Sources Of Buyers

All the strategies for purchasing, contracting, flipping and wholesaling are useless if you don’t have a ready-made market to sell the property. From the minute you begin negotiating to purchase, control and acquiring property you must begin marketing property to the public. The sooner you have a number of individuals asking you to find them properties the better your production will be. Consider a few starting points for your success: Review potential buyers Begin by asking yourself, "Who do I know that may be interested in buying or investing in real estate?"

• Fellow real estate investors (most have a list of applicants)
• CPAs, accountants and business associates
• Property management firms (may have access to investors or buyers)
• Realtors or brokers
• Doctors
• Attorneys
• Engineers
• Other professionals
• Investment counselors
• Nothing down investors
• Fix-up investors
• Stockbrokers
• Corporate executives
• Successful business people
• Your relatives
• Your friends
• Your boss
• First-time home buyers

Secondary Sources Subscribe to a variety of real estate publications and look for individuals who are actively investing. They may know of buyers or invest themselves. Generating New Sources

1. Civil and social activities
2. Banking contacts
3. Advertising
4. Newspaper advertising
5. Bulletin boards
6. Free paper publications

Bird dogs A bird dog is anyone who can help you find investors or buyers. You may create a reward system for people who bring you qualified clients, such as a percentage of the potential profit or a finder's fee. I offer my bird-dogs $500 to $5,000 per deal but they must do the courthouse research for me and are paid upon close. Most first-time home buyers lack money, have limited funds for a down payment and closing costs in today's market and they are not familiar with the real estate process and need your help. As you build a database of buyers, take the time to gather personal information and qualify them with a lender. Generally the purchaser will need:

1. Down payment: required minimum 5% of purchase price
2. Income and job stability
3. Must have two years employment in same industry
4. PITI Payment=28% of gross income
5. Credit – Willingness to pay Must not be late on any payments No Bankruptcy No Foreclosure
6. Total Debts inclusive of mortgage payments, secured an unsecured debt not over 30% of gross income
7. Satisfactory rent history
8. Additional cash (for closing costs and utility deposits)

If I am unable to qualify them with a lender I will look into a lease option purchase or owner carry back for them. I focus my rate at 2 to 3% above current market rates and normally sell the subject property at retail. Key factors I look for in a customers is reliability, ability to make the payment and a vested financial interest in the property from 5 to 15% down. I find a ready buying market with damaged credit and in need of creative financing for homeownership.