness and loyalty among customers and potential customers. While traditional marketing techniques such as advertising can be expensive and intrusive, content marketing allows brands to connect with their customers in a more organic and authentic way. In today’s crowded marketplace, content marketing can be an effective way for brands to break through the noise and connect with their target audiences.
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 your target market, keep a pen and notepad on hand to jot down phone numbers from “for rent” signs. Calling these numbers will put you in touch with potential landlord buyers – perfect candidates for your buyers list. Landlords are usually always looking to expand their property portfolio, so they can be great people to have on your buyers list long term. Plus, if you build up a good relationship with them, they may even refer other potential clients to you. So next time you’re driving around town, don’t forget to keep your eyes peeled for those all-important “for rent” signs!
Craigslist
Craigslist marketing is a great way to get started in wholesale real estate. It’s free to post ads, and you can reach a large audience of potential buyers. You can choose to post 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 more responses. To maximize your results, consider posting in the “For Sale By Owner” category and including a link to your squeeze page. You can also hide your email address so potential buyers are forced to call you. With a little effort, Craigslist marketing can be a great way to build your wholesale buyers list.
Real Estate Agent
Real estate agents are often the first point of contact for potential buyers and sellers in a given area. As such, they are required to have a deep understanding of the local market. This knowledge can be invaluable to buyers who are looking to purchase a property in an unfamiliar area. Real estate agents can provide insights into potential deals that may not be apparent to the naked eye. In addition, they can help to facilitate negotiations between buyers and sellers. As a result, real estate agents can be a valuable resource for anyone looking to buy or sell a property.
Tips For Building Your Wholesale Buyers List
Building a wholesale buyers list from scratch can seem like a daunting task, but with dedication and hard work, it is definitely possible to create a database of interested and qualified investors. To get started, it is important to get out of your comfort zone and start meeting people who fit your buyer profile. Attorneys and title agents, for instance, often work closely with investors and can be a great source of leads. In addition, hard money and private money lenders are likely to be aware of active investors in the area, which can be helpful in identifying potential buyers. Finally, property management companies often have direct contact with landlords who may be interested in selling their properties, making them another excellent source of leads. By taking the time to reach out to these groups, you will slowly but surely build up your wholesale buyers list
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