Other than the simple purchase of a long term rental property, the other ways in which we make money in real estate normally require that we locate a buyer for a property. We may be wholesaling, doing a fix-and-flip, or simply flipping as-is properties. In all of these strategies we can wait until we have a great deal in our sights and start searching for a buyer, but that’s going to cost us money and lose us deals.
Successful real estate investors who wholesale or flip are constantly striving to add qualified potential buyers to their buyer list. It’s not just names and email addresses either. You want to have some notes about these potential buyers, as they’ll largely be other investors, many times long term rental property investors. You want to find out and keep track of the neighborhoods in which they want to own property. You also want to know their overall investment performance goals, the ROI they want, as well as the price ranges they’re buying.
You’ll be building this list, a database so to speak, by aggressively seeking out investor buyers and offering your services and properties. So, how do you find and approach them? Who are you searching for? These can be very aggressive multiple property investors or you can help the small investor to buy their first or second property for their rental portfolio.
Join one or more local real estate investment clubs first. Meet the other investors there. Find those who are potential buyers and ask if you can bring them opportunities. Ask them what they consider great deals and where. Run classified ads that state you have rental properties for sale that generate great cash flows. You don’t need one when you run the ad. If an investor calls, simply tell them you just sold out, but you have some you’re investigating and ask if you can call them when you lock them up.
Build a good buyer list and you’ll always have a buyer ready for your deals, sometimes even competition for them.
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