Quality buyers are vital to your real estate business. It’s very important that you put as much effort into building your buyers list that you can because basically the buyer is your BANK. The buyer is the key to your success in real estate. So how do you screen for a “quality buyer?”
Here are a few great questions to screen your buyer. The more qualified your buyers list, the quicker you will close deals with the least amount of hassle so these questions are very important to ask:
1. Are you a cash buyer? Having a large list of cash buyers is the equivalent to having a license to print money. This should always be your first question to ask. Cash buyers are the easiest to deal with hands down. There is nothing wrong with buyers who have a line of credit or who may be borrowing the money but they cannot compare to a person willing to pay cash.
2. Are you able to afford an earnest money deposit? You want to weed out the folks just kicking tires. You want the real players who are willing to offer up some of their own money to show you they are serious about the deal. The last thing you want is to lose a deal due to a verbal promise gone bad.
3. What kind of profit margins are you hoping for? Face it, some buyers are greedier than others. Successful wholesaling is all about you as an investor leaving a decent portion of the profit available to the buyer. Knowing where your buyer stands on his/her desire for how much of that slice they are willing to give up will better help you negotiate deals and predict how much you will make per deal.
4. What kind of properties do you like to buy? If you deal in lower-end properties then having a buyers list of luxury home buyers seems pretty silly doesn’t it? If you know the types of houses your buyer prefers to work with this will further save you time and certainly close more deals. You can segment the list and really save yourself time and headache.
These four questions alone will help you begin to have a list of hot prospects who will eagerly snatch up your deals when you have them available and give you the least amount of unforeseen issues.
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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