Hello, my fellow real estate buffs.
I am finally getting over my fears and getting my foot wet in REI. That begins with goal setting! By the end of 2018 I will own at least one investment property. I am well on my way, and have a handful of excellent deals that are ripe for the picking. The problem? No cash buyers. I need to build a diverse and robust cash buyers list so that I can finally close on my first deal. What suggestions do my seasoned colleagues have on creative financing, private and hard money lending, and building a cash buyers list? Thanks in advance for all the knowledge you will bestow upon me.
@Jasmin Vazquez You seem to be asking 2 separate questions here. A cash buyers list is only relevant if you are going to wholesale. But then you also mentioned creative financing, private and hard money lending... that's for financing your own flips or rentals.
So, assuming that you did mean that you want to wholesale: the easiest way to find cash buyers is to advertise a killer deal. If you really do have a handful of excellent deals, simply posting them on craigslist will get you more buyers than you can handle. If that doesn't bring buyers out of the woodwork then the deals aren't as good as you think they are, sorry, but that's just the truth. In which case you need to take a step back and build your buyers list first and find out what their criteria are, and then go out and look for properties that meet their needs.
Finding good deals is by far the hardest part of this business. Finding buyers and financing is almost a non-issue in comparison. So I suspect as a newbie your idea of a good deal is way off from what investors or even end-buyers think is a good deal.
I am not wholesaling. Indeed, I used the wrong terminology. I want to create a list of people who are looking for investment opportunities (with cash) that would be tappable networks for multiple 'Buy and Hold' properties. Maybe that is not the same as "cash buyers list". I intend to OWN the home that I am creatively financing, not 'middle man' it to make a small commission. At least, not on these properties.
There are many people who would like the opportunity to make better returns on their money with little responsibility on their end. Those are the people I want to approach whenever I find a property worth owning and renting. I want to avoid dealing with any funding that involves a substantial loan. Isn't that the REI dream?
I am not a newbie; I have skin in the game, as I am house hacking. Just have not committed to ownership of any additional properties yet. Since you cite that finding deals is the hardest part, I suspect I shouldn't be holding myself back. I have been running the numbers, and more importantly I have a detailed understanding of the market in which I scout. My community service in the area and my involvement with public officials means I have information about future trends and economic activity, so trust me when I say, I blow no hot air. I also utilize all the tools and resources available within Bigger Pockets.
Long story short, I don't want to deal with private or hard money lending if I don't absolutely have to. Are there other 'Buy and Hold' REIs who finance their deals solely with cash? Would you be willing to elaborate on your experiences (those who fit this criteria)?