Do you need a buyer’s list before finding a property?

This is one of those chicken / egg questions that many investors ask.

Do I need a property before looking for buyers or should I have a list of buyers before I find a property?

The most important thing, of course, is to start somewhere, just start. If you don’t have connections, investors to sell to, you’re probably new to the business and may not even know a good deal if you find it.

Some things you need to know before you can make an informed purchase include:

  • how to compare properties to determine their true value after repair
  • how to determine true repair costs

If you don’t want to “own” property but want to be able to “sell” property, you need buyers.
To find buyers:

  • constantly attend all local real estate investor meetings, you can find and collect business cards
  • search MeetUp.com and NationalREIA.org to find meetings in your area
  • call we buy houses posters (add them to your buyer’s list)
  • call signs to rent (looking for owners who want to buy more)

Find buyers and know what they’re looking for so that when you find a deal, you have someone to call right away.

If you buy correctly so that you can sell at a good price, investors will line up to buy from you. It doesn’t take many buyers, just a few good ones who buy from you over and over again, for you to be successful.

There is no place to buy a buyer’s list or “find” a buyer’s list. This is something you should build yourself over time through the contacts you make and the referrals you receive.

And it takes time. When starting out, you won’t have a listing because you don’t have a proven track record, so investors aren’t looking for you. And you haven’t done enough networking to have met enough serious buyers.

Remember, the list doesn’t need to be long, so don’t panic. Many people create lists with the names of all the people they can get. That’s not a good list, just a long list. What you want is a good list; names of people who actually buy investment property in your area, and preferably time and time again.

A list of just 6 good names will give you plenty of opportunities to sell quickly. If you’re having trouble selling to such a large list, you don’t really have any good deals for sale, which means you’re either taking too much profit for yourself or paying too much when you buy.

What can you add? Have you already created your buyer list?

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