If you want to be successful in the commercial real estate industry, you should take notes on what sets a successful full time investor apart from a part time investor that is barely making it by. Often the defining factor for success as a full time commercial real estate investor is their buyers list. The main goal of investors is to be able to generate a great deal of cash, quickly and consistently. Not only is having a strong buyers list very important, but it also important that you understand what to do once you put a contract on a piece of property so that everything will work out like clockwork. In order to have this kind of smooth success, a buyers list is essential.
A buyers list is important for investors who try to wholesale properties for quick cash as well. If you do not have a strong buyers list when trying to do this, your entire business will probably fail. Flipping properties quickly is of vital importance, and having a great buyers list can help you to do this effectively so you can make a great deal of money quickly.
Property Management Companies - One source for finding buyers is to go to a property management company. You can speak with these people in person and discuss helping them get a great deal for their customers if they are interested in acquiring another property. Not only will this help you to get a buyer, which you need, but it will also help the customer to get the property that they need as well. The property management company also will get another property for them to manage, so this source works out well for all involved.
Classified Ads - Another great source for finding buyers for your buyers list is the classified ads. Many investors fail to use this technique, but it can actually be very effective. You can take out an ad that advertises that you have specials for rehab, and this will work even if you have no properties on hand at the moment. When people call regarding your ad, you can simply let them know that you have no property immediately available, but that you will contact them as soon as you get the next great deal. Be sure to get all of their contact information and you will be able to add them to your buyers list.
Signs - One very simple way to find buyers for your buyers list is to watch for signs that advertise people who purchase property. When you see these signs, write down the numbers and make a quick phone call. Talk to these people and find out what kinds of properties that they are interested in and then get all of their information so you can contact them if you have a property they might be interested in.
Investor Clubs - One of the best places to find buyers to add to your buyers list is at investor clubs. You can go to these meetings, and you will find that there are many people who are at these meetings that will be great buyers to add to your list. Be sure to speak with as many people as possible and get contact information so you can contact them in the future with any deals you may have for them.
Sort the List
Once you have actually been able to develop a buyers list, then it is time to sort out your list. Make different categories based on how quickly the buyer may be able to provide the cash for the sale. If they can pay cash up front quickly, then you may want to put them in your first list. Those who already are pre-qualified for specific loan amounts should probably go in your next list. Others who you believe can get the money in less than a month should probably go in your third list, and the last list will be those that you may not be sure about. Whenever you have a property you want to sell, this organization makes it easy for you to contact the people who have the cash readily available first, and then you can work your way through the other lists until you find a buyer to purchase your property.
Benefits of buyers List
There are a variety of benefits that come with establishing and using a buyers list. First of all you will find that developing your own buyers list will help you to find out where the biggest demand is and where you should look for properties. You want to make sure that you offer properties that are in demand, so if people on your list are consistently looking for properties on the west side of town, then you may want to look there.
Another benefit of developing and using your buyers list is that it will help you make sure that you can quickly sell your properties. Finding a great deal on a property will do you no good at all if you are not able to sell it quickly. You want to find properties that buyers want, and if you are doing your job right you should never have a property on your hands more than a couple weeks. When you are buying your properties you can purchase them with specific buyers in mind, and this will help you make sure that they move quickly.
The last and most obvious benefit of having a buyers list and using it is increased cash flow. You will be able to increase your cash flow with a buyers list and you will be able to keep it running as well. As long as you can keep the properties moving you will be able to keep your cash flow moving as well, and this is the recipe to success.
List Of Commercial Banks
When you build your own buyer's list, you know for sure who the people are on your list. In other words, you are not simply buying names, having no real idea if the people listed are actually interested in purchasing wholesale or rehab real estate. For that matter, you have no idea if these people are actually interested in purchasing real estate from your area. Buying a list is never a good idea as a whole.
Building your own list gives you many advantages. The people listed on your buyers list have actually given you their information personally. They have expressed an interest in buying real estate from you and what is more, they have expressed an interest in buying real estate in the area in which you offer it.
Another advantage of a buyer's list is that it allows you to target specific areas of interest. You may have more investors looking to buy real estate on one side of town than they are on the other. Buy building a buyer's list you have the opportunity to get a good grasp on what your buyers want and where they want it, allowing you to make the appropriate decisions on your investment. With a buyer's list you have a better chance at selling and getting a return profit. The real estate sells quickly, in most cases, and the profit starts rolling in, if you have done your homework, research, and built a reliable buyer's list.
With that being said, here are some steps you can take to build your own buyer's list, without even having any property on hand at the start.
Advertisement ? Your local newspaper is the best place to start. The key is to make it realistic and eye catching. You have to stand out, but you also want the prescreening of potential buyer's to take place through the advertisement. In other words, you want to include the types of property you intend to sell, good credit required, and serious buyer's only. You could also stretch things a little and say you currently have 16 or 17 properties. This is ok, because you are building your list.
Provide your telephone number and maybe even an incentive for their purchase, such as a free product or something similar. Be sure to identify that you are advertising to investors.
Clubs - Another great way to build your buyers list is to join real estate investment clubs. These clubs hold meetings on a monthly basis and generally are brimming with interested, potential investors. One thing you need to take note of is that you must cater to your potential buyers. Many people buy property with hopes of selling it, then look for a buyer. In other words, they are looking for a buyer for that property. It should be the other way around, you should have a buyer, then find the property based on what they are looking for.
Keep It Fresh ? You want to make sure that your buyer's list holds only fresh names, telephone numbers, and other information. You want to have variety as well, keep names of investors on the list that are interested in various types of properties, this will help ensure that you always have options.
Make sure you take names off the list, as they are no longer interested, leave the investing business, or move out of your area. This is an important aspect of your buyer's list, if you do not update it, you may find that you run out of investors or buyers and create unhappy people at the same time, which could hurt your business.
Information ? The information contained on your buyers list should include the following:
? Buyer's Name
? Buyer's Telephone Number
? Buyer's Fax Number
? Buyer's Email Address
? Buyer's Area of Preference
? Cash Closing (yes or no)
? Permission to contact with future deals
? Permission to fax or email
? Price Range for Property
? Types of Property Preferences
Once you have this information, it is important to keep it in a safe spot, where you can easily access it, such as Excel or Microsoft Word. Keeping everything at hand and organized is the best way to maximize your use of the buyer's list. Having it stored digitally in a database will help you keep the buyer's list fresh and new. You can easily add and remove names as necessary, giving you the most up-to-date buyer's list possible.
Success in commercial real estate selling is dependent upon buyers and interested buyers at that. Your buyer's list will help you build a successful empire and keep the profits rolling in at the same time.
