You want to be in the position that when your first contract is in your hand and you have a property to flip, you have a list of potential buyers to call or email. When you have your list ready, that means your flip (your wholesale deal) will be completed and closed that much faster.

Here are five tips on building that initial list.

1. Run an Ad

Place an ad in the local paper such as "Handyman Special" or "Fixer Uppers." The responses you get will be contractors, rehabbers, investors in search of rental properties, and newbies just getting into the real estate business. Find out what they are looking for, in what areas, and their price range. Be sure to get their email address. Set up a notebook, or an online spreadsheet. This is the birth of your buyers list.

2. REIA Meetings

If you are fortunate enough to have a real estate investors association (REIA) group in your city, attend every meeting you can and get involved. You buyers will be hanging out at these meetings. Hand out business cards and collect business cards. Again, find the contractors who are buying bargain properties and find out what they want. Add them to your list

3. Call Ads

Browse the local want ads and call the "for sale" ads. Watch especially for those that say something like "newly renovated," or "completely remodeled." This could be a contractor looking for properties like the ones you will be flipping. Call and find out.

4. Newbie Investors

Go out of your way to help those who are new in the business - the individuals who are purchasing their first investment properties. If you show a newbie real estate investor how to get a deal closed, you will have made a business ally that will not only be a customer in the future, but will give you great referrals.

5. Hard Money Lenders

Invest your time to establish relationships with a few local hard money lenders. Keep in mind that your buyers don't have to be those with deep pockets and tons of cash on hand. They may need financing during the time they are rehabbing. If you can connect them with your lender friends, you have made a lot of people happy. Soon even your lenders will be sending you leads.

Conclusion

As your list grows, it will be imperative that the list be organized. If you've found that one contractor is looking for high-end properties, don't call him when you have a $10,000 burned out property in a blue-collar neighborhood. Divide your list into categories of what those potential buyers are looking for, and when you deliver what they are looking for, you will become a much sought after wholesale real estate investor.

The more potential buyers you talk to the more you will learn what they are looking for, in which neighborhoods they work, what they are willing to pay and the prices they command on repaired properties. You will also become aware of the trends in the industry which will help you immensely as you build up your own business.

Building your buyers list is necessary, but it can also be a fun part of your business. Many of these contacts will in time become valued friends.