Tuesday, June 22, 2010

Finding Buyers for your properties

It seems that I hear a lot of people these days who can get contracts on properties because sellers are desperate these days. However, they have problems finding good buyers with money to purchase the properties. Here are a few tips to find good buyers for your wholesale properties.

1. Go to your local housing authority and get a list of the section 8 landlords. Call the list. Yeah, I know -- calling people out of the blue is hard. But, you know what? If you are going to be a success in this creative niche of the real estate investing business where you aren't using a lot of your own cash to buy and hold properties, you're going to have to do some things that take you out of your box. Sometimes, you're going to have to cold call people. You're trading your previous comfort level for success. Get over it. Get on the phone and make the calls. Not only will you find some great cash buyers who want more rental properties, you'll find some landlords who HATE what they're doing and who will be willing to sell you their properties. GREAT situation -- finding buyers and sellers from the same list!

2. Get yourself to your local REIA meeting! Real Estate Investor association meetings and network. Talk to the president of the group. They will know who the players are and if you come across well, they will be thrilled to introduce you. Be friendly. Find out what is important to them and offer to help them with whatever it is. Follow up! I have met so many people at REIA meetings and hardly anyone actually bothers to follow up. That's great news for you. If you actually follow up, you won't just be one of the herd, you'll be unique and you'll be building yourself a good reputation.

3. Get a list from one of 3 places: Your title company, your MLS or RealQuest. Ask for a list that includes the following:
People who have purchased in your area
in the past 6-9 months.
Non-occupant owners
Loan balance = $0
Purchase price = whatever price range you want to sell it at
Get all the details that the list provider can give you
Realquest will be the most expensive of these options, but they include information that covers 97% of the properties in the U.S. If you can't get the information through your title company or your Realtor's MLS, they are a good option. And, isn't it true that it's worth paying a few dollars to get a list of solid cash buyers who are purchasing right now in your area?
Now, go buy a house!

Christy Mellott
Millionaire in Training, www.MMMChallenge.com