Real Estate Wholesaling Begins with the Buyers List
Are you a dabbler dreamer or a powerful entrepreneur who wants to master wholesaling real estate properties? Building your buyers list should be a high priority.
When you commit to changing your circumstances, you must be like a flower bursting through the concrete sidewalk of circumstances, surging upward through solid obstacles like time limitations and job necessities because you absolutely MUST get to the warming sunlight on the other side of what’s holding you back.
To use another analogy, in my experience those who succeed despite significant obstacles do so because they MUST experience life on the other side of their obstacles in the same way that they MUST breathe.
What about that real estate wholesaling business you wanted to create and grow? You know, the one you’ve read every eBook available online in pursuit of starting but still haven’t done so much as put together a spreadsheet of contacts who have money, buy properties, or may know someone who does both, much less pick up the phone and call those folks to find out what kind of properties they’ll buy so you can line them up.
Are you even building your buyer’s list? If you’re not building this important component of your book of business, in my opinion you’re just not committed to the reality of doing business, but only the idea of it. I’m no longer currently involved in real estate wholesaling, as I found other areas of the business to be less time intensive, more exciting, scalable, and ultimately with better opportunities for larger profits. But as someone who started his career wholesaling houses to make a buck, I despair when I hear from people all the time that they want to start a wholesaling properties business but haven’t yet done a deal. Uh…pick up the phone man!
Put that list together, find them from your own contacts, social networking, websites, bandit signs, ads that say “we buy houses” on the side of the road and in your local newspaper and Penny saver. Database their contact information until you have a couple hundred and then start making calls to find out who is a serious buyer, for what, in what areas, and with what kind of buying power. It doesn’t have to be much more complicated than that. Armed with the information from a few serious buyers-typically as a wholesaler your buyers will be landlords who plan to rent the house or rehabbers who plan to fix it up and resell it-you’re ready to go make money in the middle when you find and tie up those deals.
Make sure when you make your buyer investor calls that you are asking them their criteria, what they’re looking for and where? How they are prepared to buy and when? Ask them for referrals too. You’ll be surprised how many will tell you about their “buddy John” or “boss Sandra” who buys properties too, and get their contact information to add to your database. This is how you set yourself up to be matchmaker for wholesaling.
Are you lining up inventory sources indirectly, through other wholesalers, developers, or what? If so, you can scale that business better than if you have to also in addition to finding buyers find sellers too. If you are doing both, and directly finding motivated sellers with deals, you can do both but remember you can find motivated sellers all day long-what gets you paid are they guys and gals who can write a check for one of those deals and are happy to write one with a few extra digits on it so you can make a small profit too. Focus on finding them, and you’ll be way more than half-way there to success as a real estate wholesaler. This is how you make money from those buyer relationships, by matching what you can find with what they are willing to buy.
If not, that cash infusion you want and need is not likely to come from real estate efforts, because those are the activities that create profits in a wholesale real estate business.