Tools of the Trade: Keeping a "Buyers" List

My last entry was about the importance of motivated buyers and how to identify and attract them. However, many of these motivated individuals may not be appropriate for your current properties, but could be your perfect customers at some point in the future. Follow-up and continued communication are crucial, and that is why many investors compile a "buyers" list to keep track of these high-interest individuals.

Similarly to a tickler file, a buyers list does not have to be an actual list, per se. It could be a bunch of papers inside a file folder, or could be stored on your computer and/or online. The only requirement is that it must be an easily accessible collection of information on potential buyers.

A software-based solution such as SmartInvestorPro can be excellent, or you could use a file on your hard drive, or a physical file folder containing individual sheets of paper. Whichever approach you take (experiment with them to see which one works best for you), there are a few crucial pieces of information that must be collected, and many others worth considering:

Contact Information - Fairly standard. Try to collect as much of this information as possible (since buyers may not be settled in any particular location and may be hard to track down).

• Name
• Address
• Email address
• Phone #
• Fax # (if applicable)
• Skype # (if applicable)

"Buyer Profile" - The buyer's preferences. This helps an investor avoid unnecessary phone calls, saving time and increasing the quality of your interaction with potential buyers.

• What size property would the buyer be interested in - a single family with 3 bedrooms and 2 bathrooms, or some other type of property?
• Which neighborhood(s)?
  
• Why is the buyer motivated?
• Property specifications: is the buyer looking for a big yard? A location close to a good school or the airport? Close to shopping and major roads, or a more private location?
  

Financial and Logistical - The "nuts and bolts" that help shape your opinions and structure your contracts.

• When could the buyer move in?
• Would the buyer be interested in a "terms" purchase (such as a land contract or PMM)? Would the buyer consider an "all-cash" purchase? Does the buyer only want to rent?
  
• Can the buyer qualify for a traditional mortgage? Are there any previous financial difficulties worth noting?
• Does the buyer have enough cash for a down payment?
• Is there a previous property that needs to be sold before the buyer can reasonably purchase this property?
  

Notes/Other - Anything else of interest.

• Names of spouse and/or children, if applicable.
• Important days or deadlines that may affect motivation or purchasing ability (new job, beginning/end of school year, end of an existing lease contract)
• Follow-up questions to ask.
• Any observations, personal information, summaries of discussions.