Which is more important to have a property or a buyers list? In wholesaling, this is the classic tale of what comes first, the chicken or the egg? I’ve decided to bring up this topic because I’ve been asked this question hundreds of times when speaking with newbies during my 30-minute free consultation. So I would like to explore the pros and cons of both, and you can make your own determination.
So lets look at the position of building your buyers list first…
Finding the Buyers First
We can all agree that a buyers list is important. Now, how big you should build the list is a conversation for another day. Building a buyers list can afford you the ease and comfort of thinking you will always have a buyer for your deal(s). The concern with believing in this philosophy is that a buyers metrics can change. One month people may buy in a certain area, or buy a certain property type, or certain price points — and the next month it can all change due to market volatility.
Having a buyers list can help you be super targeted on your property search. If you truly evaluate your buyer before adding him or her to your list, you’ll know what they want, where they want it, how much they are willing pay, and how much risk (rehab) they’re willing to take. By knowing this, you can target your marketing to those buying criteria.
Getting the buyers can be difficult because they are very limited with their time. They do not like to waste their time, and many newbies waste prospective buyers’ time. So they may not be as eager to talk with you.
Buyers are pitched too often by newbies. Someone called me the other day asking me commonly asked questions:
Are you still buying?
If so, what area are you buying in?
What exactly are you looking for?