OfflineMany new investors focus on the no-money-down techniques of bird dogging and assignment of contract. I believe that is a good and safe way to begin your investing business. You are not risking your money or credit as you learn the market and it is one of the quickest ways to put money in your pocket. The first big step in using those techniques is to have a buyer’s list. The buyer’s list is a combination of resources. First, they have the money or credit to purchase a property. Remember, someone is going to have to buy the property for you to get paid. Second, they should clearly define the neighborhood, area, property type, price range and other factors they use to evaluate a property. Knowing the expectations of your buyers helps you focus on exactly the right deal to pursue. You may find a great deal right next door to where you live, but if you don’t have a buyer for that type of property, there is no potential for you to profit.
I suggest you have a minimum of five qualified investors on your list before beginning to find properties. Five is bare minimum and those investors would need to be active and looking for three or four properties per month. If the investors on your list are buy, fix and sell types who only do three properties a year that minimum number of investors should jump twenty. It is a lot of work to get a property under contract, so be sure you have enough buyers on the list to give you a good chance of selling the contract.
The buyer’s list is one of the most common problems we hear about. Spend your time developing a good buyer’s list and you will reap the rewards of real estate investing.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
So true.
Even 5 can be shakey. Found out the hard way. They all jumped ship the on the same day. No buyers list don't embarrass yourself on the other end. They split, so went the contracts and Realtor. It was a real bad hair 3 days.
Michael Radtke
www.nationalpropertyscout.com
Slide Show:
www.nationalpropertyscout.com/Slide-Show.html
Do you have any thoughts and words of wisdom on how to keep those buyers??
I don't know if it was me or the fact it was almost the year end and they were changing tactics or what. No explanation, just bye.
Michael Radtke
www.nationalpropertyscout.com
Slide Show:
www.nationalpropertyscout.com/Slide-Show.html
Thanks for the guidance Bill. The more buyers the merrier I suppose. How do you feel about getting buyers from signs that read, "I Buy Houses". They seem too easy to put on the buyers list, but who knows.
David
Hey David,
Those signs can represent great buyers or can be garbage. Call the number and explain what you are doing. Ask if they would like to be on your buyers list, get their criteria and qualify them, i.e. ask them if they have cash to close!
Gena
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
I have a small cash buyers list. From reading the above messages I know I still need to add more cash buyers to my list. I have the areas that my cash buyers want to buy in, the number of beds/baths, how much equity, how fast they can close, block homes at least 1000 sq. ft., single family homes and how much money they would like to put into rehab.
My question is how do I ask for a proof of funds from them? Like an old bank statement with certain information blacked out.
When I looked into transactional funding I saw that I needed to have the end buyers info. to complete the application. The end buyers b to c funds need to be in escrow I believe at least a day before deal is completed.
Also I've been told by realtors that deal with with the bank that I need to submit a proof of funds along with the offers that I put in. Where do I get these proof of funds to show the bank? Is this where transactional funding comes?
It depends on where the cash is coming from. If it is actually coming from cash in the bank then a bank statement is easy to print off and send to you.
If it is coming from a private money lender or hard money lender that might be a little more difficult but if they are persistent they can still get something more than a piece of paper stating how much is available.
I have sent off bank statments many times with offers once the seller has requested that information. Good luck!
FYI - you can get a list of every cash buyer and private lender in any county in the country at www.cashbuyerlists.com. Hope this helps!