How To Get Qualified Buyers For Your Houses In Real Estate Investing
In a depressed real estate market, it is harder than ever to sell houses. This applies to deals that look good. It is therefore necessary to have a specific plan for selling houses to be a successful real estate investor.
This article focuses on identifying buyers with cash for your real estate deals. Specifically, we focus on how to market and successfully sell wholesale deals.
You must identify qualified buyers to be successful flipping wholesale deals.
Here are the steps involved in identifying buyers:
1) Build a buyers list
This is a primary golden rule in real estate investing. If you are selling houses, you must build a list of people with cash looking to buy the properties you sell.
In order to build a good buyers list, you must have a real estate investor website that is fully equipped with the ability to automatically build your buyers list as you sell your houses.
The first thing you do when you get your next deal is to email it to your buyers list. Chances are you will get a buyer from that list. Many times I have found buyers the same day I email my deals to my buyers list.
A good source of real estate investor websites is recommended at the bottom of this article.
2) Market aggressively
A lot of investors rarely market their properties adequately. It is necessary to run a marketing campaign for every property you get even if you have a buyers list.
You must always include your website address where they can view the property and sign up to your buyers list.
I make sure I run ads on Craigslist and other real estate websites. You can run ads in your local papers for $200 to $500.
Avoid providing a phone number, instead give them your website address to view the properties. If you give them your phone number, it must be a voice mail that re-directs them to your website.
I always make sure they cannot view full property details until they join my buyers list.
In general, this approach is likely generate as many as a hundred potential buyers who join your buyers list.
3) Pre-qualify potential buyers
Most real estate investors get excited when they get a potential buyer. You should treat them as potential buyers until you see they have money to close.
When I talk to a potential buyer first, I take their contact information and show them the property or give them the lockbox code. Once they express interest to buy it, I must ask them the source of their cash.
"Cash" is not enough. Is this cash in their bank account? Have they just sold a house? Are they working with a line of credit? Do they have a private money lender or a hard money lender?
In other words, I must see proof of funds.
Do not rely on sellers who are hoping to get a mortgage from a bank. They must have cash, and the ability to close quickly.
4) Follow through to closing
I then sign a contract with the potential buyer. I must collect a cashier's check for the earnest money. I take a minimum of $500 which they stand to lose if they do not close, but which is credited to them at closing.
Be sure to keep up with the closing process and ensure the money is available when expected. As always, time is of the essence in closing wholesale real estate deals.
Learn how you can buy and sell houses from an automated real estate investor website that both pre-educates potential motivated sellers and house buyers, while automatically building buyers lists for future properties you may have for sale.
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