Posted on: July 16, 2022
WI 993 | Buyers List

 

Just as important as finding sellers and deals is finding buyers for those deals. Today’s episode is fantastic for anyone looking for tips on how to start building a buyer’s list. Grace Mills is joined by her disposition manager, Christa, to discuss best practices when building a buyer’s list, how to properly use Facebook, and the most important metrics when it comes to your list.

 

As you’ll hear in this episode, having a strong reputation is critical when dealing with buyers. One of the most proven methods to not only attract leads but prove your reputation as a wholesaler is through radio. Check out our REI Radio 2.0 training for more info on how to start using the power of radio today.

 

Resources:

  • Want to learn more? Check out our REI Radio 2.0 program.
  • To speak with Grace or one of our other expert coaches, call (281) 835-4201 or schedule here.

Building An Incredible Buyer’s List

In this episode, I have a great conversation with a disposition manager. We’ve covered the basics previously. Maybe some of you have already got a basic understanding of dispositions, but I want to reel this back to focus on where you’re going to make your money and making the most money. That is in the buyers or your buyers list. How to find buyers, especially if you’re new, can be tricky to figure out and how to navigate with finding your footing. You can have all the greatest marketing in the world running. You can be on radio, do cold calling, direct mail, and you’ll end up with quite a few buckets of properties and sellers who are going, “I’m motivated. I’m ready to make a move.”

If you don’t know how to move those properties, you’re at a loss because the money again is going to be in the actual buyers, the buyers you find. Diving into that is how do you find those actual buyers? I pulled down again our disposition manager, Christa, here to share in terms of Christa’s background and what you should be focusing on. I want to make sure that you guys understand how radio can also help with that as well. Christa, would you say that there are maybe 1, 2, or 3 things maybe someone should be focusing on as a new investor? What basic understanding do you think that they need prior to finding those buyers?

The whole thing about wholesaling is it’s right property, right buyer, right time. You need those three things to come together. To put that right buyer, the one who’s going to pay you the most money for this property is to have a wide net. The larger your buyer’s list, the easier it is to find that buyer for the right property at the right time. We know from investing that people will buy properties.

They’ll flip them and then they’ll look for another project, but you can’t always count on a couple of people being in the right position to take on the properties you have under contract. The larger buyer’s list, the easier it is to move your property. The management of buyer lists breaks down into three parts: getting the names for your list, compliance with those names, and using metrics to improve your list and do the most efficient marketing you can with the most information you have.

You have to figure out the names of those actual buyers.

The easiest way to grow your buyers list is for people to get to know you and they start calling you and saying, “Can I get on your list?” That’s great. That means that people notice you and realize you have a good product to push. It’s usually word of mouth. All wholesalers and investors tend to know each other in your area. Once you get under one person’s radar, they’ll be like, “I’ve been looking at this one wholesaler.

The whole thing about wholesaling is focusing on the right property, the right buyer, and the right time. You need those three things to come together.

They’ve had great prices in the areas you’re looking at. You should get on their list.” That’s one way. When they opt-in, usually, you can do it from a website. That’s easier. You can always direct people to your website to join your buyers list. You can put something at the bottom of your marketing. “Do you want to be on our buyers list?” We know people forward marketing flyers to others. An easy way to gather names that way is to have them opt in from a website.

Another way to get names is to have you part of an active Facebook group. You can say, “I have a growing buyers list. Who would like to be on it?” You’ll be surprised at how many hundreds of people are in those Facebook groups. They want to be on everybody’s list because they’re looking for the best deal.

There are many different Facebook groups out there and it’s free to join. It’s free to jump in there and join. You can join multiple actual Facebook groups. There are some Facebook groups that are nationwide and open to wholesalers, investors, and real estate entrepreneurs. There are those that are a little bit more state-specific. You could probably find a California wholesaling group or a Texas wholesaling group.

Even the groups that are a little bit more specific and more city-based or cover a particular region or metro area. There are a lot of options. In your experience, was there one type of Facebook group that you found that worked well, or is there a certain way that someone maybe even needs to approach their messaging within that Facebook group that could help or hurt their chances of building the list once they’re there?

First, I wouldn’t limit yourself to just Dallas’ Facebook because we have buyers who don’t live in Dallas, but there’s a good return on investment there. They may be based in several cities. We have one buyer who represents fifteen investors out of China and is looking in several major cities. Don’t limit yourself if there’s an area, a larger Facebook that covers maybe the Southwest if you’re in Arizona or the Northeast. Think big because people may be interested in your area and you’re giving them an opportunity to see what you have to market.

