The greatest asset you can have as a wholesaler is a buyers list. When you secure a property under contract, under its market value, your goal is to find a cash buyer fast and close on a profitable deal.
A collection of contacts that you can call upon when you have an opportunity for the taking is the key to your success. Think of it as the “ye old” address book, but better organized, with real estate investors and their requirements. Without it, you may lose wholesaling deals or could get stuck with a wholetail property. With a buyers list, you know exactly what you can offer and what niches to target for a quick turnaround and more money.
What is a Wholesale Buyers List?
A wholesale buyers list is a catalog of cash buyers, real estate investors, opportunists, and entrepreneurs looking for the next deal. It is a directory of everyone you know in the industry who can help you turn a profit on a contract.
Your buyers list should have basic information: first and last name, phone number (office and mobile), and email address.
This list of potential real estate leads must also include details that help you contact the right buyer for the right deal:
- Buying criteria (e.g., single or multifamily, commercial, etc.)
- Type of project (e.g., rehab, prehab, rental, etc.)
- Type of funding (e.g., cash up to 250K, open to seller’s financing, etc.)
- Specifics (e.g., will purchase with non-paying tenants)
Most investors have a predetermined amount of money they’re willing to spend. Your buyers list ensures you align investors with deals that fit their investment criteria, thus increasing efficiency and boosting participation with cash buyers.
How to Build a Wholesale Buyers List?
Wholesale buyers lists are not floating around on the internet. You must build the list yourself.
Be warned: if you wait till you have a property under contract to start building your buyers list, it may end in disaster. Newbies often make this mistake and lose deals and get angry sellers, because they can’t find a buyer fast enough.
You should look at your wholesaling buyers as your clients, and before you have “clients,” you need to convince them to do business with you. The good news is you usually only need one good deal to prove your worth, and most real estate investors are open to giving opportunities to wholesalers they have not done business with yet – especially during a Seller’s Market.
Consider having an acquisition CRM or, at the very least, a spreadsheet to keep track of your list and interactions. There are several methods to finding and building a buyers list. Here are some suggestions:
Social media marketing has grown in popularity in recent years – for both investors and sellers. 78% of Americans have a social media profile. Leverage Facebook and LinkedIn Groups to find local cash buyers. Here’s an example of groups for the state of Texas:
There are many groups in both social platforms, and many are state specific, while some are metro/city specific. You can read through the posts and post the question: “Who is looking for flipping and rental opportunities in the [market] area?”, and see who responds.
Auctions, industry conventions, networking groups, and REIA (Real Estate Investor Association) meetings all boast opportunities to meet potential buyers and industry professionals.
Online Networking Communities and Associations
There are online communities and networks dedicated to facilitating the communication between investors. These have grown tremendously since the beginning of 2020 and are often subscription-based. Here’s a Directory of Real Estate Investment Clubs by BiggerPockets.
Search and Post on Craigslist
Craigslist is still a good place to find potential sellers, in particular FSBO properties. Potential buyers are also looking at these posts and post that they are looking for a house. There will be other wholesaler posts, so make sure to do some research before reaching out.
Here’s an example below, where you see a “we buy houses” post. The next step is to look at the website and social channels to determine if they are wholesalers or flippers. If they flip, then you may have found a cash buyer.
A Strong Website for Sellers AND Buyers
Most wholesalers (with a website) focus on motivated sellers, creating pages that are SEO optimized for keywords and phrases like, “sell your house fast in [market city]” or “sell probate property.” But you need to do the same for your buyer’s list. Have at least one landing page that focuses on key phrases like “buy investment properties in [market area]” and showcases deals you had, but make sure to mark them “sold” and list what’s currently available. Here’s an example from one of our clients:
Make sure you have a form and phone number listed, so investors can easily reach you, and you can differentiate investor from seller inquiries.
Partner with a Real Estate Agent
Realtors often know the market better than you. They also keep their own list of buyers, and if you partner with them, they can help you find new investors and “not yet” listed properties, and take the leads who won’t budge on pricing, so both of you can profit from sales.
Find Zip Codes Where Distress Factors Are High and Cash Deals Are Hot
Discover the secret to better deals: The Buyers Zip Code Method. You focus on the markets where sellers need (not want) to sell and where cash buyers want to purchase. Use data, not your gut, to choose your market.
Cheers to those that tried to do it themselves, getting multiple data source files, cleaning the data, and doing the analysis, and about three days later, came up with results. The good news is that there is a simpler, quicker and completely free way to do it now.
The Hottest Real Estate Investing Markets Finder – this online tool has multiple data sources from the last six months to show you where you can find the best markets, down to the zip codes where cash buyers make the most purchases and distress factors mount for motivated homeowners to sell. Josh Miller explains how the tool works in the video below, and how you can find the best markets in just a few minutes:
Spare Yourself the Work of Finding Motivated Sellers, and Instead Focus on Buyers
Finding and managing buyers, and doing acquisition requires time and effort. If you add lead generation and marketing to your tasks, chances are you don’t have enough hours a day to do it all and do it well.
GoForClose works with real estate investors and wholesalers alike, finding you motivated seller leads who qualify based on your and your buyer’s requirements. Our Inside Sales Associates then schedule appointments and even do warm transfers, if you want. This, then, frees you to focus solely on the acquisition side, talking with motivated sellers, giving offers, getting contracts, and closing deals.
If you have questions or are curious to know more, request a free consultation below.