I have been looking at multiple markets and think I found a potential property that would be a great first deal to work on. The listing price is less than 80k and the ARV for the area project it in the 140-160k range and I would be comfortable to say 145k. I believe I would have to do a double close (not very sure honestly) to get this done. I could see myself walking away with a good profit but the thing is I have no idea where to start to find the cash buyers, flippers, or land lords that may be interested in buying. Where did you find your first buyers, and what were red flags you wish you knew about potential buyers as well?
One thing I'd be careful of is getting too excited just because there's a big gap between the purchase price and ARV. On paper those deals can look amazing until you start factoring in rehab, holding costs, closing costs, financing, surprises behind the walls, etc.
As far as buyers, honestly your first buyers are going to be found from local investor groups and just talking to people consistently. Facebook groups, REIA meetings, investor-friendly agents, title companies, hard money lenders… all of those people usually know who's actively buying. A lot of cash buyers are actually easier to find than people think once you start networking locally.
I’d also try building relationships with flippers before you even have a deal under contract. That way when you do get something good, you already know who’s buying in that area and what their criteria are.
Biggest red flags for buyers in my opinion:
won’t show proof of funds constantly renegotiate don’t put down earnest money take forever to respond or act like they buy 100 houses a month but can never actually close.
The serious buyers are usually pretty straightforward because they already know exactly what they’re looking for.
I'm in a very similar boat! Have a seller finance deal pretty much lined up and ready to go. 2.65% $2700 PITI rents for $6k+ seller has 600k of positive equity. But where do I go from here? How do I get in contact with a buyer for this?
Cash buyers come out of the county recorder. Pull recent cash sales in the zip and the LLCs buying more than once are your shortlist. Cross-reference with mailing addresses that don't match the property (absentee owners) and you've got a flipper/landlord list to call.
Don’t overthink the double close part yet. First make sure it’s actually a deal and start building buyers before you lock anything up.
For buyers, join Phoenix investor Facebook groups, go to local REI meetups, call "we buy houses" signs, and look up cash buyers from recent flips. Ask what areas and price ranges they buy.
Big red flag: buyers that say “send me anything” or can’t show proof of funds.
Also be careful with ARV. New wholesalers usually get in trouble by overestimating value or underestimating repairs.