Without fellow investors, buyers, real estate agents, lenders, etc. to support your endeavors, you’ll never achieve your long-term goals.
Yet, so many investors focus solely on finding deals—without spending the time needed to build strong relationships with trustworthy buyers who they can turn to.
I always advise my wholesaling clients and students that rather than going out, spinning your wheels looking for deals, focus on building a solid list of hyperbuyers first. Creating a one-of-a-kind list that will give you instant access to enthusiastic buyers is one of the smartest things you can do.
What Is a Hyperbuyer?
Well, a hyperbuyer is someone who buys at least 6 properties a year. Basically, 2 properties every other month.
So, how does this add up? Let’s do a little math, shall we?
If you have relationships with 2-4 hyperbuyers who are each buying 6 properties a year, you’re looking at 12-30 transactions a year.
And, side note… I’m actually a hyperbuyer—I do dozens of deals a year. If someone comes to me with a deal, I’m happy to give them a bird dog fee or Realtor commission.
Long story short: You need to find someone like me in your local market.
Maybe you’re also a hyperbuyer… if so, keep reading. This info applies to you as well. How? Because you should be networking and forming connections with other hyperbuyers.
This is how it works… if you connect with 1 or 2 hyperbuyers like me, you can be sourcing for them—and making a sweet acquisition fee. How does $5k sound? Pretty good, right? Well, depending on the property, you could even make up to $20,000.
True Story: A guy brought me a deal, but it wasn’t in an area that I like to do business in. No harm, no foul, because he simply brought the deal to his other hyperbuyer who did like it. And just like that, he sold the deal to that other hyperbuyer… and this guy made a $31K assignment fee. Not too bad!
Why Build a List?
So, why take the time to do this? (And, it’s true… it will take you a decent amount of time to build a solid hyperbuyer list). But, if you use the methods for creating your list that I’m going to share with you, you’ll have a little piece of “gold” that you can reference whenever you have a property to sell.
The list will be unique to you—because you created it. No other investor will have your list.
You don’t need an enormous buyers list. You just need a few legitimate, real buyers who have real cash and who can really close.
Now it’s time to dive into the details…
Top Ways to Build a Hyperbuyers List
In my experience, there are a few surefire ways to build a super-useful hyperbuyers list:
- MLS cash sales – skip trace/look up owners
- Local REIAs
- Bandit signs
- Software, such as FreedomSoft
- Direct mail
- Social media/website
Let’s explore each of these in more detail…
The #1 place to network for cash buyers is foreclosure auctions. These county auctions mostly require all-cash for purchases.
When you’re at the auction, hand out your business card to the active cash buyers you see there. You can also:
- Explain your business
- Ask if they’re looking to buy more properties
- Find out which types of properties they’re interested in (location, # of beds/baths, etc.)
- Ask about their maximum allowable offer (obviously, this will depend on the specific property, but most hyperbuyers have a general range they stick to)
- Offer to take them out to lunch or coffee so you can talk more extensively
Don’t be shy… this isn’t like dating. It’s okay to be rejected—there are a ton of hyperbuyers who would be glad to work with you!
MLS Cash Sales
This one is super simple. Use the MLS (or ask a real estate agent) to print a list of properties that were recently (in the past 6-12 months) bought with cash.
Go to the local auditor/treasurer’s website to find contact info for the buyers. (You could even pay a virtual assistant, college student, etc. to do this cheaply for you.)
Call up those buyers, ask them to explain which types of properties they’re looking for, and go from there. Easy peasy.
Find your local REIA
Again, this is very straightforward. Just Google REIA clubs or meetings in your area. At these meetings, you can ask for buyer referrals, wholesaler referrals and more. Focus on finding buyers first, and then match them with people who have inventory.
Call all the bandit signs in your market! The people who place these signs might be looking for buyers, but they could also be hyperbuyers themselves.
Also, check out digital bandit signs in your area. What do I mean by that?
Google “cheap houses for sale (your city, state).” Usually, this will generate some ads for hyperbuyers at the top or bottom of the page.
Craigslist is also another great place to search for digital bandit signs. (Look for the recently remodeled homes, in particular.)
