What is the best way to build a buyers list before you actually have a property?

[Matthew Green]

i may have a home under contract soon and i'd to know how to effectively get buyers for this property. I.e build a buyers list!

[Nick J.]

search here on BP. This has got the be the #1 question ever asked and there is an immense amount of coverage of this topic

top right of the page is the search field

[Matthew Green]

okay thanks. nice avatar haha

[Chris Clothier]

Matthew -

The good thing about your question is that you are looking to build your business the right way. We always grow our business by finding the buyers first and developing our inventory based on what the buyers tell us they want. That's our key to consistently closing 20-25 deals per month.

[Joshua Dorkin]

Matthew -
You can start by making a post on our New "Promote Your Buyer's List Forum"

[Patrick Karbon]

Hi Matthew,

Try the old fashioned Sunday Newspaper. Look for Rental ads by landlords within a close radius of your subject property. Call and ask if they're looking to buy property in the same area. The trick is to quickly tell them that you may have a property available for "X" $'s in the same area.
ex "Hello Mr. Landlord- I saw your ad in the sunday paper and wanted to know if you'd be interested in a 3 bed near there for *price*. This usually cut's the conversation down to whether or not their interested pretty quickly.

Good luck!

Patrick Karbon

[Andrew Massaro]

Put out 50 yellow bandit signs advertising a fake property. And when you return their call, explain that it's been sold. Then, take 10 min's to find out about him and his business. Here's an ex:

Cash Buyers Only!
$.30 on the dollar!
3/2 1250 sq ft block
(XXX) XXX-XXXX

Who is not going to call when there's a deal at $.30 on the dollar available? And who is not going to believe it's already been sold...

[Greg G.]

If you start by lying to build your buyers list, where's it end? Not a great way to build a business that'll last, imo.

Greg

[Andrew Massaro]

OMG.

We're not trying to scam anyone out of cash. We're just trying to locate some cash buyers. Really, G?

[Greg G.]

A, the end definately doesn't justify the means. I've heard it said that how you do anything is how you do everything. I tend to agree It's a slippery slope.

To get the thread back on topic;

Attend local meetings put on by self-directed IRA companies like Entrust, etc... There's generally an opportunity to give a 30 second commercial about your deal and many are there to put funds to work. Be sure to bring a flyer.

Greg

[Andrew Massaro]

I see absolutely nothing morally or ethically wrong with my strategy... and I advise all of my students to do it.

Cuz it works...

[Terry Royce]

I frequently put out signs that say
"Cheap Shell
5k
555-5555

This gets the phone ringing, and I usually try to keep one or two "junker" properties around so I have something 5k.

[Delondon Dear]

There are a few ways that you can do this. You can post ads on all of the major free online classifieds and watch the calls start to flow in. Just make sure you gather the information needed so that when you do get a property under contract you can call them and you will have all of their contact details.

[Jason O.]

When I advertise on a free site like Craigslist to build my buyer's list, what legal regulations do I look out for?
I'm in NJ.

[Mike D.]

Great question J O. Im in NYC and Im also building up my buyers list just want to know what the legal ramifications maybe if I advertise on sites like craigslist or backpage?

[John Newland]

How about driving the surrounding area in a reasonable radius and look for "for rent" signs as well as houses that look like they are under going rehab (ask the crew how to get in touch with the owner.) If you have a good relationship with a real estate agent/broker, you can have them search the area for listings that have sold with cash terms. Sure, you may have to flip him or the buyer's agent a commission, but you've sold the property and should have made a tidy wholesale profit.

[Kim Hawkinson]

OK, so when I call the ads that are listing homes for sale, it normally says downing the bottom that "this person can not be contacted for other soliciting purposes" or something along those lines. Isn't that what I'm doing when I call them asking if they want to buy other cheap properties?

I totally agree this is a GREAT way to find buyers. I Just want to keep everything within the legal lines. Thanks for all the wonderful advice everybody.

Kim

[Tim Stevens]

I actually prefer to find the local Wholesalers, find out what they have available, get a non-exclusive option on their best deal and then market that to my buyers list.
You can find the local Wholesalers through Craigslist, bandit signs, newspapers, etc.
No sense in marketing something that won't provide instant gratification :D

[Chris Martin]

Originally posted by Andrew Massaro:

Who is not going to call when there's a deal at $.30 on the dollar available? And who is not going to believe it's already been sold...

Andrew, and what serious buyer isn't going to inquire about the deal? Personally I think to lie is an awful strategy. I only had this happen once to me, and I knew very quickly the wholesaler's deal was a joke. If your only goal is to get a call at any cost, then at least tell a lie the buyer can't verify (or question) in 10 seconds.

Tim, I guess if you can get buyers to (over) pay your fee, more power to you. Better to be at the top of the daisy chain. As a buyer not a wholesaler, how are you going to know when your buyer is on both lists? This happened to me about 6 months ago... same property, different prices by about $4K. Hmm? Guess who I am going to deal with?

The goal of building a buyers list is ideally to get repeat buyers moving your properties. I don't see lies/deception and daisy chaining as ideal strategies.

