finding cash buyers
I see a lot of bandit signs in my farm area. I have called many of them but when I call most of them seem to be wholesalers as well. Some say they have cash investors but most seem to be looking for properties so that they can wholesale them to cash investors. I can I find cash buyers who are mostly or strickly looking for houses that they can buy at a discount? Some of the wholesalers say that we can split the assignment fee which is okay at times but I would much rather assign these properties by myself so that I can generate enough capital to buy properties outright.
Ahhh.... the age old question. The real question is how do you get "Qualified Cash Buyers"
I'm going through something similar myself. And out of a database of about 120 contacts I have 12 qualified true cash buyers.
How are your networking skills Sherri? You need to call them back and ask them some very specific question.
There is a bit more before I get to these questions but that will help you out with the most important ones:
How are you paying for the deal (private or own funds cash or finance)?
How quickly can you close on a deal?
How many deals have you done prior?
and
When can you close?
Keep them in a separate section in your database and contact them first either via email or preferably with a quick phone call.
Good luck in your endeavors
Thanks Mariah for your response. I will definitely ask my buyers those questions because some of them are definitely not funding my deals they are going to their buyer's lists as well.
Oh btw Mariah I see you are in Mass... Maybe we can network and work on somethings together. I am going to request to follow you so we can exchange info.
Sherri,
I replied to your other post about wholesaling (see my blog below for reference on why you should network with other wholesalers). Also, don't assume that all of the wholesalers are on their A game. I ALWAYS call these signs. Sometimes they never call back. I got in touch with one guy that had no idea his sign was out on a road side ---- it had been over a year since he had looked at buying a property
The best way to do this:
MLS Search for closed sales with Financing Type: Cash. Both the MLS's I belong to have this option.
No browse the list for stuff that looks similar to what you will be selling. Drive-by them or do a title search and get the contact info of the investor who bought it.
It's a lot of work, but that is the best way to track down real buyers.
Steve and Brooks thanks for your knowledge and sharing it with people like myself. You guys have definitely helped me to broaden my search scope. BTW obtaining an MLS listing of cash buyers was something I was thinking of but I either have to have my RE license or know someone that does and would be willing to supply this list, right?
Finding cash buyers is actually very easy. I am a cash buyer and if you wanted to find me or others like me, you should look at who buys at foreclosure auctions.
In AZ, this list is easy to obtain by searching the county recorder for trustee's deeds. Almost all people who got a trustee's deed are cash buyers. Furthermore, they are buyers used to paying cash within a few hours of finding out about a property - the exact kind of buyer you would like to have for your deals. We would expect good pricing, though!
Thanks Vikram for the info. I will be trying my county records to see if I can find that info asap. I love the networking on this site. Some of you guys are mentoring us newbies without even knowing it.
Hi Sherri,
I am a cash buyer in the Springfield MA area.
One way I find other cash buyers is to look at Craigslist and see who is advertising vacant rehabbed houses for sale. I will then look at the tax records to see when they bought it and if they paid cash.
I like this method because you know these are active rehabbers and you can usually get their phone and email right off Craigslist.
Go to your local Home Depot contractor's service desk. Ask the service desk manager who does a lot of rehabs. They should be more than happy to pass a deal to their clients.
The absolute best way to find cash buyers is: drum roll please......... have an actual deal to wholesale. If you have a truly good deal, people will come out of the woodwork.
P.S. For your information, if you're worried about wholesaling to other wholesalers you can put a "no assignment" clause in your wholesale contract.