Marketing & Finding Deals Without Cash

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Marketing & Finding Deals Without Cash

Randy Hunter
Architect · Pittsburgh, PA · Member since 2016 · 31 posts · 9 votes

In all of the blog posts, webinars, podcasts, books I have consumed over the past few months, the key point that comes up in almost every marketing campaign whether it be direct mail, bandit signs, websites, etc...is "CASH BUYER" and "WE CLOSE FAST". I understand the benefits of this situation and that it's a big draw for would be sellers

But, what if I do not have cash? What are some important marketing tactics to use to attract sellers when I can't buy with cash and close in 2 days? How do I, as a marketer, compete with the BOLDLY ADVERTISED CASH BUYER? Or can I not? Do I have to simply scrape together a few deals anyway I can in order to build that cash base before I seriously consider a large direct mail campaign? 

Do hard money lenders, without you having an actual deal in hand, give you a guarantee or terms that, if you were to bring them a deal, they would in term finance X amount on X terms?...and then you can tell a would be seller, no I do not have cash but I can close quickly with my loan company? 

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  • Marc Melso
    Malvern, PA · Member since 2016 · 2 posts · 0 votes
    10y

    Randall:

    From the viewpoint of a private lender, If a potential borrower whom I haven't done a deal with shows me a deal I would:

    1.) Vet the borrower in terms of their experience, credit history and background check (This only needs to be done in the beginning)

    2.) research the deal in terms of location, ARV, potential purchase price,as is condition, and scope of scope of work.

    If both check out, I would then give a commitment to lend.

    From your point of view, you want to be sure you can rely on the private lenders word that they will, in fact, fund when the time comes.  This is where reputation and relationships matter.  The more confidence you have with the lender the better you are when bidding.  Find a lender that your colleagues use whom you respect.

    Best of luck!

    Marc Melso

    Blacknote Capital, LLC

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  • Randy Hunter
    OP
    Architect · Pittsburgh, PA · Member since 2016 · 31 posts · 9 votes
    10y

    @Marc Melso Thanks Marc. That makes sense. So I technically don't need to have the cash myself. But if I've made solid connections with those who have cash and can rely on them to come through when I present them with a good deal, then technically I'm a cash buyer...I guess I was stuck in the mindset that the cash needed to be possessed by me.

    Thanks again!

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