How Do you Get Cash Buyers in a Small Town?

Question

Hello BP:

I'm a new investor and live in a small town surrounded by small towns. I keep getting properties, but I'm having a hard time finding cash buyers. How do you find cash buyers in small towns?

Please, advise.

Thank you,

Jovi

Jovi Brown · Answer

@Paul Haughton, thank you so much for sharing insight. As you mentioned, I'll give my strategy a little time and consider other areas... Also, I'll consider price as a key factor.... Your success with handwritten bandit signs sounds great! I'll try handwritten bandit signs.

Thank you for your encouragement!

By the way, I tried to mention you but don't know how--lol

Thanks,

Jovi

Paul Haughton · Answer

@Jovi Brown, you seem to be on the right track. It seems like your area is not as sought after as the others. That said, it is almost always the case that you will find a cash buyer for any property at the right price. It may just take longer to find those buyers. I have used handwritten bandit signs to market properties and attract cash buyers, with good results...especially when in areas where I didn't have an active buyers list. But the low price was the main draw.

I would suggest giving your strategy a little more time to work and see if you can negotiate lower prices. If results don't improve, you may want to consider redirecting your marketing to the more desirable towns (if it is logistically possible), or perhaps exploring other untapped opportunities in your area.

Wish you success!

Paul.

Jovi Brown · Answer

Hi @Paul:

Thank you for responding.

To look for cash buyers, I have software that I can query for a list of cash buyers by zip code, house size, number of bedrooms, and the like. The problem is that it seems that most of the cash buyers that it pulls are one-time buyers. It seems that they only bought their private residence with cash and are not interested in ongoing cash purchases as an "investor".

Also, I have responded to Craigslist adds for people who claim to buy houses cash near my area. Some of the people were bogus. Others were legit, but they seem to skip my area. I'm in the Albany, GA area. Many of the investors that I spoke to claim to buy in Macon and Valdosta (north and south of me).

Recently, I put ads on Craigslist so I'll see how those go; and, today, I'm going to get bandit signs. We, already, have bandit signs saying that we buy houses so, now, we're getting some to attract cash buyers.

There are some upcoming real estate auctions so I plan to attend to see who's bidding and get cash buyers that way.

1. Thank you for sharing the blog. It seems like it might be the same information that I'm getting via the software. As an aside, the video in the blog post did not open.

2. I ask people preferences. However, with most investors that I've spoken to lately, the area (our small town) has been the problem_ not property type.

Thank you for your help.

Jovi

Paul Haughton · Answer

Hi @Jovi Brown,

It would be helpful to know what tactics you have been using to find cash buyers. Can you share?

Couple things to consider:

1. Depending on your location, there may be fewer cash buyers available. You may want to verify that there are cash transactions happening in your area. There are a number of great articles / posts on the site with useful tips (search: "cash buyers"). Here is a link to a blog post by @Sharon Vornholt that you might find helpful. http://www.biggerpockets.com/renewsblog/2013/11/12...

2. Cash buyers typically have specific buying criteria: they look for specific types of properties in specific locations / zip codes, within a desired price range. It is possible some  of the properties you are getting do not meet the criteria of buyers in your area.

Best,

Paul.