CASH BUYERS:

[Ashley Jackson]

Hello, everyone! I am a new real estate wholesaler who hasn't done a deal yet. Currently, I am searching for properties to market to cash buyers. Although I am very green to the process, I want to do things in a professional manner. When I present properties to cash buyers, I want them to see that I've done the necessary research and due diligence on the property and to know that I am very professional about what I do.

Cash buyers, what tips can you offer a new wholesaler on presenting properties to cash buyers? Thanks in advance for your responses!

Ashley J.

[Edward B.]

Show them the numbers work. If you are marketing to home buyers you can sell the sizzle rather than the steak, but cash buyers are generally sophisticated investors who will run the numbers. They dont want to "hear" what a great deal it is, they want to see it. If you can do that for them you will make it easy for them to buy.

Of course, that may be easier said than done. You need to have good knowledge of the market and what houses sell for. You need to be able to pull good comps that you can show your buyers that will demonstrate the likely ARV. Ideally, you should be able to give a good estimate of the rehab costs. At a minimum, you should have a line item list of what needs to be rehabbed. A lot of this work should already be done by you unless you are just taking shots in the dark. So if you can articulate it clearly to a buyer they will be more likely to take your deal. Once they know that they can trust your numbers they will keep coming back. Make sure your deals work with conservative numbers too. If they are too rosy it will be harder to market the deal and buyers will be leery of your inventory.

If you can bring good packaged deals to buyers and earn their trust, you will probably be able to find 3-5 investors who will buy most of your stuff. Then you can focus almost solely on finding the deals.