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Wholesaling properties is easy, once you learn the ropes. For new investors (and even some seasoned investors), the technical issues of flipping properties, like building a real estate cash buyers list, can get in the way of success. Sometimes all it takes it to hear a "nugget" of information to make you leap one more step ahead into real estate becoming your career.
Maybe you need help dealing with sellers who are pissed off because you mailed them a yellow letter. Or maybe you don't know how to build a real estate cash buyers list without using Craigslist (BURNOUT)......This video will give you some definite property investment advice on how to do these thing! Enjoy.
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Has some very intelligent guru told you that you need to build a real estate cash buyers list BEFORE you start marketing for seller leads? Maybe they said that you need to know what kind of properties your buyers want. That way you can "target" those kinds of properties for them, right? What a crock of shit.
Here's the secret sauce to being a real estate wholesaler. The money is in dealing with the SELLERS! If you're able to quickly and efficiently identify a motivated seller, analyze the deal, negotiate a good price and get a contract signed then you have nothing to worry about.
The buyers will be falling at your feet to take that property off your hands.
Some of us are old school real estate wholesalers, who are stuck in our unproductive methods of marketing for real estate cash buyers for wholesale deals. It's time to change that with some new age techniques that will WORK in Marketing for cash buyers!
Let's go back in time for a moment (or at least dive into some of my email marketing accounts and see if they look like yours).
Traditional wisdom makes us want to add all of our real estate cash buyers to an email list. This list grows and grows by leaps and bounds until we have a giant list of tire kickers. YAY sounds fund, right?
Maybe you're even like THOSE GUYS in the WHFT (Wholesaling Houses Full Time) Facebook Group that announce they have a list of 30,000 cash buyers. ROFLOLOLOLOLOLOL. Don't get me started on that topic. I'll save it for a day when I have severe PMS so I can ream him a new ass.
OK, so we have a nice "healthy" real estate cash buyers list, all entered in our email marketing software database. Then it happens.
You want to sell it by the end of the day and get this thing to the closing table.
SIDE NOTE: What do I mean by HOT DEAL? I'm talking about a house in a nice neighborhood that will sell to a RETAIL buyer. Once they rehab it (not BAND AID it), pay closing costs and even a Realtor commission, they'll be left with a nice profit in their pocket. That's what a hot deal is....
So, you have a hot deal and you want to tell your real estate cash buyers list about it. You open up your email software and create a new Broadcast email. it could be MailChimp, aWeber, Zoho Campaigns, etc. Whichever one you favor. You create a beautiful email with a fantastic headline and full color photos and MAYBE even a link to a YouTube Video that you made.
Guess what happens when you send this email to your of real estate cash buyers list? Only a small percentage of your list will open it. And just because it gets opened doesn't mean it gets read.
Here's a screenshot from one of our Email Marketing Accounts (MailChimp) with the open rates over the last several deals that we've sent out.
This list that we have in MailChimp is an older, more of a rusty old washed up real estate cash buyers list. We still send them emails because they might actually buy something, but I doubt it.
This one is a little different as far as QUALITY. These people are actually "VIP Buyers" or buyer leads that have been added to our list in the CURRENT fiscal year.
The open rates for these buyers are much higher (obviously) but still not 100% open rate. Even on houses in GREAT locations.
So what is the solution to this? What should you do if you want all of the people on your real estate cash buyers list to see the house that you have for sale?
The answer is some new age technology : SEND A TEXT MESSAGE!
I started using CallFire.
Call Fire is easy to use and has a lot of features that can be very helpful to us real estate investors. I've made it part of our marketing process to send out a text message to our buyers list via TEXT. The buyers that are in our CallFire account are the same VIP and current buyer leads that are in our CRM. Every new buyer that makes it through our stringent pre-screening process gets added to the list with email AND phone number these days, so that we can deliver messages to them about our properties.
Take a look at the screenshot from a recent text message that was sent to our VIP real estate cash buyers list. Notice that the REPLY rate is 17%, which is the same as the Open rate on a regular emails. So by using text messaging as a method of broadcast...
This is a task that your Virtual Assistant can easily do for you as part of your regular marketing process for new properties. You'll get INSTANT gratification with text messages, and if you have a HOT DEAL, then people will be buzzing around that house within hours.
I'm not saying that you should ditch the email marketing. It's not quite dead YET. You have to remember that people are all different. Buyers that may respond to emails may not respond to text messages, and vice versa. Some of them may not respond to either. you may have to actually pick up the phone and call them personally (imagine that).
Either way, the more value you can add to your business by using a highly deliverable and responsive method to your cash buyers for real estate investing, the better off you'll be. Text messaging is definitely the new age method of marketing for cash buyers.