[Lee Foxworth]

I do not understand the dilema. My signs stay up for along time after my target property has sold. Should I go collect all my signs because of an ethical dilema that someone may call me on a previously sold house?
If I am buying I want to know if someone has other proerties. It saves me much time and effort and I have to look at alot of props to find a good one.
Put signs out, ads online and print to gather your list. Who knows what the situation is for the person on the other line.

[Chris Martin]

Lee, a big difference is that you had a property to sell. Your case is different than advertising a phantom property with the only intent to build a list. As a cash buyer I am not going to spend (invest? waste?) 10 minutes of my time describing myself and my business to someone who just lied to me about a phantom deal. Does the wholesaler then exaggerate about ARV to pique my interest? Is that how they get to .30 on the dollar? When/where is it now Ok for a wholesaler to exaggerate and/or lie? Everywhere? I contend that serious buyers will eventually find out the real story and not appreciate chasing phantom deals.

I prefer to work with individuals who don't have to deceive to build their business. To each his own.

Back on topic: John Newland had a good idea: "If you have a good relationship with a real estate agent/broker, you can have them search the area for listings that have sold with cash terms." Not bad, but this will identify only MLS listed property sales, not private sales (e.g. wholesale deals) and not FSBO quick sales.

I'll add that I can find dozens of cash buyers each week at the courthouse. We are serious buyers who close quick and with cash. Look at the paperwork at the clerk of court desk and write down the bid winners as well as all other bidders. In most state/counties, their contact information is right there on the form. Some bidders use proxies (e.g. an attorney) but the bottom line is you will have a list of closers not posers building lists. Keep track of what they bid on so you know what they are looking for. My 2 cents.

[Steve Babiak]

Many methods for building a list of buyers, collected for your convenience, is right here:
http://www.biggerpockets.com/forums/93/topics/54108-buyer-s-list-how-to-

[Jack Coquerel]

You really don't need to advertise a fake property. You can advertise a fellow investor's property. One effective way we've used (and still using) is our "Columbo Technique" that I named after the detective inspector Columbo.
We follow properties we've made offers on but didn't get and end up talking to the investor buyer.
By networking with that investor you can open many doors. He can even help you sell your first property. Time consumming but very effective.

[Scotty Hamill]

Hey Chris, I will be going to the courthouse alot and getting my leads. I was wondering how you find buyers there and how you know they are buyers? You said look at the paperwork at the clerk of court desk and write down the bid winners as well as all other bidders, their contact information is right there on the form. I'm a new wholesaler looking for buyers. Can you explain it more or message me? I just dont feel right sending out phantom ads on properties I dont have. I'm new and I want people to know I'm here to help them sell, not mislead them. As far as Lee goes, I dont see anything wrong in leaving the signs up because you actually had the house and sold it. So you get more advertising.

[Jason Tropf]

Hi Mathew,
I used to be a wholesaler and I started out by placing ghost ads for buyers and mailing letters for sellers. You'll get calls by the dozens by all the currently active retail buyers as well as the investors immediately. Depending on the ad, you will know who the players in your area are immediately and what real families are looking for a new home, what rehabbers are shopping for new rentals and shortly afterward, who's full of it. This tactic is truly all about the follow up. You can't stay non-existent to them. Regular hot deals should be presented. Once you have them.
Your ads can be by the dozens, use bandit signs, craigslist, postlets.com, and sell actual listings that are great deals, a no-brainer, must-see price and beautiful home. A true 'ghost ad' will be advertising a property that is "no longer available" you tell them, they go fast as this price, but if you would like to be on our email list, I will email you when the next hot deal comes along. If you would like to be on our VIP list to get the property notice 48 hours before everyone else, just send me a pre-approval letter or proof of funds and you will be the first to receive the notice of our next must-sell opportunity. If you're like me, I like to stay honest, I actually hate lying I can't keep it up so I just go out and pick the hottest deals that really exist and send buyers there, 95% chance they will not make an offer but you have the buyer now in your database and they feel that you are tried and true, you came through, you weren't just a sales pitch. That works for me. I made a good living for 5 years doing it.
My list was several thousand deep and I eventually had a group, our combined lists were several hundred thousand deep and we shared lists for shared profits at closings, it's a great living.
Good luck!

[Chris Martin]

Scotty, I do not know OK state laws, but it appears OK is a trustee state and appears the process may be similar to NC. Look for the equivalent files in your courthouse. For "current" sales, look for:

"Report Of Foreclosure Sale/Resale" http://www.nccourts.org/forms/Documents/671.pdf
"Notice Of Upset Bid Notice To Trustee Or Mortagee" http://www.nccourts.org/forms/Documents/452.pdf

Some courthouses have these filings in a 3-ring binder for public convenience. They generally have 1 month's worth of documents. If you can't find things, ask the clerk for help... that's what they are there for.

For historic sales, you need the foreclosure proceeding file number. Then pull (or in some counties ask the clerk to pull) the file. The forms, along with the "Final Report" accounting are in the file.