With a response rate of 0.5%, seller leads require a lot of energy to chase down. Rather than expending energy on finding seller leads, Justin Van Riper is laser-focused on finding buyers. This approach means he can keep his team lean, and hone in on an approach that consistently works for him. Not only is the response rate nearly ten times that of seller leads, but buyer leads will purchase more than one property from him.
Instead of letting the buyer set the criteria, Justin flips that on its head and tells the buyer what he can provide. He looks for buyers who are purchasing in a like-market. And he prefers buyers who are already buying out of state because then he doesn’t have to sell them on the concept.
The more value you provide for your buyers, the more repeat business you’ll do with them. Whether you choose to provide them with a list of local lenders, local contractors, or property management companies, the relationship you build with them will in turn bring you more businesses as they continue to invest in your area.
How much information should you give your buyers about where your fee is coming from? I’ve had a buyer upset with me because the house was listed for less on Zillow than what I was selling it for. Justin stresses that honesty and transparency will serve you well in this.
When the deal goes bad, and the rehab costs more than expected, Justin tries to give them good referrals to avoid that in the first place. Above all though, investors need to remember that there is a risk, just like any investment.
If you’re interested in buyer-first wholesaling, Justin’s offering a free five-day course on his website that teaches these same principles he talked about today.
Watch and Learn
Listen and learn:
- How Justin finds buyers and sellers, and why he prefers direct mail.
- Sticking to smaller rehabs is a less risky strategy Justin recommends.
- The benefits of double closing and then double closing on top of that.
- As long as you have some sort of MLS access, you don’t need a Realtor’s license.
- Transparency is key in the kind of deals Justin prefers.
Mentioned in this episode:
- Apple Podcast Reviews
- Joe McCall on Youtube
- Justine’s Free 5 Day Course
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