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Investing Strategies

Wholesalers: Know Thy Buyer!

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Hey there investors – it’s Andrew “The Maestro” Massaro here bringing you a powerful marketing strategy that can help you build a strong and steady investing business that can weather any and all storms that might come along.

Some wholesalers ask the question: Can you wholesale only in a down market or is it just as lucrative in a good market?

To me, there’s really no difference. If you do it the right way from the get-go, you won’t need to change hardly anything about your business when the market changes. If you don’t, then you’re going to have to change your business drastically.

The Right Way vs. Those Other Ways

There’s a right way to wholesale, and then there are those other ways to wholesale. If you operate your business in those other ways, when the market changes, your business is going to be in a constant state of flux. This is not the best way to operate your business.

What I see most wholesalers doing is this…

When the market is good, there are fewer deals out there so they spend most of their resources – time and effort – in finding those deals. When they lock one down under contact, basically all they do is send out an email or do light marketing on the back end, to pull in a buyer.

The opposite is true when the market is down. There are tons of deals out there, so most wholesalers focus less of their resources – time and effort – on the front end getting the deals. When they get one under contract, they have to spend a lot of time and effort on the back end to find a buyer. A down economy shrinks the buying pool, which means it’s much more difficult on the back end to find a buyer and to flip the property.

Find out Who Is Buying

My strategy isn’t like that at all. My strategy is to do things right from the very beginning so you don’t have to worry about any of that stuff. Here’s the way I teach my students to wholesale…

First find the buyers. These are your customers. Wholesaling is no different than starting up any other type of business. No one opens, say, a brick-and-mortar business, without first doing a market study for the area. It’s important for them to find out if the potential customers even exist in that location. Then they put together a marketing plan to reach those customers.

Wholesaling is no different.

catYou need to find who is buying properties. Who are the serious, active cash buyers in your town or city? Contact them and get to know them, because these are your customers, and they are going to make you a lot of money.

You don’t need a hundred of these guys... In fact, there may not be a hundred cash buyers in your town.

All you need is about 5 to 10. But they have to be active; they can’t be someone who buys one property every six months or so. They have to be buying properties every month. That’s why I say if you get 5 to 10, you’ll be looking good!

Getting to Know You

Next, you get to know them. Do a 5- to 10-minute interview with them and get to know as much as you can about their business:

  • What do they want in a property?
  • What’s the location where they’re buying properties?
  • What are they willing to pay for a property?

Once you have this basic information, then you can go out there and get it for them.

Compare this to other wholesalers who buy properties and hope against hope they can actually find a buyer. You don’t work on just a slim hope. You have your finger on the pulse of their needs.

So when you’re out there buying, you judge your deals against the needs of your buyers. Otherwise, it’s all one big crapshoot.

Remember, we as wholesalers are real estate brokers. We are wholesale brokers; we broker the deals.

On an Even Keel

If you follow this system, you won’t have to change your business hardly at all. Maybe slightly here and there with the market, but it won’t be a drastic change like many other wholesalers out there.

While the other wholesalers are getting whiplash trying to follow the fluctuating market changes, you’re not worrying about market changes at all. Your business is on an even keel; steady as she goes.

Lemme Hear from Ya

Does this make sense for your business? I hope so! Let me know if this is working for you in the comments section below.


Do It To It! Immediate Action Steps

Find your potential customers (active, serious cash buyers)

Take time to talk to them; find out what they’re looking for

Look for deals that match the needs of your buyers

Present to your buyers the deals that match their needs

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