As for the message and Facebook, I would be honest. I am a wholesaler. I have great properties. I want to move them quickly. Who wants to be on my buyers list? Maybe I’m in the St. Paul area or the Chicago area. Not everybody wants to see everything, but you’ll get, from 1 message, at least 25 names. Again, it’s word of mouth. Those 25 people tell 3 people each or forward your flyer and people go to your website to join. Those 25 people turn into 75 more people. Your list grows exponentially and quickly.

WI 993 | Buyers List

Buyers List: Don’t limit yourself. Think big because people may be interested in your area. Allow them to see what you have to market.

 

Even then, I’d say, in plenty of wholesaling and real estate Facebook groups, before even meeting to throw that message out there, you could scrub it. Some people have already left some of their email addresses already there. That makes it maybe even like a soft intro where you could PM them directly because they’ve already dropped their email addresses under someone else’s content already looking for properties.

It might be even a warmer relationship for you to be able to build because you see that person is already actively responding to other people in the Facebook group and looking for properties. You replied to such and such as post, like, “I am a wholesale on XYZ area. I’ve got some properties that I’m looking to move on as well. I’d love to add you to my buyers list as well.”

Asking permission is the soft part of compliance. You always want to make sure you have someone’s permission to add them to your list.

Why would you say that that becomes problematic? If I’m a new investor and I’m looking to build up my list and there are already email addresses sitting on Facebook, why would it be problematic for me to collect those emails where I found them and add them?

There are developing regulations against that, just like with cold calling. If you add someone to your emailing list and they report you as spam, it’s going to cause you problems in the long run. Maybe your marketing program will not let you send out marketing flyers, or maybe your email provider cuts you off. The ability to get people’s permission and have them do the signup like through your website or raising their hand in a Facebook group cuts down on future problems. Going through and taking emails without permission will grow your buyers list, but it will also raise your spam reporting and people will not engage.

I can understand that. I’m glad you hit on the regulations piece. In this ever-changing market, especially state to state, every state is starting to handle wholesaling and investors differently with the way that you’re communicating, the type of marketing you’re doing, the number of transactions you can or cannot do with or without an actual license.

If wholesaling is something you’re looking at growing long-term, you want to go about it as ethically as possible.

You’re trying to grow it as an actual business while you’re not trying to come in and only make 1 or 2 checks. If that’s the case, you probably are the type of person to not care. Although a kid still affects you legally on that side, but if you are looking at this and going, “I could make this into something. I want to grow my wholesaling business. I want to maybe expand into rentals or build my rental portfolio.”

Whatever that looks like, if you know that you are looking at real estate as a long-term move for you, then this is something you don’t want to gloss over. In that case, it does sound easy to jump in and get started by collecting a couple of emails sitting in there. To Christa’s point, you have to be careful with the way things are becoming a little bit more regulated. In terms of wholesaling, everyone wants to move into ethical wholesaling, doing it the right way. Is there anything you can add to that?

I am going to add that don’t discount newbie investors. I adore newbies. They always pay top price. It’s those experienced investors that want to haggle down the price. Don’t disregard Facebook groups that are for newbies. Love newbies. Newbies are your best friend. Also, they’re the ones that are going to openly share with others. A doctor wants to invest his money, so he’s getting his toe in the water. It’s his first deal. He sends your flyer to all his doctor friends. Again, it goes back to that networking. If they are opting in, it falls into that compliance piece that makes your life easy.

If this is something you’re looking at growing long-term, you want to go about it as ethical as you can, as the ever-changing laws and regulations. You don’t get yourself caught up in a bad net. There are buyers out there who are happily opt-in to your list. If you already noticed on Facebook, they’re already actively responding to everyone else. That’s no different. That means for the buyer that there’s another opportunity for them to make additional money by grabbing on to other properties but not missing out on being on someone else’s buyers list.

There’s no fee involved for them. It’s no risk to the buyer to opt-in and start receiving some updates from you and what’s on your actual list there. I know you said the third piece of that is using metrics. Let’s say if someone was sending out flyers, are you looking at the metrics from that standpoint? What metrics are you sizing up in this process?

Looking at metrics, using a program that tells you how many people have opened a flyer. Maybe you pull your last five flyers and pull all the names of people who didn’t open and then you target them specifically. “We added you to our VIP list. We have this hot property.” Anything to engage with your buyer. Metrics allows you to do that. It sees who’s opening. It sees how long they’re looking at it. You can come back to that information and begin to cultivate your buyers list.

WI 993 | Buyers List

Buyers List: Radio is an excellent way for you to find buyers. Radio is humongous for credibility.

