Building A Database Of Buyers
By JD Esajian on June 10, 2016
One of the most important tasks of new investors, especially wholesalers, is building a database of buyers. The stronger your buyers list is the easier it will be to pass deals along when they come your way. Building your list is something you should spend time on every week. Every new investor contact you meet should be stored in a dedicated buyer’s database. You never know who your contact knows or what their level of involvement will turn into. The more buyer options you have the broader your property search can be and the quickly you can turn these deals over. Here are a few tips for building your buyers database.
- Collect Contact Information. There are several different ways you can meet potential buyers. Every deal you get involved in has a real estate agent, attorney, buyer and seller. These four people, or more, should get an email or phone call as soon as the deal closes. If you are not taking advantage of the people directly involved in the deal you are missing out. Regardless of who you meet you need to retain their contact information. Something as simple as a business card exchange can help get you started. Sending an email is nice but you should go the extra step and make a phone call. The buyers you work with are as interested in learning your personality as much as your business philosophy. They want to put a voice behind the name and expand on whatever conversation you may have had. The only way to do this is by collecting as much contact information as possible with everyone you meet.
- Develop Elevator Pitch. You should be able to clearly describe your business and how you operate in a two minute conversation. You don’t have to sound like you are reading off a script but you should have a brief pitch in your mind. Be prepared to talk about which markets and price points you are interested in. Have an idea of the numbers and what you bring to the table. You should make a list of ten questions you anticipate being asked by prospective buyers. Come up with a sixty second answer for each of these questions. Doing this will not only prepare you for anything that comes your way but it will put you in the best possible light. The more educated and professional you sound the more likely that a buyer will want to work with you. As much as you are trying to appeal to a buyer they are also vetting you based on how you answer.
- Build Your List. If you are just building your buyers list start by writing down everyone you know that may have an interest in real estate. The odds are that you probably have a friend, family member or co-worker that is curious about investing. Write down everyone you can think of and let them decide if they are interested or not. Most new phones allow you to store everyone you have sent an email to in the past few years, or possibly ever. Leverage your email list to briefly explain your position in the business. Describe how you have recently started investing in real estate and are possibly looking for someone to partner up with on the right deal. Leave your contact information for them to reach you or better yet ask if they can meet on a specific time and date. Building your buyers list doesn’t have to start with people you just recently met. Look at the people closest to you first and go from there.
- Set Up Meetings. There is a huge difference between discussing business over the phone and meeting in person. With every contact that you reach out to you have to set up a meeting. Your meeting doesn’t have to be an elaborate production. Something as simple as a quick cup of coffee is all you need. The focus of your meeting should be for you to discuss how you operate and what level of involvement they are interested in having. If you have a specific deal to discuss, great, but even if not you are looking to lay a foundation for the future. You should be prepared to answer questions but you should also have some of your own ready to ask. You should be prepared to put everything on the table now before you start working together. By the time your meeting is over you should have an idea of if you are a good fit together and if so what types of deals your buyer would be interested in.
- Specifics. With every meeting you have you need find out specific information. The quickest way to turn a deal over is by targeting what a buyer really wants. In your buyer database you should know what, where, when and for how much a buyer wants in a property. You should have all of this information, and more, in your excel spreadsheet saved on your computer. You should have an idea of which property makes the most sense for a specific buyer as soon as you look at it. By target specific buyers first you build relationships while simultaneously growing your business. A big, broad list is fine but it is better to have a few quality buyers you can rely on. The more specifics you know about them and their desires the easier it is to build your list.
Building a buyers list is something that won’t happen overnight. By taking actionable steps every week you can quickly accumulate a list you can lean on to help grow your business.