Buyers are out there, it’s just a matter of gathering them and keeping in touch. It helps to be able to determine what type of buyer you are looking for early on. Remember this: you are the person who has something you want when a buyer calls you; If you call them then you are trying to sell them, let’s make sure the buyers call you so that you stay in the position of power from the start. It should be a real estate heavyweight.
Let’s look at some typical buyer categories to gain insight into their thinking and how and when we will market to find them to meet your real estate buying needs.
o Rehabbers – These are people looking to fix and change properties for quick profits.
o Homeowners: these are people looking to buy to rent to others to accumulate long-term shares while generating positive cash flow every month.
o Wholesaler: you will buy or put an option in your contract to hopefully turn the role over to another buyer who is willing to pay more.
o End Buyers with Lease Option: These are people who cannot qualify for a loan of their own, but want to be homeowners rather than renters again.
o Retail Buyers – These are end buyers who can get a mortgage or have cash and generally buy the property for their own housing needs.
There are variations of buyers, but the above 4 types are generally considered the main targets of people who have properties to sell. Understanding each buyer’s mindset helps you market to those buyers’ interests, whether they want quick cash, long-term estate, tax deductions, a place to call home, etc. If you ask enough general questions, you’ll quickly discern what kind of buyer you have on hand. Once you know, you can tailor your offerings and present properties that meet what’s important to them.
Buyer: Someone who is ready, willing and qualified! Those who are not qualified can be perfect renters, buyers of lease options, or candidates for homeowner financing, so qualified can have different meanings.
Done – Someone on the market to buy within 1-45 days, keep in mind that a retail or lease end buyer usually buys once and is out of the game, most likely homeowners, rehabilitators, and Wholesalers buy various properties from you over time as existing assets are accumulated, sold or invested. Having lists of active buyers in different categories who are often ready to buy a property is a very smart way to operate.
Gee, Danno, how do I find these people? Ah! I’m glad you asked! Let’s start with one of the best methods of all time to start building a buyer list. In your search for bargain-priced properties it makes sense that you will eventually find a very good deal, once you have a superior offer to offer, turn around and market that property at cost! Yes, there is no benefit to you with this one. Why? Because you are going to advertise that property to all investors and potential property buyers on the planet!
The reason for this is that you will get the most calls and responses when you advertise a shouting offer! Okay, chances are you’ll sell that deal relatively quickly, but you’ll collect information from every potential buyer that calls to build your buyer’s list for the future properties you’re offering. If you don’t have a property of your own to sell, ask someone who does! I can assure you that your offer to advertise your property for free will not be rejected! You can negotiate a small fee if you do sell your property, but your main goal is to build your buyer list!
Let me give you an example of a way to collect potential buyers by the dozen, run an auction, advertise a solid week in advance to attract the most buyers, start with bandit posters, putting around 100 of them around a 5. square mile area of the property, we just did this and we had 800 calls because it was a lot of those 800 calls that we had 300 people showing up on auction day, of course the house sold but we also added new ones buyers to our buyer list.
Here are some ways to advertise for those buyers:
o Bandit signals
o Back cover
o Pay per click ads
o Local online classifieds
o Media website
o Newspaper / inserts
o Direct mail / postcards
o Start a MeetUp group of investors
or Your own website
Use your imagination, the list is limitless, there is a free e-book called Internet Real Estate Yellow Pages that you can download for free on my MagicBullets.com site, get it and you will find 100 more ideas and places to list your offers. Now become a real estate heavyweight!
Dan Auito: ~)