Cash buyers are not serious

Wholesaling
10yFollow

Cash buyers are not serious

Brandon Connell
Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes

I have a property in Illinois under contract with some good meat on the bones, and only a couple of cash buyers (or so they say). So far, they are dodgy. I read that the hardest part of wholesaling is getting the contracts, but I have the exact opposite problem. How can I get serious cash buyers when I have absolutely no budget for postcards?

1Reply
137 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y

@Anthony Davis  that's incredible people putting up false ads to attract buyers..

there is a reason RE business is regulated that type of behavior in a RE broker would be totally illegal... you guys may be proud of it.. but I think its just put wholesaling in the lowest light of wanna bee's and any thing goes with no regard to who's time your wasting or any ethics you may or may not have..

now this is not derogatory its how I see it you can take it any way you want. If someone put up a false add it would absolutely be the last time I talked with them and I would tell everyone I know not to bother with that ya hoo    :)  incredible.. no wonder states are cracking down on these activities.

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
11Reply
See this reply in the discussion

77 Replies

Jump to latestLatest
  • Chris K.Pro Member
    Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
    10y

    Not trying to shoot you down but have you considered that maybe it's not that good of a deal? I see ads or get emails all the time where the numbers they have look amazing but when I do my own they're not as good. Again not trying to shoot you down but what's "meat" to you may look like just "bones" to someone else.

    Maybe try posting it in the marketplace here, there are definitely serious buyers here.

    2Reply
  • Brandon Connell
    OP
    Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes
    10y

    No, I am an experienced investor. Just new to wholesaling. I know a good deal. Its just that the cash buyers I am dealing with are not in the business full time or something, and they don't respond with urgency.

    As for the market, I refer to the statement where I said no budget. I am literally starting over after my ex wife scammed the courts during the divorce while on meth. I can't even fix my truck let alone afford the marketplace fee.

    2Reply
  • Rocky V.
    Rental Property Investor · Arlington, TX · Member since 2012 · 788 posts · 640 votes
    10y

    Get with a Realtor in your area and ask them to do a search within 1/2 to 1 mile radius of subject property for buyers that paid cash within the past 6 months. I would also recommend attending local REI meet ups and posting on BP as well.

    3Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Brandon Connell  I am in Oregon send me a PM with the address.. and what you need out of it... maybe I can give you an unbiased opinion that may help you going forward.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Polar Prutaseranee
    Flipper/Rehabber · Tustin, CA · Member since 2015 · 433 posts · 103 votes
    10y

    You can always find cash buyers at the auctions too

    2Reply
  • Rob Hayes
    Real Estate Broker · Downers Grove, IL · Member since 2012 · 93 posts · 57 votes
    10y

    @Rocky V. I think that you gave great advice about having a realtor search for the cash closings in the past 6 months!!!  That's an awesome idea.

    1Reply
  • Brandon Connell
    OP
    Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes
    10y

    I am using the cash buyers database. I have a 30 day free trial. I have a list, but addresses are useless to me because I can't send out mass postcards right now. I'm guessing it would be the same result from realtors, but I will give it a try.

    0Reply
  • Brandon Connell
    OP
    Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes
    10y

    I'm starting to think I better cool off the contracts until I have actual cash buyers with a phone number and eagerly awaiting my deals. The leads of motivated sellers will never be a problem for me.

    1Reply
  • Jacqueline Carrington
    Investor · Corona, CA · Member since 2014 · 746 posts · 372 votes
    10y

    Put a dummy ad on Craigslist that you have property 40%+ below market, cash only deal. See who responds.

    5Reply
  • Brandon Connell
    OP
    Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes
    10y
    Originally posted by @Jacqueline Carrington:

    Put a dummy ad on Craigslist that you have property 40%+ below market, cash only deal. See who responds.

