Buyers are out there, it's just a matter of rounding them up and keeping in touch. It helps to be able to determine which type of buyer you are hunting for from the start. Remember this: you're the person who has something they want when a buyer calls you; if you are calling them then you are trying to sell them, let's insure buyers call you so you remain in the position of power from the start. You should Be a Real Estate Heavy Weight.
Let's look at a few categories of typical buyers to get some perspective on their mindsets and how and when we'll market to find them in order to supply their real estate buying needs.
Rehabbers: These are folks looking to fix and flip property for quick turn profits.
Landlords: These are folks looking to buy to rent out to others for long-term equity accrual while generating a positive cash-flow every month.
Wholesaler's: Will either buy or put an option on your contract to hopefully flip the paper to another buyer who is willing to pay more.
Lease Option end-buyers: These are folks who can't qualify for a loan of their own but want to be home owners as opposed to renters again.
Retail Buyers: These are end buyers who can obtain a mortgage or have cash and generally buy the property for their own housing needs.
There are variations of buyers out there but the above 4 types are generally considered the prime targets of people who have property to sell. Understanding each buyer's mindset helps you to market to those buyers interests, do they want quick cash, long-term wealth, tax deductions, a place to call home etc... If you ask enough general questions you'll quickly discern which type of buyer you have at hand. Once you know, you can then tailor your offers and present properties that satisfy what is important to them.
Buyer: Someone who is ready, willing and qualified! Those that aren't qualified may be perfect tenants, lease option buyers or owner finance candidates, so qualified can have different meanings.
Ready: Someone who is in the market to buy within 1-45 days, keep in mind a retail or lease option end-buyer generally buys once and they're out of the game, landlords, rehabbers and wholesaler's are more likely to buy multiple properties from you over time as they accumulate, sell or flip existing assets. Having active buyer's lists in different categories that are often ready to buy property is a very smart way to operate.
Gee Danno, how do I find these people? Ah! I'm so glad you asked! Let's start out with one of the all time greatest methods to kick-start your building a buyers list. In your search for bargain priced properties of your own, it makes sense that you will eventually find a very good deal, once you have a superior deal to offer you turn around and market that property at cost! Yep, no profit for you on this one. Why? Because you are going to advertise that property to every investor and potential property buyer on the planet!
The reason for this is that you will get the most calls and response when you advertise a screaming deal! Granted you'll most likely sell that deal relatively quickly but you'll be gathering information from each potential buyer who calls to build your buyers list for future properties that you offer. If you don't have a property of your own to sell, ask someone who does! I can assure you that they aren't going to turn down your offer to advertise their property for them for free! You might negotiate a small fee if in fact you do sell their property but your main objective is to build you buyers list!
Let me give you an example of one way to collect potential buyers by the dozen, hold an auction, advertise for a solid week in advance so you attract the most amount of buyers, begin with bandit signs, placing about 100 of them around a 5 square mile area of the property, we just did this and had 800 calls because it was a great deal of those 800 calls we had 300 people show up on auction day, of course the home sold but we also added new buyers to our buyers list.
Here are ways to advertise for those buyers:
Pay Per Click Ads
Local online Classifieds
Direct mail/post cards
Start an investors MeetUp group
Your own website
Use your imagination, the list is limitless, there is a free e-book called the Internet Real Estate Yellow Pages that you can download for free at my site MagicBullets.com go grab that and you'll find 100 more ideas and places to list your deals. Now go Be A Real Estate Heavyweight!
Dan Auito :~)