Have The Buyers Lined Up!!

Are you putting your phone number in your ads?

Out of approx 20 replies I have gotten from my ads, only two have emailed me back. All the others have called. And out of those, I had one hang up mid interview. The others gave me all their info.

Karen

Just an idea .

Homes under contract draw out the buyers. But , its hard to put up an offer when you still have to search for an end buyer.

If the end buyer is in place -- you can get them to put up the escrow money until you build up your funds .

Work it both ways and see what works the best .

Good luck to you !

Randy S.
Elkton MD

You have to approach them with confidence. I understand what they are saying about not having anything for sale however most investors started the exact same way so you need to ask better questions and don't leave all the info on their vmail it's best to speak in person and you will still have hangups. I'm trying to build my buyers list as well so I understand where you're coming from.

Is very good thank you all for giving me something to think about I will put this to "action" and see what else I can get out of it! There is one thing though......this is for xbolikl4577.....what do you mean by getting them to put up the escrow $$ until I build up MY FUNDS? I mean I know that I would need to get them to put the escrow $$$ up, but what do you mean by building my funds up??

TheYungGun

Unless you have a large bank account you will need to build up your funds to be able to use for deals. On a lease option you are using the tenant buyers money to secure the property along with some for you. Once you get the bank account built up you have a little more freedom to do what you want.

Most investor buyers have the same criteria.
SFH
3/1 minimum or a 2/1 that has the potential to be made a 3/1 or 3/2
Entry level 1st time homeowner property in a decent area.
Why? These are the properties that move the fastest in any market. 1st time home owners have the most financing options. So your investor can sell their properties quickly.
OR, these are the most popular rentals, they will have more potential tenants.
Will buy at 70% of a quick sell ARV minus repairs.
I think they expect you to know this, thus the lack of responses.
Does this make sense?

Michael Mangham
MD Home Acquisitions LLC

Try this:

1) Post ad on craigslist or your favorite ad site, sample below.

3/2 Home Available!! (YourTown and Vicinity)

3/2 Home, great location, Owner Financing. Why waste your money renting when you can own with our help?

2) Response from prospective buyer interested in lease option.

What are your terms for owner financing, how much down? How much a month? length of Financing?

also would you have any pictures or an address so I may drive by.

3) My response to prospective buyer.

Prospective Buyer,

Hi and thanks for your inquiry. These homes are no longer available but I am in a position to find a home for you if you are interested and forward your criteria: type of home, location, price range. If you are interested in a owner financed home I can get you into a home but I do need to know what type of home you are seeking and the location/price range you require. The terms of financing are going to hinge largely on the type of property you want as all homes are priced differently. The down payment would range anywhere from 5% to 10% of fmv. The option period would run from 2yrs to 7yrs (negotiable). The interest rate is also negotiable but look to pay between 6% to 8% based on my past experiences. I am an investor and at times I come across deals from sellers that I may not want but potential home buyers may want and I do my best to help the buyer with the "American Dream" of homeownership. This way I make it a win-win situation for the seller, myself as an investor and a potential home buyer. The seller gets his/her home sold, I make a small profit, and the buyer gets a nice home in a nice neighborhood at a great price. Please feel free to call me at: phone # or forward requests through email: email adress here.

Thank You,

My Name

Ok, the ad above I actually used and the potential buyer responded like the above and my response was as such. I am following up and will let you all know how it worked out. Just be confident, truthful and utilize all the techniques being taught in Dean's books and advice given by DG Family. Build rapport and trust with buyers, investors. If they really want to deal and are serious they will. If not move on to the next deal.

Wishing all a happy new year and much success in 2011!!!!!

It is not where you start but where you finish that counts.

All things are possible in Christ Jesus who strengthens Me!!

I could count on the DG Family to come through!! Thanks to everyone for the advice.......again!! This is amazing Definitely gonna be take this and run like the wind with it. There's going to be NO stopping for me at all. I can only imagine where I'll be in 2, 5, even 10 years from now thanks to what Dean has taught me and the guidance and advice from the DG Family!

Knowledge+Action=RESULTS!!!!

