Developing Buyers List- Suggestions?

Question

I'm working in the Bay Area, specifically San Jose California, building a wholesaling business. My current challenge is developing my cash buyers list. In order to be able to offer my clients who are selling their homes expedient close, I need to expand my list of cash buyers, waiting by to take deals as they crop up (this is assuming I do my part by locking up those deals at .70 on the dollar).

In the past it's been a shame to find a killer deal and realize that my investors have their hands full. Does anyone have any suggestions on how to take your buyers list from roughly 10 to roughly 100 in a short period of time. I'm not really concerned whether the buyers are flipping, buy and hold or wholesaling themselves. All tips/tricks are welcome.

Thanks in advance.

Eric

Bill Mitchell · Answer

Strongly disagree. In CA you might have to buy at 80% ARV less repairs, just ask Tim Gordon

There are TONS of areas where I have sold good fix and flip deals at 75% ARV for the end buyer. The % you need to be at varies by the state you live in, the local market, and whats going on in that subdivision, and the ARV of the house.

Lamar Cannon · Answer

@Eric  Kennedy  Here is what I would do:  Drive around an area where there is a ton of action (flips & cash transactions).   Then stop at every house that looks like it is being flipped or that has 40 ft dumpster outside.  Ask the contractors who owns the house. The investor/buyer might even be on site which is a huge plus!  If they investor is not there, get his/her contact info from one of the contractors and call.  They will be eager to jump on your buyers list.  I like this strategy because it is a great way to create a dense buyers list of people who are actually doing deals.

Tim G. · Answer

On one hand I do like people giving this poor advice as it keeps me getting deals from all the poor misinformed wholesalers. But... I like a level playing field and have shown real examples in the market I operate in where a wholesaler here lost $20,000 by following this exact advice.

I don't tell people the numbers to use to buy a deal in Texas because I don't know that market.

The 70% rule in California will cost you deals, because I'll buy them at 75% and wholesale them at 82%.

George Margareti · Answer

I was born in Willow Glen, San Jose and know the Bay Area like my hand - If you get any wholesale deals my Chinese buyers also from the Bay Area (I am direct with them) will take them all day long! Put me on your list to buy .

Eric Kennedy · Answer

Lamar Cannon That's great advice. Thank you.

Leng Thao · Answer

70 cents on the dollar or 80 cents on the dollar, it all depends on the market and/or location. 80 cents on the dollar may yield a potential profit margin in the Bay area worth taking. In contrast, 80 cents on the dollar in a market bearing 80K home prices, most will pass if not all. It's way too thin and risk is not worth it. Just my thoughts after learning from my own challenges. 
I hear CL is great for leads, better yet, it's free.

Eric Kennedy · Answer

@Dave Payerchin Thanks for that tip. That is one avenue I have not used. Does your contact in Fresno invest in the South Bay Area market? I will keep you posted on deals as they pop up. Thanks much.

Dave Payerchin · Answer

Don't underestimate the power of Linkedin.  I have a strong buyer in the Fresno area.  Message me if you think we could create alignment.

Tim G. · Answer

Southern California.

There is a mindset among many where they are reviewing wholesale deals as if they are the buyer. That clouds their judgement and they miss the deal.

Some of the best in the business are offering advice in markets they are not actively wholesaling in or doing any business in.

Always take a good look at who is offering the advice and are they an expert in that field. I for one am terrible at rehabbing and a sub par landlord at best. I chose not to offer much advice in those fields as I am still a student. But wholesaling, well that is my passion.

Study your market, know it better than anyone. You'll see the trends I am speaking of.

Eric Kennedy · Answer

@Tim G. You bring up a very interesting point. Thanks for sharing. I've lost deals holding out of 70%. Good to know that people are taking them off your hands at 82%. Where do you operate?

Developing Buyers List- Suggestions?

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