5 Killer Tips to Find Joint Venture Partners and Cash Buyers

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A common question I often see asked in the forums is where do I find potential partners for joint ventures or active cash buyers?

The process is not too difficult, but it can be intimidating if you are just beginning. However, even if you are experienced, or don’t wholesale or JV too much, there are some great actionable tips in this post to help you build your database and start building relationships in real estate today.

The 5 Tips To Find JV Partners and Cash Buyers

The following are the 5 things I’ve learned to do in order to be successful in finding partners and potential cash buyers. I hope you find them as useful as I have. Let’s begin:

1. Court House Steps

Related: Find a Good Real Estate Partner Using The “5-Deal Test”

Here in the Dallas-Fort worth area we have what we call “Texas Tuesday” the first Tuesday of the month, all across Texas and its various courthouses there are multiple auctions.

The most common auction is the trustees sale at the court house steps. Additionally we have a sheriffs sale, which contains tax delinquent properties. Especially with inventory so low in most market areas right now, these people are buyers you want to talk to.

They literally show up to the court house steps with cashier’s checks ready to go, and most of the time they leave empty.  If you can show up with a deal and need some JV funding, or need a buyer for your contract, you will likely be able to find a partner here.

Competition at the court house steps has become increasingly difficult as inventory has diminished, not only that but hedge funds are also starting to bid on these properties as well.

These are perfect targets, if you are looking for a cash partner for your next joint venture, or looking to build your database as a wholesaler do not underestimate the importance of attending these auctions.

Not only that but regularly attending will help you see what properties are selling for in the area, what prices investors are buying at and help identify local movers and shakers in your market area.

2. Local County Appraisal District

To do this you can either physically visit your local County Appraisal District (CAD), or visit their website. Most counties have a database of sales, and you can filter the list by cash only sales.

This is a great way to identify active investors in your area. Not only that, but you can see exactly WHERE they are buying (down to the zip code and street address of the property) and what they are PAYING for it.

This is essential if you are new.  If you want to present a good deal, you better be able to give your end clients a contract that is around the price they are already paying or better.

3. Title Company

As you begin closing more properties and form relationships with various escrow officers they can often do some of the foot work for you.

Have them do a title search and they can often identify cash buyers to add to your database. Not only that, but many times the escrow officers have  frequently work with a handful of investors specifically, and they can refer your contact information to them.

4. MLS Cash Sales

Where better to find cash sales that on the MLS.

If you are not a licensed realtor, I suggest you reconsider as there are many benefits to becoming one. On the MLS you can filter sales by cash only, typically these will be active investors the majority of the time (although sometimes it will be a family), you can check this by verifying in the local appraisal district that the individual owns more than one property.

The best part is the MLS will show you exactly where these individuals are buying, and you can even use this information to generate a heat map of the area.

5. REI Meetups

Related: How to Rock at Finding a Mentor in Real Estate: The Definitive Guide

Lets face it, at REI meetups there are alot people that will just waste your time.

However, if you take networking seriously at REI meetups you will find some active investors to potentially partner up with on a joint venture, or to assign your contracts to. Once you do identify them find out what their buying criteria is.

Final Thoughts: Do I Need to Find Cash Buyers First?

If you intend to wholesale real estate, this is sort of a chicken and egg question.

To be honest I feel its best do both at the same time. In other words, instead begin your marketing campaign while building relationships with cash buyers. The bottom line is if you have a good enough of a deal, as my previous case study shows, you will find a buyer as long as you market it correctly and its at the right price.

What other tips would you add tot he list?

Be sure to leave your comments below!

 

 

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About Author

Chris discovered his passion for real estate early on working for a land developer. In addition to flipping houses, Chris operates as a licensed Realtor in the Dallas Fort Worth metroplex.

9 Comments

  1. Excellent Article Chris! I don’t wholesale either, but as far as finding joint venture partners these methods work, I have first hand experience using your court house step method. I am also in the DFW area and I buy mostly in Dallas. Here in the last few years or so competition has been very stiff especially with the hedgefunds and I started going off market to find my supply.

    After about 6 months of marketing I was so overwhelmed with leads and contracts I simply could not handle them myself, my partner was also over his head too. So I had a problem, I had great deals, but all my capital was tied up there was nothing I can do but refer the lead out.

    But instead of doing that I decided to start building my network more. And one such method was just taking some of these deals to the court house steps and networking. If you bring a great deal people practically fight to JV with you on it.

    Thanks for another great post
    -Jay

    • Hey Jay, thank you for taking the time to stop by. Networking at the court house steps is probably one of my favorite methods. Your audience is essentially “captive”, and these are motivated buyers. They literally show up with cashiers checks ready to buy, but often times leave empty handed. If you can present them with something that makes sense to both parties, its easy to move forward.

      You never know when opportunity might present itself, always remain vigilant.

  2. Great article Chris! A few questions.

    When going to the court house steps should we wait until we have a deal to present?

    When contacting title companies, what sort of questions are we asking the title reps to get access to these cash sales?

    • Hey Ben,

      Thanks for stopping by, glad you found the article informative. You do not have to wait until you have a deal to start networking at the court house steps. Just be honest that you are just beginning and started your direct mail campaign, driving for dollars etc, and you should have some deals coming in the coming months. If they are a serious investor they should be interested. Just don’t do anything sketchy, for instance some people suggest advertising a “phantom house” (advertising a house that doesn’t exist), I would never do anything of that nature.

      As far as contacting title companies, I would wait until you have a relationship with one of the escrow officers. Wait until you close a deal or two, and then you can start asking them favors for instance title searches.

      Hope these tips help, thanks for stopping by again.

    • Hey Diana, thanks for stopping by. Yes it is a marriage of sorts where you must connect the right parties. Once you can do that you will open a world of possibilities in this business.

  3. Lurline Henriques

    Sorry to be so late at this but I only discovered Bigger Pockets a week ago and I am trying to educate myself for free after spending thousands of dollars in Real Estate Investing in the past with no success. These topics are really educational and interesting and I am more encouraged to go out and take action now that I am reading them.

    I do have a couple rentals, however I would like to enter the flip, assignment or wholesaling arena and I am wondering if anyone knows what is a good State where this exit strategy shows quite favorably.

    Any assistance I can get will be greatly appreciated. Thank you
    Lurline

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