     I have.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Jacqueline Carrington  while I hear what your saying if someone did that to me it would be the last time  LOL.

    plus I never look at craigslist anyway   :)

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    4Reply
  • Jacqueline Carrington
    Investor · Corona, CA · Member since 2014 · 746 posts · 372 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Jacqueline Carrington  while I hear what your saying if someone did that to me it would be the last time  LOL.

    plus I never look at craigslist anyway   :)

     LOL. Yes, but since he actually has a property under contract, he can send them that deal. To Jay: Post the deal numbers here for analysis. I'm sure you can get some great feedback.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Jacqueline Carrington  Next post we will see on BP  is wholesaler is crazy thinks property has 50k equity when in fact it has zero  :) 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Brandon Ingegneri
    Rental Property Investor · Providence, RI · Member since 2015 · 1k+ posts · 594 votes
    10y

    It is unfortunately the nature of the business.  You are going to attract 5-6 idiots or tire kickers for every 1 legitimate cash buyer that you come across.  One thing that I will say from personal experience, and it may or may not be applicable to you...

    The presentation of the deal makes a huge difference to the type of buyers that are attracted.  When people call me and say that they are a cash buyer, I know 99% of the time, they are trying to get a commission or middle man it.  You can see those guys coming a mile away.  When those guys call me trying to shop me a deal, their presentation is what usually turns me off.  

    Whether it applies to you or not, you have to be a concise and dynamic salesman, or it has to be a red hot deal where people will fight over it regardless.

    2Reply
  • Anthony Davis
    Wholesaler · Charlotte, NC · Member since 2015 · 127 posts · 63 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Jacqueline Carrington  while I hear what your saying if someone did that to me it would be the last time  LOL.

    plus I never look at craigslist anyway   :)

     Many people put ghost ads on Craigslist on this side of the country. It's common practice.

    1Reply
  • Anthony Davis
    Wholesaler · Charlotte, NC · Member since 2015 · 127 posts · 63 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Jacqueline Carrington  Next post we will see on BP  is wholesaler is crazy thinks property has 50k equity when in fact it has zero  :) 

     Jay your language seems a little derogatory.

    1Reply
  • Anthony Davis
    Wholesaler · Charlotte, NC · Member since 2015 · 127 posts · 63 votes
    10y
    Originally posted by @Brandon Connell:

    I have a property in Illinois under contract with some good meat on the bones, and only a couple of cash buyers (or so they say). So far, they are dodgy. I read that the hardest part of wholesaling is getting the contracts, but I have the exact opposite problem. How can I get serious cash buyers when I have absolutely no budget for postcards?

     Brandon, keep persisting. @Rocky V gave a great recommendation. It is also, my recommendation. Stay sure of yourself; and move forward with confidence.

    Anthony Davis

    1Reply
  • Frederick Wenger
    Roofer and handyman · Chicago, IL · Member since 2015 · 13 posts · 7 votes
    10y

    Just because they say they are cash buyers does not mean they are.  You could discuss your deal on the marketplace here and maybe find a real cash buyer?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Anthony Davis  that's incredible people putting up false ads to attract buyers..

    there is a reason RE business is regulated that type of behavior in a RE broker would be totally illegal... you guys may be proud of it.. but I think its just put wholesaling in the lowest light of wanna bee's and any thing goes with no regard to who's time your wasting or any ethics you may or may not have..

    now this is not derogatory its how I see it you can take it any way you want. If someone put up a false add it would absolutely be the last time I talked with them and I would tell everyone I know not to bother with that ya hoo    :)  incredible.. no wonder states are cracking down on these activities.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    11Reply
  • Dale Stevens
    Investor · Downers Grove, IL · Member since 2015 · 353 posts · 213 votes
    10y

    I applaud and second @Jay Hinrichs comments. 

    As to "Cash Buyers' not being cash buyers, that my be part of it, but are you sure about the "MEAT" in your deal? That, to me, is usually where people are off. The numbers are incorrect.

    The key to wholesaling (if you choose to do it), is to have good buyers. Not to get deals, but have good buyers. Having tons of properties does you no good if you have no one to buy them. Many a business has failed in this country, not because it didn't have product, but because no one wanted what they sold, how they sold it, or the price at which they sold it.

