In another article I mentioned using other investors’ inventory lists to make a buyers list of your own. The basic theme was to get on as many wholesalers’ lists as possible and track their property sales in the public record. The buyers of these wholesale or retail properties were then turned into members of your buyers list. As part of your buyers list you should also include retail buyers who can be landlords as well as end-buyers who will investor email list be living in the property. Landlords will generally pay more for a property as it produces almost immediate income. Always remember perspective landlords buy based on the income produced not the rehab potential or because they want to live in the property. End buyers buy more by emotions so your profit margins can be the greatest with these buyers if your property needs minor work, you rehabbed it, it has a great location, you supply financing for the buyers or if you have a powerful marketing system to sell the property very quickly.
So let’s look at a sampling of the data that I gathered over a 103 day period from seventeen different wholesalers who sent me 167 emails. There were 17 different wholesalers but a total of 23 individuals who sent emails with six investors simply copying other investors’ lists. The total number of properties emailed to me during this period was 367 after eliminating duplicates. These properties were tracked in an Excel file where duplicates were eliminated and the rest were reviewed bi-monthly to see if they had been transferred to end-buyers. This is not an exceptional number of offerings in our area but it could seem astronomical where you live. Don’t worry; just get on more wholesalers’ lists if you can. If you can’t find these elusive wholesalers, look for them in the public record in specific areas where you know most investors will be buyers and check the public records for their tell-tale trails – ownership and transfer of run-down properties. You can find these rundown properties by driving your farm area and looking for them. Realtors can search the MLS to find cash buyers in any area they farm. The first thing about the 367 is that only 139 properties actually sold that were offered by their original wholesaler. There is a technicality here that we have to discuss – the seller in the public record may be a lender who has taken the property back by foreclosure and the wholesaler is transferring the property by a land trust transaction or sale of an LLC or corporation. This would show the seller as the lender and the buyer as a land trust, LLC or corporation and the wholesaler would be virtually invisible as he sold the actual entity to the end-buyer. These entity transfers are not assignments of contracts which are almost never allowed by a selling lender. Additionally, the contract the wholesaler had with the conventional seller (non-bank owned or REO) may have been assigned to the end buyer so the wholesaler is completely invisible in the transaction. Having shown you how the wholesaler can be invisible in the transactions, there are telltale signs of his presence and I estimated that another 64 properties of the sample above were transferred this way. Now we have a total of 203 properties that were sold to end buyers that you may want on your email buyers list. Of these properties, two were in a specific niche that I like very much – burned or fire damaged properties so these buyers (both contractors) were added to that niche email list of mine. The remaining 164 properties (367 – 203 = 164) did not show deed transfers in time for this article which was 60 days after the last email for this sampling. That doesn’t necessarily mean that these properties were not sold, or will not be sold, it means that they haven’t closed yet. The most obvious reason for their not closing is that they weren’t sold by the wholesaler, but there are other possibilities such as title issues or the buyer’s funding not being available timely. In summary, the real bottom line of this exercise was that I discovered 59 new buyers for my buyers list and converted 54 to my email list. The other buyers who closed on properties were already on my buyers list – had I had more properties or what they were looking for at the precise time they wanted it, I would have done more houses in that time period. I prefer not to re-offer other wholesalers’ properties because of historical issues of getting paid properly and promptly. Always be careful of whom you are dealing with, get a partnership agreement signed so you get paid and don’t close if there are excessive charges in the HUD-1 closing statement.