Another digital route is to use the variety of software that’s available, like Realeflow, FreedomSoft and FindCashBuyersNow.com. These allow you to pay a fee to export lists of cash buyers (it might be a fee paid per month OR per list).
BUT (and this is a BIG “but”) realize that you can have your Realtor pull these lists for you for free! Plus, the info from the MLS will be much more recent.
Sometimes it takes days or even weeks for these software options to update their cash buyer information. All they’re doing is scraping the auditors’ websites for cash sales, and that data isn’t available for another 30, 60 or even 90 days.
So, while these software options aren’t necessarily a bad thing, they might not be your best option.
Direct Mail (Postcards or Letters)
Use this method when you want to market a specific deal. Write a catchy headline like:
“Attention: I’m looking for a serious buyer for an extremely cheap Billings, MT house!”
Also include very detailed info about the property. Then, simply upload your cash buyer list and do a mail merge. It’s as simple as that. Depending on how many pieces you mail out, within a few days or weeks, you should expect to be contacted by at least a handful of interested hyperbuyers.
When posting an ad on Craigslist, don’t include an address or photo of your property. Instead, give enticing details and a phone number or website they can check out for more information.
Also, be sure to use creative headlines that stand out, like:
- ****EXCLUSIVE FIXER UPPER, MUST SELL NOW****
- ****STEAL THIS CHEAP HOUSE FOR SALE****
- _____YOUR NEXT REHAB PROJECT____MUST SELL____
Social Media & Websites
To reach hyperbuyers via social media, make sure you’re actively posting on your business Facebook page.
You should also have a YouTube channel where you can upload walk-through video tours of your properties.
And, create a squeeze page (webpage) that will direct online traffic from your Facebook, YouTube, etc. to a centralized page where they can learn more about you and easily spot your contract info.
Combining All The Methods
I know I just threw a lot of information at you. But—trust me—to create the best, most complete list of hyperbuyers in your market, it’s in your best interests to use as many of those methods as possible.
Next Steps: How to Manage Your Hyperbuyers
Once you’ve built up a satisfying list of hyperbuyers, you’ll be ready to take action. Consider these key steps as you move forward with selling your properties.
Create an Email Database of Buyers
Depending on your number of contacts, various email databases may be the best fit for you.
These are my recommendations:
- Gmail – Good old Gmail is adequate if you only have 100 buyers or less; note to self: always remember to BCC the recipients when sending a mass email via Gmail (or through any personal email account).
- FreedomSoft, Aweber, GetResponse.com – If you have a higher number of contacts (several hundred or even thousands), it’s best to use one of these more advanced systems, so you can track your results and responses easily.
Always Pre-Screen Buyers
Even if your hyperbuyers are experienced investors who you know have been in the biz for awhile, it’s always a good idea to pre-screen your buyers.
You just don’t want to take a chance when it comes to such a large financial transaction.
So, make sure to take these steps:
- Get proof of funds from your buyer (like a pre-approval letter or a bank statement)
- Ask for $1,000-$3,000 earnest money deposit (non-refundable)
- Ask them about recent properties they’ve owned
- Google them (look for instances of fraud, etc.)
Also, this is a side note, but I think it’s very important, relevant info…
What if you can’t find a buyer when you’re wholesaling?
You can simply cancel the contract with the seller or even renegotiate it. It’s also a good practice to ask your buyers why they weren’t interested in the property (usually, it’s price). In some cases, you just have to walk away. It’s no big deal.
After all, you’ll have a list of hyperbuyers who are willing and ready to look at the future properties you find. With all the deals you’ll be doing, a few duds will be nothing in the grand scheme of things.
So, are you pumped and ready to build your list of hyperbuyers? (I hope you’re yelling “yes!” right now.)
Here is your plan of action:
- 1st goal: Go to the foreclosure auction in your county
- 2nd goal: Ask your Realtor to export the recent cash sales in your market from the MLS
- 3rd goal: Call all the bandit signs in your area
- 4th goal: Try your hand at all the remaining free methods I mentioned above, and then start looking into paid methods (if you need to)
Building your hyperbuyer list is really quite simple, if you think about it. But it won’t happen unless you take action now. Check out this exclusive free class to learn even MORE about finding hyperbuyers, flipping houses in 7 days or LESS and my simple 3-step system.