It’s not who you know. It’s who knows you.”
Every real estate investor knows that having a solid cash buyers list is super important… but not all of them realize that the list doesn’t have to be huge.
As you build a cash buyers list, the key to success is to “collect” a core group of highly active buyers that will jump at the right deals. These people are also pretty much guaranteed to work with you on several deals every year.
When it comes to building your cash buyers list, there are two schools of thought. First, you should build a solid buyers list before you go out and find a deal to wholesale. On the other hand, if you have a property that’s a good deal already under contract, you should be able to find the right buyers easily.
If you’re a relatively new real estate investor, I would say… do both. Focus on finding buyers and deals at the same time.
But, regardless of the timing, I have 5 methods/tips that can help you build your cash buyers list quickly. So let’s not waste any time, and get straight into it…
STEP 1: INSTANT COMP AND ALL THE PUBLIC DATA
If you’re working with a real estate agent, they will give you comps. You should trust your agent, but you should also verify what they tell you. The best way to do that is to run a few of your own comps.
#1 SET YOURSELF UP FOR SUCCESS WITH THESE MUST-HAVE TOOLS
Before you begin building your cash buyers list, you’ll need 3 important tools. These are going to help you organize the information you gather, so you can follow up with the best potential leads.
All 3 of these tools are inexpensive and entirely necessary if you’re going to manager your investing business efficiently. Take a look:
Website/squeeze page – My own proprietary software for investors, Accelerated Investor Office (AI Office), gives you the ability to easily create a squeeze page so you can start sharing it on social media, directing people to it via email, etc. A squeeze page – for those of you who don’t know – is simply a web page that includes a form where interested cash buyers can submit their contact info to you.
Mobile phone capture technology – When an interested cash buyer calls you, mobile phone capture software not only captures the person’s phone number, but it will also identify which campaign they were targeted with (Craigslist, direct mail, etc.) – and you can set the system to automatically send voicemails to these people who contact you.
EZ texting/mobile texting – Similar to the mobile phone capture technology, this feature allows you to easily respond to potential cash buyers via text.
As you gain more business and the number of interested cash buyers you work with increases, it will become essential to organize and quickly respond to inquiries – which is why these tools can be immensely helpful.
#2 BUILD A CASH BUYERS LIST IN AI OFFICE
In AI Office, you can enter a zip code or city, and the software will generate a list of all the buyers that have paid cash for properties in that specific area for the past “X” number of months (however far back you want to search). Pretty cool, huh?
Now, I would highly recommend that you don’t just start mass emailing the people on this list. That’s not an ideal way to build genuine, strong connections. Instead, start by calling a few of these people, introduce yourself, explain what you do, and get to know their buying strategies and property preferences.
Also, assuming the person you’re chatting with is consistently buying properties, ask for a couple of addresses of properties they’ve investing in, so you can research those and get to know exactly which types of properties this specific cash buyer is drawn to.
#3 CAPITALIZE ON SOCIAL MEDIA STRATEGIES
If you’ve never used social media before, or you’re really not super comfortable with it – now is the time to get involved and get going with social media.
You’re going to need a Facebook page and YouTube account, minimum. And you don’t have to be a copywriting guru or have a stellar on-screen presence to effectively manage these accounts. The key is just to update and post on them regularly.
YouTube is a great place to post walk-through videos of your properties. Even after they’re sold, interested cash buyers can view the videos to see what types of properties you generally invest in. You can also upload “training” videos to help other investors and cash buyers. (Examples: how you create effective direct mail pieces or how to find the perfect rehab property.)
Even if you’re not comfortable making training videos, a simple “We buy houses [insert your city]” video that explains briefly who you are and the types of properties you invest in can be helpful. This type of video is a perfect way to drive traffic to your squeeze page.
Facebook is another place where you can post videos or even live videos. Make an exciting “housing alert” video that notifies your followers that you have a new property now available for sale. This helps create a sense of urgency in potential cash buyers, because a live video creates the feeling of, “This property is going to sell fast! If you’re watching now, move quickly!” (without you actually saying those words).
#4 DON’T UNDERESTIMATE THE POWER OF NETWORKING
As a real estate investor, you can’t live in a bubble. If you live in a bubble, you won’t succeed. Period. It takes strong networking skills to build a successful REI business – and a solid cash buyers list.
Check out your local Real Estate Investor Association (REIA) meetings. Talk with other investors and find out who are the biggest buyers in the area. Contact those potential buyers and ask to take them out to coffee or for lunch, so you can explain what you do.
Local property auctions are another great place to meet other investors and cash buyers. You can usually get a strong sense of peoples’ property preferences (say that 3 times fast!) at local auctions.
One other networking avenue to take advantage of is AI Office’s Power Matching feature. This allows you to “match up” with other active investors and cash buyers in your area who are also using this system. Think of it as a Match.com for investors.
#5 GET GOING ON DIRECT MAIL CAMPAIGNS
Direct mail marketing is a traditional but tried-and-true way to find interested cash buyers. But unlike the mail of yesteryear, which had to be handwritten and assembled in a time-draining way, today’s technology makes sending direct mail pretty simple.
In AI Office, for example, you can upload your cash buyers list and mail merge it. This allows you to send your cash buyers a letter or postcard when you have a deal that you want to market.
If you’re ready to build a successful direct mail campaign, it’s very manageable to start with a basic 5-week direct mail marketing plan.
BRING IT ALL TOGETHER
Remember: you don’t need to build a massive 10-page list of cash buyer contacts. That’s not the purpose of all these tips.
Your main goal is to build rapport and strong relationships with your core list of cash buyers. Once they trust you, and know that you’ll bring them solid, fair deals, they’ll be much more likely to work with you again – instead of another investor who they’re not familiar with.
So, start small, build solid connections, and watch your business grow from there.