If you are planning on a running Wholesale real estate business or Flipping Properties for profit, then one of the most important things for you becomes the buyers' list. The buyers' list is basically a list of companies or individuals who are interested in buying homes.
Your intention here is to buy homes at cheaper prices and then sell them off to interested parties. However, for that, you need to know who these parties are that are looking for properties to buy. In short, you need the “Buyers' List”.
All real estate businesspeople keep a ready reckoner list of buyers. This could be maintained in a diary in their office or in a file where they actually retain forms from people who have showed interest in buying properties or it could be simple spreadsheet on their computer.
Nowadays, there are several software applications that help real estate businesspeople to build these buyers' list easily. Whatever be the manner of building the list, it is the raw material that is tapped into when these entrepreneurs stumble upon a property to sell for a profit.
Importance of Buyers List
Why does building the buyers' list become important? As a Wholesaler, the most obvious reason is that you need to have someplace to look for your buyers. This list is that place. You can classify the entries on this list according to various descriptive categories of your own, such as the A-list parties who have ready money to buy properties they like, the B-list parties who are eligible for loans but don't have the money with them yet, the C-list parties who have a good shot to become eligible for loans but haven't made their applications yet and the D-list parties who cannot raise the money to buy your properties and hence can be ignored.
Making such categories helps you in finding the exact people who might become the eventual buyers of your property. Without wasting much time, you can directly zero in on the people who may be the best prospects for your real estate business.
Now, think of the situation in which you are working without a list. This becomes totally unsystematic and random. You don't have a list. So, you have to search for suitable buyers every time you get a property on your hands. When you do that, you are wasting time, and since you don't have any best prospects sorted out already, you might end up selling your property to a weak buyer for a lower price than you would have got had you tapped into a systematically categorized list.
Thus, it is not wrong to say that the most earnest real estate business people are those who maintain a proper list of willing prospects who may buy their properties and then work accordingly.
Having a ready buyers' list also makes you more sincere about your wholesaling business. It reduces your effort when you have properties to sell and helps you get a better price. You may further simplify matters by classifying people according to their purpose in buying properties-those who are looking to live in it, those who are looking to resell, etc.
Such information is vital for you when you are planning to rise above the competition in your Wholesale or Flipping real estate business and get the winning edge over your competitors.