The chicken or the egg? Which gets marketed first, sellers or buyers?

[Paul Z.]

I'm putting together a "first deal" strategy for getting my first wholesale. My intention is to launch this plan into action with direct mailer's to sellers starting next week. However, based on all of the preliminary research I've been doing the only thing casting some indecision in my head is whether I should.....

-Dive right in to finding motivated sellers and then deal with finding a buyer once I get the contract

or

-Defining buyers and their "specific" needs so I can go out and look for the seller with their requirements to have a better chance of closing fast

I certainly don't want to waste much more time and I have a gut feeling that simply jumping in and "doing" by getting some motivated seller marketing started is the right way to go. Then when the deal comes through I can just figure out the next issues when they arise.

What's everyone's thoughts on this? Which option would you focus on or did you focus on when you first started wholesaling? Thanks!!!

Paul

[Dev Horn]

We STRONGLY recommend getting a few buyers lined up BEFORE you do marketing and get properties under contract. At least know who you will be calling as soon as you find the deal. But understanding the needs of the buyers is very important. They are your ultimate customers, so if you go find product that they aren't interested in, you could waste a lot of money & effort.

One other caution. In a little "test", I have offered some excellent pre-qualified leads (motivated seller, over 50% equity, etc.) to guys who represented themselves as buyers, and found that many could not do anything - they liked to say they were "investors" but when given the opportunity, they couldn't take action. So when you talk to buyers, ask them about recent deals they've done, their sources for financing, exactly what they buy, how fast they can act, etc. You get what I'm saying? Just because someone tells you they're a cash buyer does not mean they actually do it or CAN do it. Cut thru the BS so you have people ready to roll when you bring a great deal.