Lesson 1: The Importance of a Strong Buyer’s List

Lesson 1: The Importance of a Strong Buyer’s List

A buyer’s list is a wholesaler’s lifeline—without a strong network of buyers, even the best deals can go unsold. Having a reliable and active buyer’s list means you can quickly move contracts, increase profits, and maintain a steady business flow.

Benefits of a Strong Buyer’s List

• Faster Deal Closings: A ready list of investors means you can assign contracts quickly.

• Higher Profit Margins: More buyers create demand, allowing you to negotiate higher assignment fees.

• Increased Deal Volume: A robust buyer’s list enables you to close multiple deals simultaneously.

• Reduced Risk: Knowing you have multiple potential buyers minimizes the chance of deals falling through.

• Better Negotiation Power: Sellers are more likely to work with wholesalers who have proven access to cash buyers.

How Many Buyers Do You Need?

• Beginners: Start with at least 10-20 solid cash buyers to ensure deal liquidity.

• Growing wholesalers: Maintain a list of 50-100+ active buyers to scale your operations.

• Large-scale wholesalers: Having 300+ buyers ensures competition and faster sales.

Building a Buyer’s List from Scratch

If you’re just starting, you’ll need to actively build your buyer’s list using the following strategies:

• Networking: Attend real estate investor meetups, REIA meetings, and online forums.

• Public Records Research: Use county records to identify frequent property buyers.

• Online Advertising: Run Google, Facebook, and Instagram ads targeted at investors.

• Social Media Engagement: Join and participate in real estate investment Facebook groups.

• Wholesaler Partnerships: Collaborate with other wholesalers and exchange buyer contacts.

Types of Buyers in Wholesaling

• Fix-and-Flip Investors: These buyers look for distressed properties to renovate and resell for a profit.

• Buy-and-Hold Investors: Landlords looking to acquire rental properties for long-term income.

• Hedge Funds & Institutional Buyers: Large-scale investors purchasing multiple properties at once.

• New Investors: Beginners who rely on wholesalers for off-market property leads.

• Out-of-State Buyers: Investors looking for deals in different markets due to affordability or profitability factors.

Balancing Quality vs. Quantity in Your Buyer’s List

• Quality buyers actively purchase properties and close deals quickly.

• Quantity ensures you have backup options if a buyer falls through.

• The best strategy is to have a mix of high-quality, active buyers and a broad range of backup investors.

By continuously expanding and refining your buyer’s list, you increase your ability to close deals efficiently, build credibility in the industry, and scale your wholesaling business faster.

A well-developed buyer’s list ensures:

• Faster deal closings – No scrambling to find a buyer when a deal is under contract.

• Higher assignment fees – Having multiple buyers bidding on your deals increases profits.

• Stronger negotiating power – Sellers are more likely to accept offers when they see a list of ready buyers.

• Consistency in business – A reliable network of buyers means a steady flow of income.