Attorney · Nashville, TN · Member since 2014 · 38 posts · 33 votes
I should be getting my first contract back from a seller tomorrow so now it's time to approach some investors! I already have a small list of big players in my city but I'm having problems thinking of a good way to pitch them the deal eloquently.
Many of the investors I know of in my area invest very traditionally and I don't know if they'll be familiar or comfortable with the idea of wholesaling.
For those of you who have solicited cash buyers successfully, what approach has worked best for you?
Easiest way is to just say: I see you buy properties in _______ (city/neighborhood/zip code/whatever), I have a great property that I'm looking to sell in __________, would you be interested in taking a look at it/the numbers/whatever?
If its a deal, they likely wont care how you got it or how you are getting rid of it.
Easiest way is to just say: I see you buy properties in _______ (city/neighborhood/zip code/whatever), I have a great property that I'm looking to sell in __________, would you be interested in taking a look at it/the numbers/whatever?
If its a deal, they likely wont care how you got it or how you are getting rid of it.
@Kirk Gore you might have to have a better deal but I'm sure if you were able to deliver property at 50 cents on the dollar you would get someone to listen. You might have to explain it to them but for the right price, most folks will listen.
@Anson Young , at what point do you typically disclose to your buyer that you don't actually own the house that you're selling but just have it under contract? Is it better to bring it up in the very beginning or is it not necessary unless they ask? Have you ever experienced anyone having reservations about buying from you after discovering that you're selling someone else's house?
@Bill S. , I'm confident that I've secured a great deal I just want to make sure that I pitch it the right way. I'm a little nervous about trying to sell a house that I don't own!
The most important factor is to make sure your numbers are accurate and you understand what margin your buyers need to make the deal a success. For example, in my area we buy deals at 75% x ARV - construction budget. It is critical that your ARV is accurate, otherwise buyers will be skeptical of your deals now and in the future. If your ARV is off by 10%, that can suck up all your profit as a flipper. Of course, make sure you have enough room in the deal to also make your profit. If the numbers work, you should have no problem finding a buyer in most markets today. Lack of inventory is the biggest challenge for people trying to do deals in most of today's markets. Good luck!