Wholesalers - Personal Shoppers for Real Estate Cash Buyers!

[Joe J.]

As we get up in the morning we may reach to turn off the alarm after hitting the snooze alarm twice before we finally decide to take the short walk to grab our toothbrush to start our day. We may get a little orange juice or coffee and then turn on our computer. There are so many great deals that are out there, just clicks away in our computer. The computer can unleash a bundle of deals at any time!

It is up to us to make offers that in most cases create the deals that our buyers are looking for. always remember the important concept that we often create deals by the offers we make!   In most cases these deals can be tastier than a hot toasted english muffin with fresh strawberries and jam!

There are several things we must remember with real estate investing:

ALWAYS HAVE AN EXIT STRATEGY BEFORE MAKING THE OFFER 

As you review each potential deal, you have to have an exit strategy to know what you will do with the deal if you get it at the right price. The exit strategy will have a direct impact on the offer you make.  Often people clients tell me that they found a great deal and they want to buy it.   I say GREAT but what are you going to do with it? They say but it is such a GREAT deal and once again I repeat but what are you going to do with it.  You must always know what you are going to do with it if you get the offer accepted.    

HAVE A ROCK SOLID BUYERS LIST

The most important thing about doing deals is to know what you will do with the property before you get the deal. This is called the exit strategy. So often then not people are chasing the deals rather than the buyers when they want to do wholesaling. If you plan on doing wholesale type of deals, assignments or double closings, you should be chasing the buyer not the deal.  The buyer always comes first and will dictate where you need to locate the deals they crave!  (A bigger craving than a sack of White Castle Hamburgers!)  

CASH BUYERS: THE PLAYERS VS. THE PRETENDERS

The most important characteristic when it comes to buyers is the quality of your buyers rather than quantity. I would rather have 5 to 10 actual cash rock solid buyers for every target market area I have that buy every month than a list of 500 buyers that at times I have to question how many buyers do I really have?

I often refer to these Buyers as the Players vs. the Pretenders. How many people just talk a good game when it comes to buying and how many people are actually doing the buying. Find and work with the players that are in the game and let those pretenders just sit on your buyer's bench.

BUYERS: QUALITY OVER QUANTITY

Why is this important you may ask? If you get a hand full of quality buyers you are ready to start make offers and locking up deals. There comes a point in time where you have to take action. It is like in college some people take so many classes and change majors and take more and more classes. Rather than get into a professional they have become a professional student. As an investor search for quality of your buyers rather than just trying to build up a large quantity of buyers.

BUILD A PROFILE ON EACH OF YOUR BUYERS

This is crystal clear for you that the buyer will tell you:
1. WHAT they want (type of properties)
2. WHERE they want it (location-location-location)
3. HOW MUCH they are willing to pay for it (and know the amount of profit they want)

Think of yourself like a personal shopper for these buyers. They tell you what they want and you find what they are looking for. When you find what they want, where they want it and the price they want it for you are well on your way to your next deal. We all love a little shopping so get out there and see what deals are around the corner. You might need a big shopping bag or a large bus for all those offers you will be making.  Go make it a great day!  Believe and Achieve! :) - Joe Jurek