Chicken or the Egg?

Chicken or the Egg?

Hi everyone, I'm re,re,re,re starting my REI career. I've gotten over myself, and i'm starting over. My question is what is more important to focus on first, building my buyers list or finding that killer deal to send to my buyers? Obviously they both need to be done, but which will get me moving faster. Build the list, find a deal, pass it off. Find the deal, buyers will come. In the past i focused more time on the buyers (then i stopped... don't ask), but this time I'm determined to do it right. Which method in your opinions is best? Thanks in advance for your help.

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For verily I say unto you, That whosoever shall say unto this mountain, Be thou removed, and be thou cast into the sea; and shall not doubt in his heart, but shall believe that those things which he saith shall come to pass; he shall have whatsoever he saith. -Mark 11:23-
-Now who are you to say it can't be done?-


David, You will get both

David,

You will get both lines of thought here, so hopefully I'll get bonus points for commenting first. Eye-wink

If you build your buyers' list first, then you know exactly what it is your buyer wants before you going looking at homes. On the other hand, if you go out and find a great deal and market it, that will attract buyers to you as well. I prefer the latter strategy. Some investors will be somewhat indifferent to you if you don't have a property already to tell them about, but that's not the rule, just the experience of some DGers on here.

The most important point is get out there and do a little bit of both. Keep looking for buyers, and keep looking for deals. You definitely need to strike a balance between the two. Hope this helps!

Vincent

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"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53


A buyers list with no deal....

is like having 300 friends on facebook; just a bunch of names you aren't going to speak with much if at all

When you have a deal, you set the parameters, plus 'buyers' become very flexible when you have something that is financially appealing and may not have thought about purchasing that type of property, but will change their tune if it fits them.

When you have nothing and you have 10 buyers who want 10 different things, how do you prioritize??? Look I know the preferred method is buidling a buyers list and if that works for you, more power to you, but if you were a buyer, who would you prefer to speak with

Someone who has no deal, but will call you when they have one

or

Someone who has a deal,....or deals and can get to work pronto on getting a check????

Think about it


Chicken Omlette, Side of Salsa

I agree with Elix ... in terms of the logic of this.

Having the deal first makes more sense to me. Multiple buyers can be shown the merits of a specific deal that is already locked up ... and be persuaded many reasons that it's right for them. Otherwise, I think the process feels more abstract to everybody.

But I also believe, in general, that there is no wrong answer to this question.

Since we ultimately need *** BOTH *** sides of this equation (the deal and the buyers) I think we should pursue whichever feels most attainable to us initially. Different answers for different people. Doing what seems easiest may help us to get a foothold with REI and feel less discouraged at the onset. Typically, our motivation is red hot when we start. Making "any" headway at that juncture can launch us forward in a way that makes us unstoppable when the obstacles hit.

Bottom line: Just do something ! Eye-wink

~ Sherri


Buyers List!!!!!

Hey David, im not trying to confuse you more lol, but as i was told in the success academy focus on your buyers list FIRST, then move to finding the deals!! If you find deals first, and then have no buyers for these deals, what good does it do? As vincent said, and i agree, when you have your buyers lined up along with there criteria, youll know exactly what kind of houses your looking for. All of the success academy coaches told me the same thing, God Bless, Mike...


David

There is not a right or wrong answer. One issue some of us here on DG.com have a hard time running a ghost ad for something we do not own. Now there are many good people that are very successful that have done this type of advertising making a lot more money than me. Like others have said if you lock up a deal, you run an ad on that home and the buyers will come. However, you may be stuck with that home if you do not have your exits in place.

Here is something else you can do. Run an ad on the home you live in and ask for more than what you would sell it for. That way people will call and you get their information worst case is someone may buy your home for more than you want. ( I read this some were here on DG .com or in the Edge DVDs.)

I hope this helps

Steve


It cant hurt to do both but

It cant hurt to do both but just do it, I'm a new investor and I'm finally stepping out and am looking at properties right now to lock up a deal so I can bring buyers to it.
Excited about this journey, all I have is time to do this business.

Good Luck everyone

Lani

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Lani Young


Buyers List!

In this economy you will make your self crazy with all the great deals to be had. But if you don't have the money to make it happen you will just get frustrated. Usually it is either a buyers market or a sellers market. In my opinion it is neither, because the buyers can't qualify for loans. It should be a buyers market because house's are so cheap. If and when it becomes a sellers market the houses will go back up in price and finding the deals will be the challenge. For now, work on getting buyers. I have been working on this for a few months and I have one buyer who wants apartments, with in 300 miles of where they live, turn key, 8% cap rate, One seller that wants high end short sales, One that wants residential short sales, so I am doing everything I can to get buyers, both retail and wholesale. Its a different ball game right now. A few years ago, we could buy a place, and then find a buyer within a reasonable time period. If you do it that way now you may be holding an investment for a long time. Instead, Look for what your buyers want. We are now glorified waters or waitresses. Your buyers place an order, and we serve it up.

