Whether you plan to rehab or wholesale, you'll need to build a buyers list. These are the investors you'll sell properties to. If you plan to wholesale, these folks can make you very rich.
If your goal is to rehab, from time-to-time you'll come across a property you can't do because of a lack of finances. Call the investors on your buyers list and make some quick cash selling the property to someone else.
The first step is to run an ad in the paper that says something like:
Handy, investor special, great deal for rehabbers.
Investor special, thousands below market, won't last!
When investors begin calling, get their information. Take their name, number, fax, and email and put that information in a database. Then the next time you find another deal, you have a list of buyers. Run your ads for sixty to ninety days. Even if you sell your property the next day, keep the ads running.
Tell the investors that the property sold, however you are working on another and can you call them once the deal is finalized. They will always say, “Yes. " Our buyers list has close to one thousand names. We have been collecting them for years. Every time we get a deal under contract, we fax and email our list and . . . boom. . . the deal is gone. It's awesome! Remember, the faster you find a buyer, the faster you get paid.
Here are some sample questions to ask potential buyers:
* What is your name?
* What is your phone number?
* Are you confined to any area?
* Can you close with cash immediately?
* Can I call you in the future with good deals?
* What is your price range?
* What level of rehab are you interested in? (Find out if they do simple cosmetic changes (like updating baths, kitchens, or changing carpet) or if they can handle major jobs such a foundation issues or fire damage. )
* Okay, (name), this property is located at (address). I would encourage you to go look at it right away. Based on the number of calls I have received so far, it won't last long.
* If you don't end up with this particular piece of property, I will call you with the next one, okay?
* I need your fax and email so I can send you information on my next deal.
* How many rehabs are you looking to do each year?
* Are you interested in rentals?
* What are your criteria for rentals?
* Great! We'll be in touch!
Building a buyers list is crucial to your success. As we said, it's all about numbers. If you wholesale or rehab 50 properties a year and average $10,000 per deal, how much is that? We'd venture to guess it is more than most of you are making today.
Folks with the average person making $30,000 a year, $500,000 is a pretty good jump in income, don't you agree? Is it possible in the first year? You bet it is. If you'll use our knowledge and your motivation, the money will come.
Dwan Bent-Twyford is the Co-Founder and Faculty Head of The Investors Edge University , a company that specializes in training new and seasoned investors in a wide range of real-estate investing techniques through live workshops and seminars
Dwan is President of Financial Freedom Through Foreclosures. Her company specializes in educating new as well as seasoned investors through a series of home study courses and boot camps.