Growing a buyers list will ensure that your inventory moves quickly and profitably.
Real estate is not just about location, location, location; like most capitalist ventures, it is about moving inventory as quickly and efficiently as possible, while maintaining profit margins. Without anyone to purchase products or services, companies would crumble quicker than a sand castle built too close to the sea. For this reason, maintaining and growing a buyers list is a simple, but integral part of any real estate investment business. A buyers list is nothing more than a list of contacts, with whom you have built rapport, who are known to be actively seeking and ready to purchase properties. Not only does inventory move faster, with the help of a buyers list, but it also tends to move at higher profit levels, because buyers who are active are motivated. Here are just a few ways to build a fuller, stronger, buyers list.
Bandit Signs
“Bandit Signs” is the term for those handwritten signs that appear on many telephone poles announcing “I buy houses” and the like. Behind those signs are real people who are actively pursuing the purchasing of properties and have the cash to do it. A quick way to add a buyer to your list is to look for these signs and call the number. Let the buyer know that you have property for sale and ask about their buying criteria to see if there’s a match. If you lack matching inventory at the time of contact, ask a colleague if they have an appropriate property and if you can market it on their behalf. This will accomplish the most important aspect of growing a buyers list, establishing contact and rapport.
MLS Cash Sales
Access the MLS and do a search for ‘cash sales’ in the area in which your inventory lies. Just as real estate is local, so are the buyers of that real estate. Once you locate a recent cash sale (generally within two weeks of purchase), travel to the site. Chances are that your cash buyer is a flipper and you will find a work crew on site, introduce yourself and explain who you are and that you’d like to get in contact with the owner of the property. Make a note of the property’s features so that you can find a comparable property of yours to show them. Once you have a cash buyer on the hook, you can quickly turn over properties in a given neighborhood as a tandem act.
Call the Landlord
Effective and profitable land-lording is simple math; the more units rented, the more cash flows in. To add a few landlords to your buyers list, call “For Rent” signs in the neighborhoods where you have inventory. Again, introduce yourself, ask what sort of properties they are looking for, and see if you have or can find one to market to them. Making finding and purchasing units an easy process for a landlord almost guarantees repeat business from a motivated buyer and is a great way to grow your buyers list.
Meetup
Meetup is an online gathering of groups with specific interests. Inside the website you can search for groups local to you which are interested in real estate. The benefits of these groups is two-fold. First, regardless of the group’s specific aims, you have the opportunity to network with local real estate enthusiasts, buyers, sellers, and investors. Networking is a great way to build your contact list and can lead you to names which can be added to your buyers list. Secondly, to directly build your buyers list, look for groups by searching the keywords “cash buyers”, “flippers”, and “real estate investors”. Next, attend one of their IRL meetups. Come prepared with a thorough knowledge of your inventory and pitches for the properties which buyers such as these are most likely to be interested in.
Craigslist
Craigslist is a non-labor-intensive way to build your buyers list in a way which encompasses, to some degree, all of the aforementioned methods. Looking at the various sub-categories, you can find the digital equivalent of bandit ads from people looking to buy now, there are postings offering rentals whose landlords you can contact, and there are forums and groups which meet digitally and in-person to network and discuss various aspects of real estate, just as with Meetup. If you’re growing a buyers list, Craigslist is a quick and simple way to start.
Real estate is a business of transactions and without buyers, you can’t have transactions. Maintaining and growing a buyers list is integral to the process of matching properties to buyers quickly and profitably. We’ve discussed how to go about contacting buyers, but it is also important to mention that the information you gather should not just be a name, phone number, and email address, but also a clear understanding of the buyers wants and needs in regard to the properties they are looking to buy. The better matchmaker you can be, the happier they will be with your services and the more likely that the next time they need a property, you will be the one they call.
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Image courtesy Flickr and Severin Sadjina
