Today’s REI Classroom Lesson
Lex Levinrad discusses how to go about building your cash buyers list. He shares where to find your cash buyers, where to post your properties, how to capture the information of those interested on your site, and more.
REI Classroom Summary
There are ways to build your list both offline and online. Lex shares a few tips of how to get your information out there so that cash buyers are contacting you.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the FlipNerd.com REI Classroom where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Lex: Hi, everyone. Lex Levinrad over here. I founded the Distressed Real Estate Institute and I’m the host on today’s REI Classroom. Today’s topic is building your buyers list.
Mike: This REI Classroom real estate lesson is sponsored by FlipNerd Investor Coaching, your blueprint to investing success.
Lex: Now you can build your buyers list offline and you can build it online. So I’m going to be talking to you about whether or not you build it online or offline. A couple of key things you need to do is if you’re looking to wholesale or flip properties, then you’re looking for cash buyers. And cash buyers are going to be found in certain places. I’ll go through them real quick.
Number one, craigslist. Don’t overlook how powerful craigslist can be as a tool. In addition to that, every property that you have that you’re looking to sell, if you’re a wholesaler, you should be posting it online somewhere. So you should have some kind of a website or blog where you can post those properties online. It’s better if you do it on your own site than if you do it on a public site like Zillow because you could drive traffic to your site.
Then on that site you should be looking to capture them. You should be looking to get their name, their email address, their phone number. You should be saving that information somewhere.
Another good way to build your buyers list is by going out into the neighborhood of where you have properties under contract and putting bandit signs out. So what you’re really typically looking for is what realtors’ call a dummy ad and that is you’re looking for an exceptionally amazing deal.
So let’s say the typical price point of your market might be $129,000. Go ahead and put a sign out for $89,000. So it looks really almost unbelievably too good to be true. That’s going to get cash buyers calling you. So when they call, you make sure you get their name, their phone number, their email address and also have a chat with them about their buying preferences and make sure you save that information somewhere, so you have that buyer to work with for the future.
So you can use craigslist quite effectively for posting ads and then you can link to your site for them to click on that ad. Then on your site, preferably there’d be a place for them to contact you, to email you, or to input additional information. If you can get your site set up, so that they can add themselves to your buyers list automatically that would be ideal. So the way to do that would be to have some kind of an order responder service like a Constant Contact or MailChimp or AWeber whereby you can have a website where you’re posting your deals on this blog.
I recommend you use a blog format like WordPress and post your deals there, syndicate them on sites like craigslist and then go ahead and drive traffic to them. When they come in, make sure that it’s very easy for them to sign up for your deals. Then what you want to do is start selling them those deals. So that’s a good way to build up your buyers list. Of course, the old fashioned bandit signs works real well. You can get bandit signs for as little as $2 a sign to put out in the neighborhoods.
So typically, you’re paying about $1 a sign to put them out and $1 a sign to buy them, $2 a sign. You could be putting them out. They make the phone ring and you could catch buyers calling you interested and potentially buying that property. So if you’re a wholesaler, you have a house under contract. Even if you’re not a wholesaler work with somebody else who has a house under contract, market their deals for them, get paid when you find buyers. While you’re doing all of this, think about getting your real estate license. It will make your life a lot easier.
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