In real estate, more than anywhere else, time is money and if your strategy is based on flipping properties quickly, then a buyers list is a very important compilation that you need in order to flip a recently-purchased property. You cannot afford to sit with a property after buying it. Here are some reasons why a buyers list is a valuable tool for flipping properties.
It Provides You With A Demand-And-Supply Chart. By creating a buyers list, you will be able to form a geographical chart that will point out the areas where there is a demand and other areas where there is an abundant supply of properties. Thus, if you have a property in areas where there has been a demand for the same, you can be pretty sure of being able to sell the property after making a few calls. In the same way, use a buyers list to purchase a property in areas where the demand is strong as it will assure you of a quick flip. Remember, if you have a property that is not sold quickly then it can mar your reputation as an efficient flipper. People might start harboring doubts regarding the physical condition of the property.
It Helps You Segregate Your Buyers. Instead of buying a property and calling everyone from a general list, compiling a segregated buyers list will help you in separating your actual buyers from investors, rehabbers, renters, landlords, etc. Thus, whenever you buy a property that has a high potential all you need to do after renovating is call a rehab buyer, who might be motivated to buy the property after looking at it. Similarly, a property suitable to be rented out could be flipped to a landlord that specializes in buying properties for renting them out. Such a list will save a lot of time and energy and will ensure that the right property reaches the right person interested in buying it.
It Helps You Establish Yourself In The Market. If you join a real estate association then you will be able to rub shoulders with other people with similar needs and expectations. Thus, by adding such people to your buyers list, you will be able to quickly sell off any property on hand and even purchase new properties. This will help you to slowly establish yourself in your real estate market.
It Helps You To Maintain A Positive Cash Flow. By maintaining an updated buyers list at all times you can quickly flip properties and this will contribute cash to your kitty. This, in turn, will maintain a positive cash flow and enable you to buy even more properties without any financial hitch.
It Provides You With A Wider Choice. By constantly maintaining a buyers list, you will have a wider range of buyers that could be interested in the property that you have on hand. You can now compare more offers and choose the offer that provides you with the most in terms of money or flexibility. This would not have been possible without a buyers list where you would have been forced to compromise your profit margin or accept rigid payment terms.
A buyers list is a necessity if you not only want to quickly flips properties but also want to do it on your terms. This should not be viewed as an obligation but rather as a highly useful tool to transact faster and high-profit deals.
Written by: SP
Date Written: 30-06-08
Reviewer Assigned by: David
Reviewed by: HS
Quality Control: AG
Copyscape Results: Nothing copied
Webmaster Results: Nothing copied
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Common Error Check: Done
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Quality Control Completed on: 07/07/2008