Power Up Your Sales with a Strong Buyers List
Wednesday, March 17th, 2010 | Uncategorized
Building a reliable, workable list of potential buyers for your properties is one of the smartest things a real estate investor can do. Failing to have that list can be a costly mistake – one that can eat into your bottom line profits. Finding buyers for retail properties is most often done through realtors, but when it comes to your rehab or wholesale properties, you need a different group of buyers. In these cases, your profit will not be as high as with a retail property (via short sale), but you will still walk away with cash in your pocket.
Where is the best place to find buyers? There are several options to consider:
- REI Clubs – Joining your local Real Estate Investing Club can be a great way to build your buyers list through networking. In these clubs you’ll meet other investors, brokers, realtors, landlords, and more. Knowing someone who knows someone might just get that next deal closed.
- Classified Ads – Placing a classified ad in a newspaper, or on a site such as Craigslist, stating that you are liquidating a portfolio of properties and need to sell fast can be another way to find buyers. While this can work, it also raises a flag that you need money fast and have few alternatives, so you are no longer in control of your business – the buyer is. Not the ideal scenario because your profits will be compromised.
- Business Management System – The absolute best way to find buyers is through a business management system called Realeflow. Realeflow’s Open Road software efficiently matches buyers with available properties by allowing you to create a database for groups of buyers. With the click of a button, those buyers can be automatically notified about an available property in your system. You can also connect with other Open Road users through a “Power Matching” component, drastically expanding your reach.
So who are the best types of buyers to target for your rehab or wholesale properties? Being able to identify a variety of buyers will give you the most exit strategies from which to choose:
The Rehabber – This type of buyer likes to buy low, and can usually close fast. They’re a good group to use initially to build your business. Since they buy low, it means less profit for you, so don’t rely solely on them for sales.
Lease Option Buyer – Due to bad credit, this group will put some money down, then rent from you for 1-3 years while their credit is being restored. That makes you their landlord for that time period. They will take care of the property, however, since their long-term goal is to purchase it from you at the end of their lease.
The Landlord – These buyers are looking to build their real estate portfolio. They will pay more because they are going to rent the property, using the rent money to recoup their investment.
The Retail Buyer – This group will give you your biggest profits. They want the property to live in, so are willing to pay more to get it, depending on the condition of the home.
Open Road allows you to find just the right buyer for a particular property by doing all the hard work for you, freeing you up from doing phone calls or fax blasts. The ability to match buyers and properties efficiently can dramatically impact your business. Combine that with having a strong system in place, and you can’t lose! Take the first step to building your investing business by registering to become a Real Estate Rebel today.
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