When you are in the business of rehabbing or wholesaling real estate a buyer's list can be your best friend. There are many ways to go about obtaining a buyer's list such as buying one from a host of companies. However, nothing can compare to building your own list for many different reasons.
When you build your own buyer's list, you know for sure who the people are on your list. In other words, you are not simply buying names, having no real idea if the people listed are actually interested in purchasing wholesale or rehab real estate. For that matter, you have no idea if these people are actually interested in purchasing real estate from your area. Buying a list is never a good idea as a whole.
Building your own list gives you many advantages. The people listed on your buyers list have actually given you their information personally. They have expressed an interest in buying real estate from you and what is more, they have expressed an interest in buying real estate in the area in which you offer it.
Another advantage of a buyer's list is that it allows you to target specific areas of interest. You may have more investors looking to buy real estate on one side of town than they are on the other. Buy building a buyer's list you have the opportunity to get a good grasp on what your buyers want and where they want it, allowing you to make the appropriate decisions on your investment. With a buyer's list you have a better chance at selling and getting a return profit. The real estate sells quickly, in most cases, and the profit starts rolling in, if you have done your homework, research, and built a reliable buyer's list.
With that being said, here are some steps you can take to build your own buyer's list, without even having any property on hand at the start.
Advertisement – Your local newspaper is the best place to start. The key is to make it realistic and eye catching. You have to stand out, but you also want the prescreening of potential buyer's to take place through the advertisement. In other words, you want to include the types of property you intend to sell, good credit required, and serious buyer's only. You could also stretch things a little and say you currently have 16 or 17 properties. This is ok, because you are building your list.
Provide your telephone number and maybe even an incentive for their purchase, such as a free product or something similar. Be sure to identify that you are advertising to investors.
Clubs - Another great way to build your buyers list is to join real estate investment clubs. These clubs hold meetings on a monthly basis and generally are brimming with interested, potential investors. One thing you need to take note of is that you must cater to your potential buyers. Many people buy property with hopes of selling it, then look for a buyer. In other words, they are looking for a buyer for that property. It should be the other way around, you should have a buyer, then find the property based on what they are looking for.
Keep It Fresh – You want to make sure that your buyer's list holds only fresh names, telephone numbers, and other information. You want to have variety as well, keep names of investors on the list that are interested in various types of properties, this will help ensure that you always have options.
Make sure you take names off the list, as they are no longer interested, leave the investing business, or move out of your area. This is an important aspect of your buyer's list, if you do not update it, you may find that you run out of investors or buyers and create unhappy people at the same time, which could hurt your business.
Information – The information contained on your buyers list should include the following:
• Buyer's Name• Buyer's Telephone Number• Buyer's Fax Number• Buyer's Email Address• Buyer's Area of Preference• Cash Closing (yes or no)• Permission to contact with future deals• Permission to fax or email• Price Range for Property• Types of Property PreferencesOnce you have this information, it is important to keep it in a safe spot, where you can easily access it, such as Excel or Microsoft Word. Keeping everything at hand and organized is the best way to maximize your use of the buyer's list. Having it stored digitally in a database will help you keep the buyer's list fresh and new. You can easily add and remove names as necessary, giving you the most up-to-date buyer's list possible.
Success in commercial real estate selling is dependent upon buyers and interested buyers at that. Your buyer's list will help you build a successful empire and keep the profits rolling in at the same time.
About the Author:
Tony Seruga, Yolanda Seruga and Yolanda Bishop of http://www.maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.
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