I spend a good deal of time speaking with different clients of mine. This is part of what I do, and enjoy doing very much. It is in these conversations that I learn what some of their unique challenges are.

Today I want to share with you one of those challenges and something that I believe can generate the biggest leap forward for you in your real estate investing success.

Many of my clients are new to real estate investing, or have been investing for a while and are looking for additional income. As many of you know I trumpet wholesaling for the new and experienced investor alike.

I do this for many reasons such as – low barrier to entry, no credit of your own needed, no capital needed, low to no risk etc. One of the challenges that aspiring wholesalers have is wrapping their mind around how they will find an investor buyer for the property once they have found the deal and gotten it under contract.

What I want to do here is turn that on its head. Rather than focusing on finding deals, start with focusing on building your buyers list. Your buyer’s list is the lifeblood of your wholesale business. Think MUCHO DINERO! aka – BIG MONEY…

Buyers come and go for lots of different reasons. Having an ever growing list of buyers salivating for your next wholesale deal builds a business that can last – and one that will get you paid FAST every time that you have a new deal to show them.

As an example, I used to have a very large property wholesale business that spanned multiple states. But it didn’t begin that way. We started just like many of you are today by wholesaling that first property.

The thing that I learned very quickly early on was the importance of my distribution list. I had a list of investors that I had been adding to a database. Initially these were people that I had met down at the Trustee Sales. It was a very small list at first…maybe 20 people.

When I decided to give wholesaling a try my partner and I sent out an email to these 20 people letting them know we had this deal and how much we wanted for it. We ended up getting 3 or 4 people interested in it and one person who gave us $5,000 non-refundable right away to secure it! A day later he came in and paid for it and we made a quick $5,000 wholesale fee profit! From that point on I was hooked.

We then began running a very small ad in the local real estate schools monthly magazine that just said “Buy Houses Below Market Value” and our website address. People would go to the website and we had them give us their name and email address in order to see our list of properties.

In the beginning we might not have even had a list of properties so we just said that they should check back regularly or wait to hear from us.

The important point to note here is that we were building a list without having any properties at the time to wholesale. The reason for this was that when we did get a property we got instant demand from our buyers list. In fact we would have buyers often times fighting over properties.

It is that sense of urgency in a buyer that makes the sale happen so quickly. And as long as you are supplying them with quality product that they can make money on they will come back to you over and over again.

You do not have to spend a lot of money to begin your distribution list. In fact you don’t have to spend any money at all. You can begin by going down to your local REIA (Real Estate Investor Association) meeting and networking, gathering business cards of those interested in wholesale deals. Also consider joining RE investor groups on LinkedIn. Both of these things are completely free.

Begin taking the contact info of each of the people that you meet who are interested in buying wholesale deals and start creating a database of these buyers. After you begin doing this then you can go and start finding deals. As your profits from deals start coming in you can take some of those profits and put it toward marketing to get more buyers.

Don’t ever stop building this buyers list. It will become the most valuable part of your whole business. In fact you will eventually reach a point like I did where I was wholesaling other wholesalers deals to my list for a fee! This meant I was making money on someone else’s effort. That is true leverage – and a REAL BUSINESS!

It all starts with that first step – getting that first buyer on your list. Take action by going and finding that first investor buyer today…you will be glad you did. If you have interest in learning more about wholesaling and how you can build a great business that can crank out cash to you month after month than check out this video that I put together.

As always feel free to leave a comment. Until next time have a great Memorial Day weekend!