Building Your Buyer’s List for Discount Hawaii Properties
Investing in real estate all comes down to a simple process: buying and selling quickly. When analyzing a real estate deal for Hawaii wholesale property, there are a variety of factors an investor must keep in mind. This can range from the after-repair value (ARV) to required renovations, financing fees, title/escrow costs, buyer market, etc…
Therefore, when seeking to buy homes for sale at discounted rates, it’s important to have an idea of who your buyers will be before purchasing a property yourself. This can be done by building your buyer’s list through a multitude of sources and networking efforts.
Why a Buyer’s List?
Different buyers look for different things. Discounted properties and wholesale real estate can be tricky because you have to be sure the buyer knows what they are getting into. If you do not plan to renovate and are simply looking to flip, having a buyer’s list can be your best friend. Here are a few reasons why:
1. You already know they are looking to purchase cheap houses or Hawaii real estate in general, so you can skip the MLS.
2. There is an option to “pre-sell” the property to repeat buyers.
3. It saves you marketing dollars and labor costs.
4. It creates repeat buyer relationships.
5. Repeat buyers often bring cash to the table, which facilitates closing.
So, having a decent pool of qualified buyers is one way to quickly move wholesale properties. If this list of buyers can go to contract before you’ve completed rehab, even better! Having a definitive relationship with both your real estate wholesaler and your key property investors will ensure you are making sales quick and efficiently.
Who’s on Your List?
Buyers can come from all walks of life, but you will generally encounter three main types to add to your list:
- Home Owner: These are the buyers that will be living in the property and typically pay a higher rate than any other buyer. That’s because they are more concerned with having a home than near-term profit.
- Cash Flow Investors/Landlords: Otherwise known as the “passive income investor” these are the buyers that are naturally looking for profit. However, this profit is expected to be earned over a long period of time. Less concerned about upfront equity and more invested in cash-flow, they will likely settle less than a homeowner, but won’t be seeking deep discounts like rehab investors.
- Rehab Investors: These are your buyers that want the best deal possible and are looking to close quick. They are mostly looking to rehab the property and flip it on the open market for their own list of buyers. These buyers pay the lowest of all three.
Ultimately, it’s critical you understand the type of investor you are before you create your list of applicable buyers. Purchasing wholesale real estate has its risks, but it can also deliver great rewards. With a key Hawaiian buyer’s list, you can be sure to invest and sell quickly, efficiently, and successfully every time.