The buyers are out there, it’s just a matter of gathering them and staying in touch. It helps to be able to determine what type of buyer you’re looking for early on. Remember this: you are the person who has something he wants when a buyer calls you; if he’s calling them then he’s trying to sell them, let’s make sure the buyers call him so he stays in the position of power from the start. You must be a real estate heavyweight.
Let’s look at some categories of typical buyers to gain insight into their mindsets and how and when we will market to find them for their real estate buying needs.
o Rehabbers – These are people who are looking to fix up and flip properties for a quick profit.
o Owners: These are people who are looking to buy to rent to others for long-term capital accumulation while generating positive cash flow each month.
o Wholesaler: You will buy or put an option in your contract to hopefully pass the paper on to another buyer who is willing to pay more.
o End Buyers with Leasing Option: These are people who cannot qualify for a loan of their own but want to return to home ownership rather than renting.
o Retail Buyers: These are end-buyers who may be able to obtain a mortgage or have cash and generally purchase the property for their own housing needs.
There are variations of buyers, but the above 4 types are generally considered to be the main targets for 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 wealth, tax deductions, a place to call home, etc. If you ask enough general questions, you’ll quickly discern what type of buyer you have in hand. Once you know that, you can tailor your offers and feature properties that meet what’s important to them.
Buyer: Someone who is ready, willing and qualified! Those who don’t qualify may be perfect tenants, lease option buyers, or owner financing candidates, so qualifying can have different meanings.
Done – Someone who is in the market to buy within 1-45 days, keep in mind that an end-buyer with a retail or lease option typically buys once and is out of the game, homeowners, rehabbers and wholesalers are more likely to buy multiple properties from you over time as they accumulate, sell or flip existing assets. Having active buyer lists 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? Oh! I’m so glad you asked! Let’s start with one of the best methods of all time to kick start building a buyer’s list. In your search for bargain-priced properties to own, it makes sense that you eventually find a great deal, once you have a top offer to offer, turn around and market that property at cost! Yes, there is no benefit for you in this case. Because? Because you are going to advertise that property to every potential property buyer and investor on the planet!
The reason for this is that you will get the most calls and responses when you advertise a flashy offer! Granted, you’ll most likely sell that deal relatively quickly, but you’ll collect information from every potential buyer you call to build your buyers list for future properties you list. If you don’t have your own property to sell, ask someone who does! I can assure you that they will not turn down your offer to advertise your property for them for free! You can negotiate a small fee if you do indeed sell your property, but your main goal is to build your buyers list!
Let me give you an example of a way to collect potential buyers by the dozen hold an auction advertise a solid week in advance so you get the most buyers start with the bandit signs putting about 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 great deal out of the 800 calls we had 300 people show up on the house day again but we’re also going to 80 0 calls.
Here are some ways to advertise to those buyers:
o Bandit Signs
or Craigs List
or Back Cover
GoogleBase
or Post Office
or Zillow
o Pay Per Click Ads
o Local online classifieds
o Media website
or Ruffles
o Newspaper/inserts
or REIA
o Direct mail/post cards
o Start an investor MeetUp group
Or email
Phone
or Fax
or your own website
Use your imagination, the list is limitless, there is a free ebook called Internet Real Estate Yellow Pages that you can download for free on my MagicBullets.com site, grab it and you will find 100 more ideas and places to list your offers. Now go Become a real estate heavyweight!
Dan Autoto :~)