Howdy folks! Today we are answering another great question from one of our fellow readers. Bill from Maryland, Virginia asks:
“Is building a cash buyer’s list really important?”
I’m thinking that when you ask this question, Bill, you are actually asking whether you should focus more on looking for sellers or building a cash buyer’s list…
To Find Buyers or Sellers First, hmm…
Let’s say you’re new in the business, and you had a choice between focusing you’re time on finding sellers or finding buyers.
I would always suggest that you find sellers first, otherwise you don’t have anything to sell to the buyers.
Good properties sell themselves. If you have a property that’s worth $100K, and you get it under contract for $50K, I guarantee that if you posted that on Craigslist, you’d get some buyers coming out of the woodwork saying, “Yeah, I’ll buy that.”
You didn’t even need a buyer’s list. You can just post on Craigslist. Or if you had called around to a bunch of local real estate agents and said:
“Hey, I’ve got this property under contract for $50K, I think it’s worth $100K. If you bring me a buyer for $63K, I will pay you $2K or $3K for doing it.”
Then you net $60K and pay them the $3K. I bet an agent knows some investor in the local area to buy that property from you. Or, if you went to the local REIA meeting and you held up your contract and said,
“Look, I’m looking to assign this contract. It’s worth $100K, I’m looking to assign it for $63K or $62, or $60K.”
I guarantee that property would sell itself without a buyer’s list.
Building a Buyer’s List Is Important Though
If you plan on being a professional wholesaler, then I think it’s important for you to build your buyer’s list. But I don’t think it’s the most important thing in the world to focus on right out of the gate.
I say over and over again how important marketing is when it comes to investing. You have to keep the leads coming in or you don’t have a business. I always recommend that new investors should focus on 3 marketing strategies:
- Bandit Signs
- Direct Mail
- YouTube Commercials
If you can just focus on those 3 things, the rest will build itself – including your cash buyer’s list.
Once you get your marketing going smoothly, and you have the hang of things, then you can start to focus on building a bigger cash buyers list.
Just make sure you never stop your marketing flow.
So many investors can’t multi-task focusing on their buyer’s list and marketing at the same time, so when they start concentrating on their buyer’s list they drop the ball on marketing.
I can’t tell you how important it is not to make this mistake. Never stop marketing.
Keep it real
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