Building a Buyers List-Frustrated

[Bob Maceda]

Hi everyone , I am new to the forum. I am in Raleigh, NC ( new to the area, and learning the market) and making an attempt to get a wholesaling business off the ground. I have everything in place (website, business cards, contracts, ordering bandit signs today, etc.)

The only thing that I do not have is potential buyers, this is somewhat holding me back, I dont want to get a property under contract and not be able to move it. So far I have attended a rei meeting and a couple of foreclosure auctions to network and meet potential cash buyers.

I have met a grand total of two people that seem like they would be able to perform. To be honest the monthly rei meeting seemed like amateur hour, deals announced weren't very attractive and it seemed like a majority of the people I talked to owned a property or two, no major rehabbers or cash buyers. Is this how it is everywhere? Maybe 10-15 guys in the city that are really capable of paying cash?

As of right now my plan is to 1.) run an ad in the paper and all over the internet advertising a 3/2 fixer upper and tell the callers that it sold and get their info, 2.) drive around and find recent rehabs (there are a ton in Raleigh) find the owners contact info on the assessors website and then email or send them a letter introducing myself and ask to add them to my investor list, ( is this invasive or most guys wont care?) 3.) just keep plugging away at meetings (there are a few meetup groups that are related to rei).

Anyone have any ideas or suggestions? Thanks

[Ryan Webber]

If you are wholesaling you need cash or cash equivalent buyers (hard money or commercial loans/lines of credit).

Trying to wholesale to conventional buyers is a nightmare, and doesn't work most of the time. Most conventional lenders will not accept assignments. Assignments have nothing to do with seasoning issues, but double closings will have chain of title issues and reselling within 90 days will cause seasoning issues with over 90% of conventional lenders.

I agree with Slim. Don't stop, don't quit, keep going. This business is not for the faint of heart. You aren't going to put all the pieces together in a week or two. It will take some time to develop your buyers list. Finding serious investors is like finding good deals. You will have to spend hours upon hours digging through the hay to find just one needle. Whether that's for deals or for investors its just the same.

I'm personally more partial to a new wholesaler finding a deal before they start looking for investors to buy. Yes, I think you should start building your list before you get a deal, but really at least 80% of your energy needs to be on finding deals. If you find a deal, and I mean a REAL deal, then you will have no problem selling it. You will have cash investors coming out of the woodwork to buy it.

There are two basic concepts to wholesaling. Finding deals and building your network, but the fuel for the whole machine is the deal. The deal is the key. Focus on finding deals. If you get good at finding good deals building your list will be a piece of cake because real investors will search you out.