When I first started wholesaling, I needed to find ways to grow my buyer’s list cheaply and quickly. Here are three hacks I used to grow my profit from roughly $6,000 per deal to $20,000 per deal in the same markets over the past few years.
The Top 3 Ways To Build Your Buyer’s List When You Are Starting Out
- Reverse Bandit Signs
So you just bought a house and you are trying to figure out how to move it. The first thing you do is place 5 or 6 “reverse bandit signs” in front of the house and around the neighborhood on street corners, intersections, etc.
These signs can say things like ‘CASH ONLY, Investor Special, 555-5555’
Sometimes I will even put a low price on there like $25 or $40 thousand as well as a number to text or call (not a personal number but one you set up to route people to your business).
Cash buyers will call or text and ask to be added to your buyer’s list. I have also found that local people that live in the neighborhood often want to move a family member in and are willing to buy a fixer-upper quickly and at a much higher price than investors!
- Facebook Groups
When you move into a new market, one of the first things we do is look for the local Facebook REA groups, local interests, meetups etc. especially in areas where there are a ton of investors. We join the groups and post ‘Hey I’m a new wholesaler in the neighborhood would you like to be added to my buyer’s list?’ That’s step one.
The next step is - and you can do it yourself, but I highly recommend hiring a VA for a few bucks an hour-to go into these Facebook groups and look for posts like the one I mentioned above.
Other wholesalers will have made similar posts you can find, sometimes as far back as two or three years, with responses from interested people leaving their email addresses in the comments. In one group I got nearly 1,000 new email addresses with a couple hours of a VA’s work. These are people that want this type of information and they have already put their information out in a public forum to receive it.
This last hack is overlooked by so many wholesalers.
- Get On Every Single Other Wholesalers Buyers List
I get on other wholesaler’s buyers lists. Don’t worry I am not stealing their list, this is fully ethical. I save every deal they send me. The address goes into a spreadsheet. A month or two later I search the address and see who bought it. Those are TRUE Cash Buyers. It is simple and very cheap to skip trace them in white pages or county records and send them a card, give them a call, and quite simply ask them if they are interested in getting on your buyers list. This method was a game changer for us!
We increased our profit because we built a list of hungry, true cash buyers.
Using these 3 hacks and a bit of your time, you can watch your profit grow quickly in the early stages of your business. I hope this helps!