How to Build a Qualified Wholesale Buyers List
As a real estate investor, your wholesale buyers list adds value to your business. It’s an essential part of closing deals quickly and reliably. However, building your list requires an understanding of what the list is and what it’s used for. Also, for different real estate strategies and segments, it works well to have specific lists to find buyers within those segments.
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Understanding Wholesale Real Estate Investments
Wholesale real estate investing is a real estate investment strategy that allows investors to make money from an investment without taking ownership of a property. It works when an investor enters a contract with a seller under the intent of transferring the buyer’s contract to a different buyer.
When the investor finds the buyer, the contract transfers to that buyer who will then purchase the property. The investor takes a fee for connecting the seller and the buyer. However, at no point does the investor take possession of the title. The role of the investor is simply to find a buyer and transfer the contract.
Wholesale real estate investment is a great way for investors to make money quickly. However, for wholesale real estate to work, the investor must have a qualified buyers list.
What Does a “Qualified” Buyers List Mean?
The dictionary defines the word qualified as “having complied with the specific requirements or precedent conditions”. Therefore, a qualified buyers list is a list that meets a set of specific requirements.
In this case, a qualified wholesale buyers list contains contacts that meet your needs for wholesale real estate deals. Your list may contain both buyers and sellers interested in wholesale transactions.
The idea of qualifying buyers or sellers takes the list to a more detailed level. By qualifying your list, you spend less time on investors that aren’t the right fit for specific deals. A qualified list means those contacts have expressed interest in selling or buying via the wholesale option and have actual access to funds for the deal.
As you gain more experience as a real estate investor, your buyers list should become more specific. This equips you to narrow down your focus for each deal to get the quickest and best results.
How to Build a Buyers List
You cannot have a successful real estate investing business without a buyers list. It is a critical element of your investment business. First, you must understand what information to include in your list.
- First and Last Name
- Email Address
- Phone Number
- Mailing Address
- Buying Criteria
- Funding Source
- Source of Referral
- Past Deals with You
Building an effective buyers list requires patience. Over time, your list will grow. However, to start out, you must actively seek contacts. Start with the people you already know. This means reaching out to your existing network of associates, friends and even family. Inform them about your business and inquire about their interest in real estate investments.
Advertisements and social media are other great options to build a buyers list. Diversify your approach by combining traditional methods, like mailing postcards to a purchased list with online strategies like listings on Craigslist.
Network groups, both virtual and local, offer good options to grow your buyers list. Follow other investors on social media and reach out to those that feel like a good fit for connection. Overall, the goal is to identify buyers that have the interest and money to invest in your deal.
Once you have a contact, screen the buyer to ensure they are a good fit for your list. Having a large list of contacts that will never actually invest isn’t helpful. A solid list produces results. Do the work to ensure those contacts on your list have interest in wholesale real estate transactions.
After you’ve done the work to create your list, remember to stay in touch with your contacts. Reach out to share your knowledge and experiences. Also, check in periodically to keep your list relevant with current information. When done well, your buyers list is an invaluable tool for real estate investment success.
Why Categorization of Your Buyers List Matters
Most of the information on the buyers list is straight forward, but for a list specific to wholesaling, focus on the Buying Criteria. This is the category that defines the types of deals they want. This may have several defined categories and subcategories.
Buying Criteria Examples:
- Single-family homes
- Multifamily housing
- Commercial properties
- Fix and flip
- Long-term rentals
- Purchase price ranges
The range of options for buying criteria will vary greatly. However, for your list to work effectively, you must create defined categories so that you can identify buyers within your list for each type of deal.
As you learn more about each contact, add notes to your list. This helps identify the best buyers for each new investment opportunity. Categorization creates efficiency and maximizes your business operations.
Start Building Your Wholesale Buyers List
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