Quality buyers are worth their weight in gold. The buyer is vital to a profitable wholesaling career so make sure you put a lot of effort into building a list of people who are eager and able to take deals off your hands as soon as you get them. The question is, How do I find a "quality buyer?" Here are four important questions to ask your potential buyer. The more qualified this list the more money you will make and the less problems you will have closing deals.
1. Are you able to pay with Cash? In real estate Cash is KING. The more cash buyers you have on your buyers list, the more money you will make. This should be question number one. Of course many buyers will tell you they have a line of credit or that they will be borrowing the money but nothing comes close to the ease of working with a cash buyer.
2. Can you afford an earnest money deposit? Rather than just allowing any old buyer on your list you want to make sure they are willing to put their money where their mouth is. If they are willing to offer up some of their own money to secure a deal you can be confident they will help in any way they can to make sure things go smoothly. Losing deals due to a broken promise is not fun.
3. What profit margins are you used to dealing with? The truth is, some buyers are going to be more greedy than other buyers. As an investor, you are trying to make money while at the same time leaving a good amount of profit on the table for the buyer. If you know where this person stands on how much profit they are willing to give up to you, you can then negotiate with the seller confidently and accurately predict how much money you can walk away with.
4. What kind of properties do you like to buy? It's pointless to let a buyer know about your low income property deal if this person prefers to work with luxury homes. If you know what your buyer prefers to work with you will close more deals plain and simple. This kind of segmentation of your buyers list is important and will save you time and inevitably make you more money. These are four very important questions you need to ask your potential buyer. Build a list of qualified buyers and you can expect to have a long and successful career wholesaling houses.
1. Are you able to pay with Cash? In real estate Cash is KING. The more cash buyers you have on your buyers list, the more money you will make. This should be question number one. Of course many buyers will tell you they have a line of credit or that they will be borrowing the money but nothing comes close to the ease of working with a cash buyer.
2. Can you afford an earnest money deposit? Rather than just allowing any old buyer on your list you want to make sure they are willing to put their money where their mouth is. If they are willing to offer up some of their own money to secure a deal you can be confident they will help in any way they can to make sure things go smoothly. Losing deals due to a broken promise is not fun.
3. What profit margins are you used to dealing with? The truth is, some buyers are going to be more greedy than other buyers. As an investor, you are trying to make money while at the same time leaving a good amount of profit on the table for the buyer. If you know where this person stands on how much profit they are willing to give up to you, you can then negotiate with the seller confidently and accurately predict how much money you can walk away with.
4. What kind of properties do you like to buy? It's pointless to let a buyer know about your low income property deal if this person prefers to work with luxury homes. If you know what your buyer prefers to work with you will close more deals plain and simple. This kind of segmentation of your buyers list is important and will save you time and inevitably make you more money. These are four very important questions you need to ask your potential buyer. Build a list of qualified buyers and you can expect to have a long and successful career wholesaling houses.
About the Author:
Michael Kimble's daily blog at Wholesale Real Estate blog has more daily tactics and news, as well as real estate investing videos. He also has 4 free marketing systems that you can download, at : Wholesale Real Estate tips.
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