Best practices for building a strong network of Buyers?

Question

Understanding what your buyers are looking for is a good way to help find the best leads, but what is the best way to build a strong network of buyers?

Brett Snodgrass · Answer

@Zachary Peacock I do have some Strategies on how to find Cash Buyers. I would do the following:

1. Look on Bigger Pockets and connect with folks that purchase in your area and see what they are looking for and then go shopping.

2. Go to your Local Investor Meetup and find out who is buying, find out what they want, and then go shopping for properties.

3. When you do get a Property under contract, Look up on MLS or other sites all cash buyers who have bought around that property in last 6 months and send them a flyer or a postcard of you, your featured property and about your company.

4. Network with Agents, ETC and find out who are the BIG investors in your area.

You don't need a lot of Buyers to have a decent business.... I would focus on getting to know the heavy hitter buyers who buy quite a bit in your area.  Thanks, hope this helps..

Jason Hirko · Answer

@Zachary Peacock The best way to build a strong network of buyers is to cultivate excellent wholesale deals. People will search you out if they find you have good deals. The one mistake I think a lot of wholesaler's make is worrying about what kind of property their buyers are looking for. Short of geographic area, when a wholesaler asks me what kind of property I'm looking for, I say a good deal. Wholesaling works the opposite way that retail real estate works - you find the house that someone is willing to sell first, not the house that someone is willing to buy

Jason Hirko · Answer

@Zachary Peacock And potentially more importantly, you can never be sued for practicing real estate without a license. However common or uncommon that may be

Joe Hughes · Answer

I have a follow-up question that is somewhat related; how do you handle the objection of the cash buyer wanting an address, and to schedule a viewing of a property.  I have been a RE investor for 4+ years now, primarily doing fix n flips.  I have "dipped my toe" in wholesaling, and I want to really focus some time/effort going forward.  The one obstacle that I have ALWAYS had in the past was when I marketed a contract (property), I would have potential buyers want the address and to schedule a viewing with me before they would talk much further.  And although I would try to focus the conversation on ROI, revenue, and the financials, it also circled back to he/she wanting to walk through the house.  Any suggestions on how to handle this objection with the investor? And the talk track with the home owner ?  ( I was always transparent and honest in stating that I might be attempting to resell the house)

Thanks in advance for the advice!

PS: as an investor who buys houses to flip, I always want to view a property before I buy as well, so I understand this reasoning.

Ian Hooper · Answer

Come to the monthly KREIA meetings. There you'll find a network of buyers under one roof, for 3 hrs. You can introduce yourself to everyone, if you'd like. But don't stop there, because handing out/collecting business cards isn't relationship building.  http://www.kreia.com

For instance, I met two potential cash buyers at a recent commissioner's sale. I know they were cash buyers, because they each bought a house while they were sitting next to me. I introduced myself to them, and got their contact information. At this point, I can't consider these guys part of my network, and they sure as heck don't consider me part of theirs. They don't need me, right now - they are doing fine, without me. I will have to prove to them that I'm valuable to their business for them to add me to their network.

I find best way to build a network is to offer support, service, or value to an already existing network.

Peace,

Ian

Andy Rumple · Answer

Step by step for getting a property under contract:

1. Find a person who wants to sell their house    you do this with networking, mailings,signs, website, etc2. Get the information about the house                br,bath,if tenants how much rent and do they pay on time, asking price3. Determine what you can offer                            depends on neighborhood, condition, rent amounts.  Get good at this.4. Try to get seller at or below this price                negotiate with seller. make the case for your offer price.5. If you succeed at #4 then write it up                  use a purchase contract that works in your state6. Advertise your deal                                                to your buyers list or online sites like craigslist or your reia

The 2 things that take the longest are1. learning the values of houses in your area (#3)2. having that list of good buyers. put everyone on your buyers list you meet at reias, etc    the good buyers will distinguish themselves because they will buy the good deals when    you find them. The great buyers will buy fast, let you make a decent profit, and not be a pain.    Find 3-10 great buyers over time and your wholesaling business will take off.

Roland Paicely · Answer

Zachary,

Sorry about using trade slang.  However, a bandit sign is a sign that is usually located at a busy intersection.  I'm sure that you've seen the 'We Buy Houses' signs posted on poles etc.  Those are Bandit Signs.  The term Sign Police is another industry term used for authorities that are in charge of making sure that your signs are located in a legal place.  A lot of cities state that the signs are illegal in certain areas.  If they see your sign they can ask you to remove it or fine you.  Be sure to know the laws pertaining to Bandit Signs.

Jason Hirko · Answer

@Zachary Peacock I have absolutely no idea. The basic principles will be the same, but the laws between each will have different nuances. Check out your state board of realtors or equivalent and I'm sure they can get you answers. You can't be the first person wanting to get licensed in Kentuckiana!

Zachary Peacock · Answer

@Joe Hughes - Thanks for the detailed explanation -and please, take my advice with a grain of salt as I am new to real estate, but I am very experienced in sales, customer relations, and account management. The key to your troubles is a simple fix, in my opinion. You are helping the sellers solve a problem, and are prepared to inject cash into their hands. Being confident that you offer immense value to the seller is huge in how you communicate the potential sales process. Being up front and confident should quickly eliminate the shock and confusion on the the seller's part, and the same can be said for the buyer if you communicate the expectations of you or the seller, or simply the nature of the transaction. Communication is critical - people hate surprises in big money transactions. Setting the expectations and outlining the potential process to follow should help.

Best practices for building a strong network of Buyers?

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