 

Maybe you want to look at the metrics to see who opened property for us. It would maybe be Arlington. I can see everyone who opened a property in Arlington. I then have a property in Arlington. I can target those people specifically. If that is their area of interest, they’re willing to pay more for a geographical area that they’re interested in. Metrics can help you make more money.

As people are building their lists for the first time, now that they have those three things out, like, “I need to find the actual names of people to collect.” Make sure that it’s still compliant. Get them to opt-in, which is super free. “I’m a wholesaler in the XYZ area. I got some properties. I’m looking to move them quickly. Who wants to join my actual list?” Easy peasy. You get them added. Where are they potentially adding it? If I’m doing this for the first time, why would a spreadsheet not be a good idea? Why wouldn’t I keep them on an email tab? What is the best place to plot these things down in so that I can see and track metrics?

The program we use is ActiveCampaign. We can add people. We can build different lists. I can target them. I can pull everybody who opens an email in Arlington or people who haven’t opened an email in six months and build separate lists off of that. We find that ActiveCampaign works well for us in that aspect.

Not only are you able to target it by area, but you can also do certain properties. If you know that there are buyers on your list that love rentals, you got your hand.

We’ve done that in the past as well. We’ve got a property that has a renter in it with a long-term lease. We know who’s interested in that. We have a separate list for everything. I have a list for people who only buy single stories with doors facing West.

That’s targeted.

Don’t ever turn loose a number or an email address. Continue to build, and use your metrics to cultivate your best buyer’s list.

When I get a property that meets their qualifications, it only has nine names on it. I can quickly pull up that, send them a special flyer, and probably get top dollar without even doing a show.

I love what you said earlier about you wanting to make sure that you are casting a wide net there, which means you’re constantly building up that list. If I’m using you to build metrics for the first time, what metrics should they be looking at in terms of, “I’m getting started for the first time.” Is there a number of Facebook groups at a minimum, they should, “Today, if you can, stop, go ahead, and join ten Facebook groups. Make sure that you join at least ten per day. By the end of 30 days, they should have a list of XYZ numbers?” Is there a metric that they can at least follow to get them started?

It’s where you’re comfortable. A lot of people would hear joining ten Facebook groups a day is overwhelming. If you’re starting out, find one Facebook group that’s active. I would look and see, make sure there are active people in there. Also, look at the number of people. If there are ten people, why bother? If there are 250 people, it’s worth your time. Go in. One a day. Introduce yourself, saying what you’re doing, saying, “I’m building a buyers list. I’m targeting this area. Who wants to join?” It doesn’t hurt to ask. People will raise their hands.

As you get started, the metric you want to watch, of course, is open rate. If you were limited, as you start out, how many marketing flyers you can send out maybe based on the program you’re using, then cultivate it. If they don’t open three flyers, move them to an archive list. Never turn loose of them. It goes back to right buyer, right time, right property. Maybe those people, it’s not the right time for them. Don’t ever turn loose of a number or email address. Continue to build, but you want to use your metrics to cultivate the best buyers list you have

I know we talked a lot about the different ways that you can potentially pull in a buyer. In your experience with your actual list, did you find that there was a source that pulled in a better quality of buyers and maybe even a buyer that had more access to funds? Was there a particular source that you would say is probably one of your go-to sources that ended up helping you y build up a quality list?

The quality buyers we’ve gotten have come from referrals, someone that bought from us or someone who’s been on our list for a while, saying, “I work with Christa over at Cosa Investments. You need to get on her list.” Those are the best quality. Quality comes from people who come to us. They can’t come to you if they don’t know who you are. That’s where those Facebook groups come in, getting your message out, which you do with radio. People have to know your name. Maybe they’re not selling a home, but they’re always interested in buying. They’re going to hear your radio ad and they’re going to want to be on your list because this person is advertising on radio.

WI 993 | Buyers List

Buyers List: If you want to maximize your actual profits and opportunity from the leads you’re already generating through your marketing, make sure that you’re building up the quality of a buyer’s list.

 

Radio is another great way for you to find buyers. I know that sounds crazy. “What? I can find buyers on radio?” Yes. Radio is humongous for credibility. A part of those referrals is the fact that there is credibility involved. They’re getting a referral from you, from someone they trust, who already worked with you so that they verify that you’re credible and trustworthy to work with those buyers. Radio is the same way.

You’re going to take advantage of the fact that those stations have been established for so many years. You’re going to go in and advertise on those stations and borrow some equity in terms of their crediblity to build up your own. When people hear you on radio, they’re going to go, “If they’re on radio, I know they’ve to be legit. If they’re on this station, the station that I’ve been listening to for XYZ amount of time, I know it’s something to take seriously because they’re advertising on this actual station that I’ve been listening to.”