TheYungGun

That is a great idea. I usually do not put up my phone numbers on my ads because I figured people like email better but putting a phone number on an ad makes alot more sense because it helps network and builds the trust with the investor. I will try this as well, and obviously I totally agree with Mike, he is the best wholesaler in his area and he knows what his investors want. I have also come across the same conclusion that ALL investors want 70% ARV minus repairs PERIOD. If you lock up a property and then market the specific property with pics and all info and even a quote from a contractor for repairs you will have absolutely no problem getting the subject proiperty sold. Keep it going bud, talk to ya tomorrow!

And I've actually have some news/updates for you Matt but I'll relay on that tomorrow once we talk.

I am at the station tomorrow and it is dumping snow but I will hit you up once I am done with the wrecks on the interstate. Keep up the good work!

How do you know what areas they will buy, if you already know the basic info?

thishousebuyer wrote:

How do you know what areas they will buy, if you already know the basic info?

You ask them! That is part of the basic info.

Karen

As you build your buyers lists you have to qualify them and you find out what types of properties they buy then you know what properties to go after.

Know that but the only problem is getting them to give up all of their info for their property criteria! I've been short sweet and to the point on some email responses that I get from these investor buyers and I've went all the way to asking every bit of RE info I could possibly need to make a deal with some of these guys and like I said in the original post up top that they never reply back!! And yes before anyone else says that you have to be courteous and know what THEY want it's ALL about your buyers not you......I know that much too and I have been doing that. I think it's time to branch out and hit the other methods of finding some cash buyers etc!

Wish Me Luck Everyone!!

TheYungGun

You may call me naive but I don't give away too much info on my sellers or buyers at first. What I do is tell potential buyers or sellers that I have info on someone else that is interested in dealing with them that they may do a transaction with them. I tell them I am a wholesaler and I have people that find properties for their buyers and if they are interested, please give me their phone no. and email address so I can pass it on the the people that find the properties. It seems to make people more comfortable and I don't nag at them about finding out about their buyers. I act as a go between and let my sellers know who to expect a phone call from and we sign a contract of noncircumvention to keep one another from giving away the property to someone else or talking about it to others. If your buyers are hanging up on you because you won't give them a lot of info about your properties, then they are not worth your time. I have never had a hang up. If they don't want to send me a phone no. to contact them, then I move on to the next one. There are a lot of buyers out there, you just need to know where to look. I also do not do deals in my home town, they are too unsophisticated. I find buyers here on DG and ****. You can go to biggerpockets.com or greenpearl.com or linkedin.com to find buyers. I hope this helps, get into conversations with these people that leave their phone no's and email addresses. Let them know where you are and what YOUR criterria is. That way they know what you are about and they can decide if they want to work with you. Hope this helps.

I know it may come across with me as the Grinch always looking at the glass half empty, but in this biz you have to look at it that way also. This is in regards to placing false ads.

If you have an ad dated 01/11/2011 saying you have a SFH, 3/2, brick, needs work, asking $159k, and I contact you that very day or the next, and you tell me its gone, right off the bat I know you're lying and you will get the dial tone.

Most or alot of cash buyers know that out of every 10 ads they call or reply to, 8 are false or are not on contract, so they waste less time and move onto the next one. This has been one of my main sticking points on disagreeing with the 'buyers list'; you'll never know they are a buyer unless you have something and most won't remember you were on thier list anyway. You have 50 'buyers' and no deal. Most times 45 of them are in the same position you are in. Thats why having the deal first has always been my preferred method as it allows me to 'cut the fat' on who is real and who is not.

I have a deal pending on a 50+ unit in Detroit which i'm selling. i have the contract. I got about 15 contacting me about it asking for the address. My reply has always been

"Fax me your corporate docs and corporate bank statement. Then i'll release the info and we can then proceed"

I fly into Detroit next thursday for my friday closing

When you control the deal, you call the shots and do away with the riff raffs. Otherwise, you generally deal with people in the same boat as you.

Hope this helps

long enough, you realize that money talks and bull**** walks. Elix, once again, is right on his assessment here. If I call on a ghost ad and there is no real property behind it, you aren't getting my information because I know you're just a wannabe. You can't build investment relationships built on an initial lie, just as it is hard to regroup from a lie to a potential girlfriend. As someone that has been doing this a long time, I can say with certainty that you can't reclain your integrity once you lose it.

Very interesting posts and they make a tremendous amount of sense.

Once again, the wise men speak. And we listen.