P.S. I have found so many great deals and then don't know what to do with them. We have looked at houses at Auction, houses to rehab, short sales, Apt. buildings, But with out backing unless you are a Dean Graziosi kind of wealthy person, you can't move forward. Check out the new business's in your county, Are there colleges, prison's, what has a big population of workers? Make it your goal to reach them with the opportunity that you can offer. In Ca. we can not lock up property. So LIE! I know that sounds bad, but that is what a ghost ad is all about. And if you are not hurting anyone???

P.S.S. The Chicken

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Charisse


Buyers List

My opinion is to work on finding deals right away. What strategy are you going to use to find and acquire them? Learn how to determine actual ARV on the property, actual rehab costs, holding costs, commissions, exit strategy. If you don't know how to determine what a deal is first, you must learn. This is how you make money, when you buy. If you don't know how you will not be able to sell your deal! Until you learn how to make offers that will be accepted by the seller AND make you money you are wasting your time doing anything else (in my opinion) In the mean time network and market for buyers. Building this list can take a while so why sit around building your buyers list first?
The most difficult part of this business is finding a great deal, everything else is easy! Once you do a deal or two you will understand! Get out there and go to REI meetings and seminars, meet people!

Good luck and start finding deals!

Michael Mangham
MD Home Acquisitions LLC

P.S. Remember this number when assigning to a rehabber. Buy it at 65% of ARV after repair cost! Tack on your assignment fee and don't go over 70% of ARV after repairs and it will sell!!! Believe me, a buyer will find you!!!

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


wow

Thanks to everyone for sharing their opinion, I knew that the answers would be varied. What I didn't expect were all the great explanations as to why. It seems though that the majority of you are find great deal then buyers will come people, or a mix, but mostly focusing on deals. I think that is what makes most sense for me too. Where I live in NY I don't think that I will have all that much trouble finding a buyer, but I don't have much experience as of yet making offers. so it's decided... I'm going to focus the larger portion of my REI time finding a killer deal but still network and build my list where I can. Thanks everyone for helping me choose my plan of action.

__________________

For verily I say unto you, That whosoever shall say unto this mountain, Be thou removed, and be thou cast into the sea; and shall not doubt in his heart, but shall believe that those things which he saith shall come to pass; he shall have whatsoever he saith. -Mark 11:23-
-Now who are you to say it can't be done?-


""Since we ultimately need

""Since we ultimately need *** BOTH *** sides of this equation (the deal and the buyers) I think we should pursue whichever feels most attainable to us initially. Different answers for different people. Doing what seems easiest may help us to get a foothold with REI and feel less discouraged at the onset. Typically, our motivation is red hot when we start. Making "any" headway at that juncture can launch us forward in a way that makes us unstoppable when the obstacles hit.""

grazi "i agree there is no wrong answer but i sure like yours best. especially to a newbie"

your reference to RED HOT is so true....

happy investing
WALT


I Wonder???

I wonder why the coaches from the success academy tell there students how important it is to have your buyers list in place first? These people are the best of the best, i wonder what they know,and we dont? Something tells me thats great advice.......


Yes the Buyer

Yes the buyers list is allways the important part of doing business,you
contact your buyers and ask them what type of property are they interested
in so you can get it under contract and pass the deal to your end buyer.

Wilson

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Do not let no one stop you from knowing more knowledge and initiative.


Buyers list

Example: I have 10 solid cash buyers on my list. BUT, I have no real idea on what a real deal is, how to find it, lock it up and offer it to my buyers. What have I accomplished? No income that's for sure! A buyers list is a MUST no question but the longer you delay learning how to do comps (not from some website!!) actual repair costs, what your exit strategy is, how to actually make offers you can not do this business and make money! What if your strategy is buy and hold? You need tenants NOT buyers! You will acquire buyers along the way but learning how to acquire properties at the right price is THE KEY to this business period!
I am an Academy graduate that got his 5 deals and a refund. They are the best
there is without question! However when I took action and started making offers and actually learning the real estate business from an investor standpoint is when I became successful, not running ghost ads for buyers I had nothing to offer!
Granted, some people are afraid to step into the business at first so it is EASY to work on a buyers list and get your feet wet a little at the time. That's OK for sure, BUT!

Good luck to all,
Michael Mangham
MD Home Acquisitions LLC

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


edge 09

Something interesting that I noticed while re-watching the 09 edge event. Dean is constantly saying how if you have a deal locked up you will be able to find a buyer. Jeff Jensen talks about building a buyers list first(lol). Now I would (and will) follow the advice of both because obviously they know what their doing. It did reinforce my conclusion that it is basically whatever makes the most sense to you. Thanks guys for all the great help!

__________________

For verily I say unto you, That whosoever shall say unto this mountain, Be thou removed, and be thou cast into the sea; and shall not doubt in his heart, but shall believe that those things which he saith shall come to pass; he shall have whatsoever he saith. -Mark 11:23-
-Now who are you to say it can't be done?-


Look for the Deal ...

Well, if you are doing one deal at a time, then I would say look for the deal first. Because it takes longer to find the great deal than it does to find a buyer...But actually while you focus on looking for that deal, you will have time to secondarily find buyers (almost simultaneously). Whatever you decide to do first, DO IT! Then hurry up and work on the second thing! lol

Good luck!


