This is a continuation of “The Great Escape” interview with Eric Thiele. Eric is working with Sean Terry and Flip2Freedom.com to learn how to start up a successful wholesaling business. In this section, Sean and Eric discuss networking with buyers.
Sean: What we’re looking to do is find out what they’re buying? What price point they’re buying? What is their perfect property? What’s the last property they bought? Find out if they are a fix-and-flipper or a buy-and-holder. What’s great about it is you can position yourself not as a competitor that’s going to bid against them, you can position yourself as, “Hey, listen, I’m looking for good buyers. I’m looking for someone that can close quick, and close cash. I’m going to provide properties that are off-market. These properties are going to be below market.” I typically market to find sellers either through internet marketing or direct mail. I’m looking for good buyers I can tee these properties up with, and it can close on a regular close—typical, seven day close.
We want to start networking with those people. Those people, they’ll tell us exactly what they’re looking for. I have an iPhone so I just keep their buyer information in the iPhone, and then when we go out and market we can tee up that specific property to them. If they’re looking for a three bed, two bath with $5,000 or $7,000 worth of work or whatever, then guess what? When you get that property, you can give them a phone call and say, “I’ve got a deal. I’ve got a smoking deal. Before I put it out to everybody else and their brother, I’m going to give you an option to look at it. You’ve got 48 hours. Here’s the address. Here’s the information. Let me know what you think.” That’s a great way to build a relationship with buyers. Now people’s perception–Eric, how many buyers do you have right now, starting out?
Eric: Starting out, I’ve got a mailing list of about 15.
Sean: Okay, so he’s basically starting from scratch. He’s got 15 buyers. There is a misconception that you have to have tons of buyers. That’s not the truth. I probably sell 90% of my properties to about 10 people that buy consistently from me. They have an appetite. I like doing business with them. I know where they need to be. I know the properties that they like and I know the decisions and stuff. They’re great to work with. I play golf with them. They’re fun. They’re friends. We’re helping each other build our businesses. You don’t have to have a ton of buyers. You just have to have the right buyers that have an appetite. That’s perfect.
Assignment one is to talk to the realtor. When you have that realtor, incredibly important: they must be a NAID registered broker. Do you know if any of these guys are NAID registered? You probably haven’t asked that question.
Eric: I do not know–I know what NAID registered means. I have not checked to see if these folks I’m talking to are NAID.
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