How to Build a Buyer's List: You can have a real estate investor buyer's list, and then you can have a REAL Buyer's list.
A "regular" wholesale buyer's list would be one where you just have names and email addresses, but you don't know who those people are, and you haven't had any personal interaction with them.
A V.I.P. Buyers' list is one that you've collected some detailed information about your buyer, and what types of property that he/she is interested in buying. These are the buyers that should be contacted FIRST when you have a new property for sale. You can get specific with them, since you know more about their criteria, and their business model.
This video will show you a quick and easy way to build a V.I.P. Buyers list, without being too intrusive, and without having to get on the phone and waste a bunch of time with tire kicking buyers. It's simple! I actually sent this email out to my email buyers list at 2:59 PM EST on May 20, 2014 - and well, you can see the results that I got within 10 minutes from 3 more V.I.P. Buyers. Now you go do this, too!
At the end of every year, Dan and I scour through every little detail of our business to see where we can make improvements. We open up our CRM and start analyzing the crap out of everything. Our marketing campaigns, the transactions that we closed, our cash real estate buyers list, the people we dealt with, and the processes that we used to make it all happen.
We usually end up make the same realizations over and over...and over and over again.
Here’s just a few of the things that we see EVERY YEAR:
#1 , #2, and # 3 are pretty self explanatory. Let me explain what I mean by #4 a little further so you know what I REALLY mean by that.
We added Derek to our team in January of 2015. He's responsible for building a real estate cash buyers list, marketing our properties to them, and maintaining everything related to the "back end" when it comes to getting houses sold (photos, lockboxes, signs, etc). We added Derek to our team in January of 2015. He's responsible for building a real estate cash buyers list, marketing our properties to them, and maintaining everything related to the "back end" when it comes to getting houses sold (photos, lockboxes, signs, etc).
Every time we got a new property under contract (GOOD DEALS, mind you), each one of these 400 people would get several notifications about the property. He sent voicemail broadcasts, text messages, emails, and promoted posts on Facebook to these people. He'd do this multiple times during a contract period trying to sell them a house.
This started to get frustrating, and even had us wondering what the hell we were doing wrong. how could we get such a good deal and not a single person was interested.
What we discovered was that the 36 houses that we sold in 2015 were bought by just 11 buyers. Which means that on average, each buyer bought 3 houses from us. That's not exactly how the numbers played out (some buyers bought 5 houses, some bought only 1 house) but you know what I mean. We still only had 11 buyers that made it to the closing table.
How this translates for us is that those 11 people are HIGHLY Valuable to us and our business.
Look, if you've never met me before or this is the first time you're reading my blog, you must know that I HATE wasting my time. Any amount of time that is wasted just pisses me off. So I’m constantly looking for ways to maximize my time and be the most efficient person that I can. Same goes for my team.
So I deleted every buyer on our list except those 11 people. Yes, you heard me right. I deleted them.
If they haven’t bought a house from us in the last 12 months, then they probably never will. They’ve seen every deal that we’ve had for the last year come across their desk, and they’ve not stepped up to the plate. I don’t want to waste my time with them. Goodbye forever! I won’t miss them. Not even for a minute. They don’t deserve to be on my list. Only the people that actually BUY houses.
They’ll get added to our list just like before. They’ll get our text messages, emails and phone calls just like everyone has. They get a fresh chance to buy one of our houses in 2016. We’ll reanalyze the list of buyers again in December 2016 and see who was lucky enough to stay on our list. Then we’ll delete the rest.
I think this was a progressive approach to relying on a giant list of shitty buyers to make offers on our properties, and our team agreed.
Now that we’re down to a REAL real estate cash buyers list of 11 individuals who are actively purchasing properties in Freakville, we can spend more time learning more about them, what they buy, how they like to operate, their exit strategy, and make very specific calls to them when we have the house that we know they want to buy,
I’m pretty excited about this! My 2500 CallFire Credits are going to last a lot longer now.
On our daily marketing checklist for today, we sent out an email broadcast to the 3 buyers that have made it onto our 2016 list. They officially have 11 months to prove themselves as being REAL buyers, or they can kick stones right off of our list.
The lesson here: Don’t be overly excited when you have a “real estate cash buyers list” of 1,000, 2,000 or 3,000 people. Chances are they won’t ever buy shit. When you can really get excited is when you have a handful of people that know you, like you, and trust you enough to do business with you and have a bank account full of money.
Property M.O.B. specializes in wholesale real estate investing and automated real estate systems that save you time and money. If you want to learn how to build a real estate cash buyers list, we are your go-to source. Our online community is used by hundreds and hundreds of real estate investors to help with scaling their businesses. We have the real estate mentorship and coaching to get your real estate business to the next level. If you have any questions about real estate cash buyers lists or anything else involving wholesale real estate, contact us today!