Anyone know where to find cash buyers?

Question

I have fix and flip properties under contract right now that I am looking to assign to a cash investor. I have properties in Baltimore,MD, Springfield,IL, Ogallala,NE, Bluefield,VA, and Fort Valley,GA. Please note that all the properties I have under contract are at LEAST 5k below the market value and I have housing comps, repair estimates, and ARVS for each property. These are great deals, but I do not have the connections yet and I do not want to just purchase a buyers list to cold call off of, I want real connections with investors! Any advice on how to obtain cash buyers?

Account Closed · Answer

You're spinning your wheels with the wrong contractor. He either has never done a flip or doesn't understand what you are asking of him. But, it's your call. If you want to learn how to do things correctly PM me.

Account Closed · Answer

Then it's the wrong house.It doesn't matter what someone will sell for. What matters is how much the investor will make when it's all done and said.

You have to estimate how much money it will take a fix & flip investor to fix it up. Usually it's about $10k to $80k depending on the deal. You have to add in carrying costs - usually $2000 a month for 6 months. You have to add in the costs the investor incurs to sell, usually about 8%. and so on and on. You have to add in your fee. If there isn't any profit left after taking that risk and doing all of the work, why would an investor want it?

Account Closed · Answer

5k below market won't get any cash buyer's attention. Find some real deals and let's talk. They need to be at least 30% below market. That is, on a $200,000 market value, the investor will go as high as $140,000 to buy it for cash. That's about 60k below market.

Jabrail Henderson · Answer

Often real buyers look at the lowest prices. And they think: Oh where can I find new builds near me to buy . And everyone tries to haggle. My advice to you. If you want to sell quickly. You have to put the price below the market by 20%. Buyers will come to you. And there will be a lot of them. But they'll all want you to give them a lower price. You can never go any lower. Stand your ground. Because you're only going to lose if you give them a lower price.

Erika Butler · Answer

First, why are getting your ARV from your contractor? I only get rehab bids from my contractors. But I agree with the others that it’s just not enough of a discount. The reason being, investors have so many costs associated with buying and holding a flip on top of the risk. It’s all factored in that discount price of 30% of its value.

Rick Pozos · Answer

It sounds like that was NOT a deal. Pass on the deal and keep looking.

Just because you got something under contract a little below what they are asking does NOT mean that it is a great wholesale deal.

You have to figure out what the retail price of the property is all fixed up. That is the ARV. Take 70-75% of that number. THEN subtract all the repairs that it needs to make it look beautiful. THAT is the price that an investor is going to pay CASH. If there is some owner financing involved, the investor can usually pay more.

You have to market to people who NEED to get out of their house. Most MLS properties are people who WANT to sell, not NEED to sell. Find the NEED to sell people and you will find some deals.