Large Buyers List is Bad Mojo...Small Buyers List Much Better

[David Darling]

Hello Everyone!

I have been wholesaling deals since 2002 and I have learned that 99% of the time the same 4-6 buyers will buy all your deals as long as they make sense.

This talk about having 30, 40, 50 or more people on your buyers list is actually a BAD thing for the very people you want to buy your deals. The first-come-first-serve attitude will cost your money.

Here's why...

It may seem cool to be able to send out an email blast to 40 people who are on your list, but it often does not produce the best qualified buyer.

Think of it from the buyers point of view... They get an email from you about a property, they call you and find out you have assigned the contract. OK they say to themselves, I missed that one.

So, three months later they have called you on 6 of your emails/deals and they are always taken. You have mentally been thrown in the garbage can because you have not come through for them. One person on your list is happy, and 39 people are unhappy.

That will work against you every time.

Bad Mojo...

What my business evolved into is I have about 6 investors that take all my deals. Of those 6 people,3 of them do 75%.

You build a great relationship with them. They know your deals are moneymakers. They know you are fair. They know they didn't get this one, but they will get one from you soon.

I am to the point that while I am standing in the house and talking to the seller, I know who on my list will get first shot at this deal. 

The people on your short list will know (it is a small community) who is getting your deals so you have to rotate them in a fair way. 

So, it is waaaay better to have your short list than it is to have a gigantic list of buyers.

You will make more money, stay in business longer, and you still keep 30 or so people happy (you, seller, buyer, contractors, property managers, et al).

David D

[Jeremy T.]

@Jade Davis 

The chicken/egg scenario I spoke of is in regard to finding/vetting/building a relationship with a handful of cash buyers in order to market for properties that they would be interested in purchasing.  Thus you are building your "buyers list" in order to provide a much better target for property acquisition and significantly increase the likelihood of finding someone to assign your deal to.  

The buyers list strategy that the OP is denouncing is much different.