Whether you plan to rehab or wholesale, you'll need to build a buyers list. These are the investors to whom you'll sell properties. If you plan to wholesale, these folks can make you very rich.
If your goal is to rehab, from time-to-time you'll come across a property you can't do because of a lack of finances. Call the investors on your buyers list and make some quick cash selling the property to someone else.
The first step is to run an ad in the paper that says something like:
Handy, investor special
Great deal for rehabbers!
Thousands below market–Won't last!
When investors begin calling, get their information. Take their name, number, fax, and email, and put that information in a database. Then the next time you find another deal, you'll have a list of buyers. Run your ads for sixty to ninety days. Even if you sell your property the next day, keep the ads running.
Tell the investors that the property sold; however you are working on another, and ask if you can you call them once the deal is finalized. They will always say, “yes.” Our buyers list has close to one thousand names. We have been collecting them for years.
Every time we get a deal under contract, we fax and email our list and boom–the deal is gone. It's awesome! Remember, the faster you find a buyer, the faster you get paid.
Here are some sample questions to ask potential buyers (investors):
- What is your name?
- What is your phone number?
- Do you have a preferred area?
- Can you close with cash immediately?
- Can I call you in the future with good deals?
- What is your price range?
- What level of rehabs are you interested in? Find out if they do simple cosmetic changes like updating baths, kitchens, or changing carpet, or if they can handle major jobs such a foundation issues or fire damage.
Here is a example of an exchange with a buyer who responded to your ad:
Okay, (name), this property is located at (address). I would encourage you to go look at it right away. Based on the number of calls I have received so far, it won't last long.
If you don't end up with this particular piece of property, I will call you with the next one, okay?
I need your fax and email, so I can send you information on my next deal.
How many rehabs are you looking to do each year?
Are you interested in rentals?
What are your criteria for rentals?
Great! We'll be in touch!
Building a buyers list is crucial to your success. As we said, it's all about numbers. If you wholesale or rehab fifty properties a year and average $10,000 per deal, how much is that? We'd venture to guess it is more than most of you are making today. Is it possible in the first year? You bet it is. If you'll use our knowledge and your motivation, the money will come.