An email subscriber asks how to find cash buyers…
“I am having the problem of finding serious cash buyers in my market. I am running into a lot of other wholesalers or investors that seem interested in my list of properties but never reply. What advice do you suggest?”
First thing I’ll say is this:
You should never focus on finding cash buyers until you actually have a good reason to.
What I mean is, if you don’t already have an awesome property to offer…don’t waste your time or anybody else’s.
I hate when someone calls me and asks the question:
“What kind of properties are you looking to buy?”
DUH!!! CHEAP ONES!! SUPER CHEAP ONES!!
I don’t care if it’s a piece of crap in the ghetto or a 150 unit apartment building.
If it’s a great deal, I’ll buy it…and if I don’t…I’ll know someone who will.
And if it’s not a great deal, I will have appreciated the fact that you brought it to me and I will remember your name next time you call.
That’s how you build relationships that make you money…all you have to do is add value.
Don’t even start putting buyers on a list until you have a deal that they’ll beg you for.
I have 3 buyers.
If the first one doesn’t buy my deal, I go to my second guy.
If my second guy doesn’t buy it, I know I have to do one of three things…
A) Go back for a price reduction
B) Take less of a wholesale fee, or…
C) refer it to my real estate agent and collect a referral fee.
Here’s the thing, sure if I had some huge buyer’s list maybe I’d sell a few more deals…but I would make less money…guaranteed.
I’m going after the deals that net me $10k to $30k each….Not interested in $2k to $6k checks, if I were I’d just keep brokering deals as an agent and collect 3%-6%.
This forces me to market more aggressively, screen leads more thoroughly and negotiate even harder.
Anymore, it is incredibly rare that I call one of my three cash buyers with property and they don’t immediately say yes, on the spot…without even looking at it.
Those are the types of buyers you want, but in order to have them…you’ve got to be delivering the goods.
So spend your time working on that instead.
When you have a REAL DEAL….a buyer’s list doesn’t matter, it will sell with very little effort.
And when you believe you have a REAL DEAL but you don’t have anybody to pitch it to…there are several ways to find REAL CASH BUYERS.
Here’s exactly where I would start if I were in your shoes:
#1 HOW TO FIND CASH BUYERS ON THE MLS
Get access to the MLS and do a search for all cash sales in the general area and price range that your property is in.
Once you have at least 5 to 10, find out who those buyers are, find their contact info and call them.
Don’t write them a letter, don’t send them an email, don’t send a pigeon with a note…FREAKING CALL THEM!
Here’s what you say:
Hi, is this Dave?
Great my name is Will and I noticed you’ve recently purchased a property at 1234 Formosa Ave.
Am I talking to the right person?
Congrats, that looks like a great buy!
Do you purchase homes like this often?
Great, well I’ve got one that isn’t on the market yet and you’re one of the first persons I’ve called.
Would you be interested in hearing about it? (if yes, proceed…if no ask for referrals…cash buyers know other cash buyers)
Perfect! (give them a quick general description…like “it’s a 3 bed 2 bath 1,200 sqft single level home for $50k – use common sense before giving out the address)
Does that sound like something you would be interested in? (if yes, proceed…if no, find out if they are someone who you should call for future properties and if not, get off the phone ASAP)
Sounds good Dave, and just so you know…I’m a loyal and straight forward real estate wholesaler.
I was only going to pitch it to 3 people and then take the best offer at or above $50k, how soon can we get together to go through it?
If for whatever reason you absolutely can’t find the buyer’s contact information, call the buyer’s agent.
Ask them if they have any buyers that would be interested in a great deal like they one the sold on Formosa Ave.
Offer to pay them their 3% commission to make the introduction…not broker the deal.
If they give you resistance, let them know that it’s not that hard to find the contact info of a buyer these days and you wanted to let them in on the deal…but if they don’t want to work with you then you’ll move on without them. (in a nice way of course)
Anyways, this is only one way to find REAL CASH BUYERS for your properties.
I’ve got at least 3 more sure-fire ways to sell your deals.
If I sense that this is a hot topic for enough people I’ll share them…let me know.
Hope this helps for now.
Ask your questions in the comments below and thanks for stopping by!