Short sales success: how to build a pool of buyers
Short sale opportunities abound in the real estate industry. There are literally tons of deals out there just waiting to be made.
2 April 2023
Unfortunately, if you’re not prepared, you could still come up short because you don’t already have a buyer in place for your deal. You must have buyers waiting to take part in your next short sale deal.
Many beginning investors believe that they need a whole list of people on their buyer's list. That’s not the case. You just require a few people who are ready to buy. These people have the credit and cash and just waiting for you to find them a good deal. But where do you find them?
Family, friends, and your circle of influence
You already have a large list of potential prospects with your family, friends, co-workers, and people you see every day. Write their names down even if you think you’ll never sell to them. In fact, this brings me to another point – don’t prejudge anyone. You never know what situation your prospect may be in. Just write their names on the list, so you can qualify them as a lead later. One of the added benefits of this group of potential prospects is that you already have a relationship with them. Real estate is a people business and whether you want to believe it or not, relationships matter.
Local real estate investment clubs
Local REI clubs either have a potential buyer or knows of potential buyers that you can access. Give them a call and find out when their next meeting is. Ask to see if it’s possible if you can promote the deal you’re working on at some point during the meeting and make it a point to answer any questions that potential prospects may have.
Social networks are the staple of the internet for most consumers who are online. Interact with other investors on business social networks like Facebook or LinkedIn. These networks are among the top sites for lead generation and working with other investors.
Once you’ve built up your list of potential prospects, it’s time to qualify them to see how ready they are to buy a real estate investment. Start by calling all your potential prospects. Let them know you’ve just started a real estate business and find out if they have any plans to purchase real estate in the future. Ask your prospects what type of property are they looking for.
Once you have that information, classify your prospect into three different categories: hot, warm, and cold. Hot prospects know what they want, and they have the capability to enter a deal within the next two to four weeks. Warm prospects have some idea of what they want, but need some time to prepare for the purchase. Cold prospects aren’t sure what they want to buy. They may say they’re ready, but they aren’t really.
Once you’ve got a few hot buyers, it’s time to start looking for short-sale opportunities. Make phone calls and place ads that let others know you can help them with their short sale. You might even consider putting out signs and posting flyers in residential areas to gain some attention. Then start working on your short sale deal – analyze your property and present a valid offer.
Short sales success depends upon you having a ready pool of buyers that are able to purchase when you find your next deal!