Ok, so I want to work on prescreening my buyers for wholesale deals. Finding reliable and consistent buyers is a work in progress. Other than putting in my ads "cash sale only", "investor special", "no rent to own" and asking very plainly and clearly if a person is a cash buyer, how can I weed out tire kickers and no shows. I get its nature of the beast, just part of it, but there has to be a tip someone can provide to help.
Showed a house Tuesday, guy said he would pay cash. At $29k even for a younger ex-military, seemed legit. Met him again Thursday with his dad to go through the house again, his agent was there unannounced, and they said they had to figure out how to double close with financing. How is it people are so oblivous. Cash sale only, period. I know I can use trans funding, no problem, but come on. I've really got to work harder to find funding to close on these myself and be more flexible.
You can probably ask them for their proof of funds. Sometimes they will send a pre-approval letter from a bank which seems legit, but don't buy into it. Ask for a bank statement with their name linked to it.
Otherwise, ask other wholesalers in your area to help you out and split on the profits.
I thought about the proof of funds route, would anybody be put off being asked for POF just to view a property? That was my only concern. Oh yeah I know about sending to other wholesalers, but this was more about improving my skills versues just profits. Thanks appreciate the thoughts.
I wouldn't give you proof of funds just to look at a property. I also find it t a turnoff some of the screening some sellers put in their ads. The more I see that, the more I think THEY are not serious.
Your marketing should make it obvious that it is an investor deal and will be sold on investor terms. But you don't have to scream it. Also keep in mind where you are marketing. A Craig's list ad will probably reach a broad audience but an ad here or you local REIA bulletin board will be targeted to people who understand that it is an investor deal.
When they call you should ask questions like how are they going to pay and explain there is NO contingency for financing, presuming that is the case. You might ask if there intention is to wholesale the house. They probably haven't been asked that directly and it will throw them off if that is their intention.
Great advice @Ned Carey . Definitly will apply that. I'm working hard to have funds in place to close some of my future properties, have a lot of people looking for rent/lease to own.
I've looked over the marketplace, doesn't seem like its really taken off for my market. But that may be my chance to capitalize!
Join the Largest Real Estate Investing Community
Basic membership is free, forever.