Cash is king when it comes to real estate investing. As such, a real estate investor buyers’ list is crucial. While it is true that there are several ways that a real estate investor can make profits, most of them involve selling a home for profit. If you’re in the flipping business, your buyer could be an investor buyer or a retail buyer. Here we will discuss the importance of having and creating a buyers’ list to generate profits faster as a real estate investor.
The benefits of cash buyers
Truthfully, cash buyers are a godsend to any real estate transaction. Cash buyers lead to faster closing times, fewer headaches, and fewer complications. The reason that cash buyers are often easier to work with is that there is no loan approval process. This can eliminate several weeks or even months off of a closing timeline when buyers are not at the mercy of lenders and their sometimes-unreasonable requirements. Investors who can find cash buyers ready to make an offer on properties stand to generate profits quickly.
How do you find cash buyers?
Cash buyers can be found anywhere and are not found in any single demographic or industry. In other words, anyone with cash on hand could potentially be a cash buyer. Overall, if you know where to find cash buyers, you are setting yourself up for bigger (and faster) investment profits.
Maintain a List of Buyers
No matter how you are finding cash buyers, you must have a list of ready buyers within your reach. Overall, your holding costs will be significantly lower if you can find cash buyers to sell your property quickly. An effective buyer list is one that is comprehensive and inclusive. In other words, it includes both retail prospects as well as large and small investors. Your buyers’ list does not have to include retail buyers with good credit and down payments if you don’t want it to.
A large majority of investors are buying for long term rental profits. As such, these types of investors will not be as aggressive in finding deals. In any event, the most successful strategy with selling property includes creating creative lease purchasing and financing options for those who are credit challenged. Additionally, recognizing and understanding that other investors have their own goals and requirements opens up additional opportunities when you start thinking outside the box.
Newspaper ads are a great inexpensive way to find potential investors to be on your buyers’ list. The key is to run one ad consistently in the same section for several weeks. Savvy investors will run ads that include things like “Credit problems? “no down payment?” or something that communicates flexible financing options that are available. Print advertising also includes things such as your business card and your small flyers which all work to solicit prospective buyers for your buyers’ list.
Signs commonly referred to “bandit signs” are those that you may have seen stuck in the ground in yards or on busy street corners. These signs typically say things like “I buy houses” or “no money down houses for sale.” These signs will work pretty well if the language is attractive.
Craigslist is another way to find individuals to be on your buyers’ list. Craigslist is similar to a classified but is free to use. Frequently people search on Craigslist using key phrases like “no money down homes.” You have the option of attracting phone calls from the ads you post on Craigslist and adding those contacts to your buyer’s list. Or, you can attract phone calls and add people to your real estate investor buyers’ list from Craigslist ads. But, there’s another way to build your buyers’ list with Craigslist. You can go on the site yourself and search for people who are running ads that they want a home with low cash down, or they want a home with a low credit score. If you find them feel free to make the first contact.
Hang out With Other Investors.
The tools mentioned above focused on finding non-investor buyers for your property. However, you can also use these same tools to find other investors as well. In any event, finding other investors requires you to “brush shoulders” with them. You need to go where they gather. This means going to investing clubs, networking events, or even playing golf at the locations where you know prominent real estate investors hang out every weekend. Just having a conversation with other investors to see who is buying for short-term or long-term rentals, is another way to add investors to your buyers’ list.
Overall, your real estate investor buyers’ list is one of your most valuable tools for generating real estate investing profits. As such, you shouldn’t neglect it. Instead, focus on building it, maintaining it, and using your buyers’ list for all your available investment opportunities.
I hope to see on my free webinar this Saturday: GualterAmarelo.com/Live