Karen

You guys definately have it right. I've been saying that for a while....how do you post ads for houses that you don't actually have. I posted a couple of ads that said "Finding great properties - looking for investors/cash buyers for great deals". I tried to be up front and not hide anything. I'm not a good liar so using ghosts ads isn't the best strategy for me. Once again I thank Bill and Elix for their insight, I follow your posts regularly and you both have great advise. Thanks for all your help.

I think Bill and Elix have good points but I also think potential buyers is something one needs to look at. A wholesaler may not have an actual property but if you ignore someone with a lot of buyers backing him or her is just walking away from a potential sale. I know a lot of people respect the idea of being the person to work with direct buyers or property owners but I also think walking away from a good network of potentials is foolish. Just my thought.

But,............if you have a property(s) under contract

I have no qualms about moving onto the next person if you can't give me what I want; there's always someone who has no problem giving me thier info and wants to close. That should be the mentality you have as well; your time is valuable and something you can't get back.

The hard part of this business as you know, is finding and then getting an actual deal under contract. Notice I said actual deal, I could put 100 properties under contract today, but none would be investor type deals.
Also, as you know and often state (I'm with you 100%)What good does it do to have a buyer and no deal!! These guys need to devote their time to leaning how to determine actual ARVs (not zillow)and actual repair costs and how to make acceptable offers! Everything else is a waste of time until one has that capability!
At the same time, always work on building your buyers list. I think the buyers list theory is taught because it is much easier to keep a student interested than putting them out in the real world and really learning what it takes. 95% would quit right away! However the buyers list will come as you acquire actual deals.
Just my opinion as usual.

Michael Mangham
MD Home Acquisitions LLC

My belief of preaching the creation of a buyers list is to garner confidence in your presentation and allow for a small build towards the second stage,....finding deals,.....which I believe is really the first stage.

It is a confidence booster to say "I have 50 buyers..." and during that time you're also working on finding deals and you feel better about yourself approaching owners, sellers and agents, etc

But I also beleive that you save more time for mainly yourself when you say "yes I have this two family, 5br, 3bth ready to be sold right now. If you'd like to see it first I will need to see that you can actually afford it. You can email it to me or send it to my attorney and once he confirms the funds, I can get your atty's info and we can proceed". Its called control.

Once again I have to agree with Elix, I don't feel comfortable as a newbie trying to sell an investor something I don't really have. Afterall I'm trying to build relationships with these people which to me is even more important than the buyers list. However when dealing with the buyers list you should be asking for buying criterias not financials. There's no way I would give someone my financial info without something tangible to show for it so how could I expect someone to give it to me. I'm taking everything that I learn through my mentor and adjusting it to better fit me. I also have learned a lot through the DG.com family, Bill, Elix, Jan, Carol and Joe just to name a few. One size doesn't fit everyone and you definately need to make sure you have the right size for you before you damage your reputation and relationships in this industry. Even if it takes a few days or weeks longer to accomplish your goals you will be building better and longerlasting friendships and business relationships in the end. That's what we are looking for, I plan to be in this business for a long time to come so that's important to me.

When a buyer contacts you, just tell them the truth. Tell them who you are, what you are trying to do, who you are being coached by, tell them how you figure your numbers, tell them that you can 100% without a doubt bring them amazing deals in the future. I spend at least 10-15 minutes on the phone with each buyer I have contact me. I don't lie to them and say that the property has just been sold because they can see that I just posted the add the same day they called me. There is no way that property sold that fast. Just tell the truth. Get to know them personally. This business is not about the actual properties, it is about the people. If you are up front and honest it will get you a long way. I have had more than one buyer tell me good luck and I hope to hear from you soon. Real estate investing is fun and it is a good way to make a great living. I have the buyers trust and I have gotten to know him personally this way.

I have a problem with telling someone that "the property just sold but we have others". This is great advise be upfront and build their trust in you. Thanks for the tip. Keep up the great work you'll be a millionaire before you know it.

Some of the buyers you get are probably other wholsalers pretending to be investors. I have come across this is the past. I would suggest that you go to as many REI clubs as you can and you will meet some real buyers and other great connections as well.
best of luck
Richie

I agree with Lane as far as honesty goes. I don't bull around with telling people I have this or that, I let them know who I am and what I do and they make their decisions with knowing the truth about me. It seems a lot of people want to work with wholesalers just to get their foot in the door.

Hello FDWilder,

Thanks so much for the example given here by you. It is concise and ethical. Looking forward to hear from you in the future!

Joe