Buyers are no different than sellers. A seller is going to feel super comfortable giving you a call and going, “I’ve got a property to sell. I’ve heard your ad that you buy homes for cash.” Naturally, you can pick up a buyer and they go, “I’ve heard your ad a few times here. I figured if you’re buying homes for cash, you probably have a list as well. Is that something that you can get me added onto?” That definitely happens quite often. They happily call you to say, “I’ve heard you quite a few times,” or they’ll assume that you’re a big player in the market as well. I’ve heard that.

“Now that I’ve heard you on the radio, I wasn’t super familiar with you before, but you’ve got to at least be a big player if you’re on radio. Is there a list that you can add me on to? I’d love to be a part of your network.” With radio specifically, let’s say you genuinely like, “What if I only want to use radio to purely drive my buyers list up?” You can do so. It’s no different. You are still going to pinpoint a target audience that puts you most likely in front of the most buyers as possible because those demographics are slightly different. Sellers that want to sell their homes for you for cash are one type of person.

If you’re like, “I want to 100% own this as a process to find as many buyers that I can,” do more radio. Pinpoint a target audience. You’re going to slightly tailor your message similar to what Christa had mentioned of that line you’re going to add to the bottom of your flyers of, “Please, forward this over. If you are not on our actual buyers list and you would like to be added on, please, reply back, or at least subscribe to the actual flyers or sign up here to the buyers’ link.”

You’re going to do the same thing in a radio ad. You’re going to point out who you are and roughly where you’re at and what you do and then go, “I’m always looking for buyers, vendors, contract,” whatever it is that you want to specify in that message. That is a great way to add buyers to your list as well. It all still compounds. A lot of those referrals get built up. That’s why a lot of the quality buyers in Christa’s experience that she has pulled in have come off of those referrals, but you got to at least get your toe out there and get started, so people know that you exist.

There’s value in building relationships. If you build the right quality relationships, the money is there.

You can’t build the buyers list if nobody knows who you are.

They got to know who you are, what you do, where you’re at, and how to get in contact with you or how to get added to your buyers list. Jumping into a Facebook group going, “Everybody, I’m a new wholesaler.” Leaving it, there is not going to help you. Where are you wholesaling? Is there a market you focus on? Is there a type of property that you have a specialty in? Are you just casting a wide net? You have to let people know who you are, what you do, and how to get themselves back on there.

That is where you’re going to get your max profit. For Christa, I wanted to figure out where it’s the best source because buyers have money, but their access to funds will vary there. If you want to maximize your actual profits and get the max opportunity out of the leads you’re already generating through your marketing, you definitely want to make sure that you’re building up as quality of a buyers list as possible. Before we wrap up, are there any pointers or last notes you think that need to be understood in terms of this process.

People fail to see the value in their buyer’s list because every buyer on your list is money. It’s like leads. It’s just in a different form. You need to respect that list and cultivate it and care for it like you do a seller’s relationship.

There’s value in building relationships. If you build the right quality relationships, the money is there. If you start off with just chasing it purely at a dollar, you don’t care to be compliant. You don’t care how you’ve been presenting yourself. You’re going to end up getting a bad rep and losing some credibility there, which again hurts you on the backend. 

We have run into investors that we won’t do business with again. We value our reputation. We don’t want to be seen as purely predatory. People tend to see wholesalers that way. We’re in business, but we want to do good business. That starts with who we do business with.

You got to value relationships and value doing good business. As with the quality, we’ll go from there and your ability to maximize your profits. This is a great conversation, Christa. Thank you so much for hopping on to talk about this with us. Shoutouts to you guys out there in the Rhino Tribe. We love being able to hop on and provide as much value as possible to you, guys. This was another great conversation.

Radio is the one marketing tool that everyone knows about when no one is using it. There’s little competition. It’s not the first thing that people think about when they go, “I want to grow my wholesaling business and generate some leads.” A lot of people miss the fact that radios are a great inbound marketing channel that’ll have those leads calling you for once. If you are more interested in finding out a little bit more info about it, feel free to jump over to the website. That is WholesalingInc.com/radio. We’ll catch you on the next episode.

 

Important Links

 

About Grace Mills

Grace Mills is the coach of REI Radio. She has worked side by side with Chris Arnold during the initial program roll out, coaching & fulfilling student needs. For almost 8 years she’s managed and directed all marketing channels and split tested every element of Radio to help investors set up Radio in any market they choose. She has worked with investors & agents all over the United States and has helped many investors make thousands of dollars using Radio.

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