This Has Been Asked, But I Need More Details On Buyers List..
Ok, so I've done searches on these forums to find out how to build my buyers list. The answers are sort of obvious in that a) an ad will get you some calls and b) networking with other RE professionals and REI club members might also help.
That said, I am new investor starting an aggressive direct mail campaign. I want to specialize in wholesaling and foreclosures. I would like to know if there is a place within this site where I can inquire about private investors (cash buyers or strong borrowers) that work the New York/New Jersey area.
My direct mail campaign will consist of 2 mass mailings of 425 a piece, so I'm bound to get something out of it and want to be prepared.
thanks for your help,
Camilo
Camilo,
I am in the NJ area and am looking for property for on going cashflow so I would be a potential buyer.
I am interested in your directmail efforts though because my background is marketing and with directmail response rates are pitiful even for the best of us. So if you need to bounce ideas around then say hello.
Layne
My mailing experience to home owners has been that for every 400 letter I get 6 phone calls, two of which are serious, and I buy one house at a decent price.
Brenda
Hi Camilo,
I live in NYC and do rehabs if you find a wholesale deal I would take the time to look at it, obviously if the numbers made sense. So I guess I am one more name on your list ....
Camilo,
Building a buyers list can be a long and lengthy process.
Wholesale, Call the we buy houses ads, and go to the local Real Estate Investors Association meeting if there's one, If not, find the nearest one and start going to meetings. Mingle with the others there. Find out what they're looking for. Get as much info on your fellow investors as you can. When you acquire a property that meets someone's criteria, call everyone on your list that is looking for that type property. That's the easy one.
Retail is a lot more difficult. Well, not really, it just takes more time and consistent effort to cultivate a list for retail. When you have a property that you can advertise for sale, collect info from the responses to your ads. Capture the names, phone #'s, area of town they prefer, how many BR, how many baths, price range, how much cash could they put down for the right home. How soon would they like to move etc. All the things that they use to describe their perfect house. Prioritize them, 1-10 or what ever system you want to use based on your belief in their ability to actually buy a property. As you acquire properties, review the names of those that are on your buyers list, Call them. Let them know that you may have found their next home. Place another ad, and capture more names and information. and repeat the process. About every quarter or 6 months max, contact everyone on your list, and find out if they are still looking. Has their criteria changed? Anything else that can help you find the right home for them.
Not very romantic, or fast, but well worth the time and effort. Get referrals from everyone you help along the way, even if you offer to make a house payment for them when one of their referrals buys one of your properties. It's money well spent, and you have instant credibility with their referral.
Jeff
Fantastic! Thank you all for responding. Unless anyone objects, I would like to PM you individually and get your contact info so I can get in touch when I have deals on the table.
Layne:
You say your response rate for direct mail has been pitiful. Could you share with me in more detail what you've done (quantities, type of mailing, etc.)?
Brenda:
Your response rates seem in tune with what I expect. My hope is to get 10-15 calls for every 400 letters. Then boil down those 10-15 to about 3 serious offers and walk away with one. The other 2 go into a "follow-up" file—they are not off the hook yet.
Now, the 6 calls you mentioned, is that based on your first mailing? How many times do you send follow-up mailings to the same list? My intent is to follow up with the same list for up 5 times. Response rates are supposed to increase to 80% after the fourth contact.
Jeff:
Thanks for the info. Became a member of LIREIA last month and have been going to club meetings and seminars regularly. In fact, last night I attended a very informative foreclosures seminar. Even got someone to add to my buyers list.
In terms of retail, do you mean I should post an ad on the paper asking people to leave info for me if they are interested in buying a home? I am assuming we would be dealing with the end buyer/homeowner in this case, correct? If so, could you point out some ad copy examples I could use.
I am starting to get really excited about real estate investing. It seems like things are starting to come together. Now, it's just a matter of getting my marketing out there and fielding potential deals. Thanks again to everyone for helping out.
Camilo
Where are the best buyers in a town without an REI club?
Alan
Yes, I was referring to the end buyer. however, I'm not telling you to advertise for buyers. you're advertising houses that you have equitable interest in with the intention of selling them. Building the buyers list is a benefit from collecting information about the calls you get in response to your ad.