Why I find deals first....

Time and control. Which always intertwines itself

Time in where when I find something that fits what I, first, am looking for that makes financial sense is that its easier in my experiences to find buyers, not fellow wholesaler upfront. Plus normally when you're building a buyers list, realistically any and everyone is going to tell you they're a cash buyer when in reality they're wholesaling like you and have thesame type of transactional funding agreement like you, and once they get the info will daisy chain and postlet.com it the moment they get it which will

1. Cut into your fee
2. Cut you entirely out of the deal

Control in that it keeps me from wasting time. When I have deals, and you're a 'cash buyer' I ask once "are you a wholesaler or a cash buyer???"

1. If they can't differentiate, hang up on them. Waste of time

2. if they say they are cash, and they're really not, hang up on them

3. If they are cash, and like the deal, it should be no problem with them presenting a POF letter from bank with bank managers info to verify and bank statement. Sometimes they may balk at providing a BS, but tell them to redact the acct #, but their name has to be on it even if it is through a company or has to be verified as such. Any discrepancies that cannot be easily recitified....hang up and move on.

Most important, deals are like cheese. I'm sure everyone and their mothers mothers involved in REI gets a call asking to be on soeone's buyers list. And they agree. And hardly ever hear from that person again. And they are forgotten. But they'll remember you when you have something. Or somethings. Plural. Multiple deals to offer.

Deals first.


Buyers List First!!

Did any of you hear the conference call tuesday night? Dean asked one of his top students Matt Larsen what is the first thing to do, to get yourself going? Matt said to network, and get your BUYERS LIST going first,(b 4 you start to find the deals)!! If you didnt hear the conference call, listen to it, and it will clear up some of the confusion on what to do first......


That was some awesome info

Mike, I was on the call last night which i thought was great. As soon as Matt started talking i thought of this thread.lol I am all about copying what works, which in my opinion is one of the best things about this sight. I think the call cleared up a few things for me. I think my fear was finding buyers, having nothing to give them, and not be taken seriously. I like the tip that Matt gave about having an agent search for all cash buyers in the last 90 days. I think I'll try that, but since I haven't got that first deal under my belt as of yet I'm also going to practice finding those motivated sellers.

__________________

For verily I say unto you, That whosoever shall say unto this mountain, Be thou removed, and be thou cast into the sea; and shall not doubt in his heart, but shall believe that those things which he saith shall come to pass; he shall have whatsoever he saith. -Mark 11:23-
-Now who are you to say it can't be done?-


Buyers List..

Hey David, im glad the conference call cleared up some of your questions on what to work on first, and as every success academy coach, and Dean has said, work on your buyers list first, God Bless Mike..


80 ways to find buyers by jeff jensen

craigslist and linkedin

80 ways to find buyers Exit Strategies Part 3
by Jeff Jensen

80 ways to find buyers:

1. Freebie Newspaper Ads
2. Minor Newspaper Ads
3. Newspaper Weekend Edition Ads
4. FSBO Magazines
5. Business Cards
6. Paper Signs
7. Bandit Signs
8. Door Hangers
9. Bulletin Boards
10. Handouts
11. Flyers
12. Real Estate Agents
13. Expired MLS Listings
14. Open Houses
15. Title Companies
16. Closing Agents
17. Accountants
18. CPA’s
19. Attorneys
20. Mortgage Brokers
21. Lenders
22. Property Management Companies
23. Financial Planners
24. Financial/Money Advisors
25. Investors
26. Home Inspectors
27. Appraisers
28. County Records Employees
29. Escrow Officers
30. Hard Money Lenders
31. Private Money Lenders
32. Secondary Lenders
33. Developers
34. Contractors
35. Local Employers
36. Rent-to-Own Stores
37. Referrals
38. Your Existing Occupants
39. Sub-Contractors
40. Handymen
41. Door-to-door Canvassing
42. Free Gift Advertizing
43. Postcards
44. Promotional Materials/Calendars/Note Pads/Magnets
45. Cooperative (Co-Op) Advertising
46. Legal Newspapers
47. Grocery Store/Wal-mart
48. Flower Carts
49. Benches
50. Bus Stop
51. Adopt a Street Sign
52. Laundromats
53. Car Washes
54. Yellow Pages
55. Restaurants
56. Restrooms
57. Mail Center
58. TV Guide/Newspapers
59. TV Ads/Commercial
60. Special TV Programming
61. Radio Ads
62. Billboards
63. Walking Billboards
64. T-Shirts
65. Hats
66. Community Business Organizations
67. Chamber of Commerce
68. Sponsor Sports Team
69. Sponsor an Event
70. Charitable events
71. Charitable Raffles
72. Host a Charitable Function
73. Local Churches
74. Weekly Hotels
75. Property Brochures
76. Magnetic Vehicle Signs
77. Vehicles Wraps
78. Real Estate Auctions
79. White Vehicle Lettering
80. Club Membership Bulletin Board


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