    Now I must go, have to go buy some electronics from Circuit City, if they don't have it, I might stop at CompUSA. Then I will pick up some stuff for the house from Linens & Things.  from there I will be heading to Borders Books to get a new book on investing. (I think you see my point here) All those companies had inventory, but not buyers for the inventory they had.

    5Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Dale Stevens  Touche'  reminds me of the car business and the loss leader.. well the AGs cracked down on them and they must Have ONE car at that price...

    I really never understood what was taught about wholesaling among those that do it and what is recommended by those here on BP... however I just don't think you can have a long term stable business built on deceit and fraud.  IE your sales tactics

    1. say your a cash buyer when your not

    2. say you can close in 3 days when you cant

    3. Say your partner has to approve when you really don't have a partner you just have a list of people who you probably have no clue as to who they are or their abilities.

    4. Long Due Diligence clause with the only intent to tie up the property while you try to find this buyer.

    5. NOw this ghost ad crap... that one is really bad... put an add in when you really have nothing to sell and basically lie to people to get them to respond.

    any way  just not my cup of tea.... and how anyone can think this is ethical business practice I think needs to do a double check.. how would you like it if someone is doing this to your mother !

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    5Reply
  • Brandon Connell
    OP
    Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes
    10y

    i did post details and specifics but a mod deleted it because I was giving away the assignment so I won't post it again. I won't be upgrading either if I am charged to give away a deal. But basically, there is leeway to reduce and renegotiate and there has been another wholesaler trying to do the deal at a much higher price.

    0Reply
  • Jacqueline Carrington
    Investor · Corona, CA · Member since 2014 · 746 posts · 372 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Dale Stevens  Touche'  reminds me of the car business and the loss leader.. well the AGs cracked down on them and they must Have ONE car at that price...

    I really never understood what was taught about wholesaling among those that do it and what is recommended by those here on BP... however I just don't think you can have a long term stable business built on deceit and fraud.  IE your sales tactics

    1. say your a cash buyer when your not

    2. say you can close in 3 days when you cant

    3. Say your partner has to approve when you really don't have a partner you just have a list of people who you probably have no clue as to who they are or their abilities.

    4. Long Due Diligence clause with the only intent to tie up the property while you try to find this buyer.

    5. NOw this ghost ad crap... that one is really bad... put an add in when you really have nothing to sell and basically lie to people to get them to respond.

    any way  just not my cup of tea.... and how anyone can think this is ethical business practice I think needs to do a double check.. how would you like it if someone is doing this to your mother !

     There are many bad/wanna-be wholesalers for every 1 good one. I believe wholesaling can be done properly when the wholesaler is upfront about who they are and how the transaction works with the seller.

    Good wholesalers and true cash buyers can provide real help to real people in need

    4Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Jacqueline Carrington  no doubt just like in any walk of life...

    its just that folks are impressionable on BP and you get 17 different opinions.. then folks on BP run down any guru or paid mentoring yet those that respond many times have no clue as to what they are talking about and or their ethics in my opinion is misguided.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Anthony Davis
    Wholesaler · Charlotte, NC · Member since 2015 · 127 posts · 63 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Anthony Davis  that's incredible people putting up false ads to attract buyers..

    there is a reason RE business is regulated that type of behavior in a RE broker would be totally illegal... you guys may be proud of it.. but I think its just put wholesaling in the lowest light of wanna bee's and any thing goes with no regard to who's time your wasting or any ethics you may or may not have..

    now this is not derogatory its how I see it you can take it any way you want. If someone put up a false add it would absolutely be the last time I talked with them and I would tell everyone I know not to bother with that ya hoo    :)  incredible.. no wonder states are cracking down on these activities.

    Life is full of experiences that people in general do not like. Business gets bad in my opinion when people initiate the actions of others from a negative stance. If you had a bad experience, that is your experience. It is VERY OBVIOUS that you did not start your real estate investing career when you had NO MONEY TO SPEAK OF. You certainly do not speak from a poor person's perspective. Your tone comes from above to look down on  people who are starting with very little means to propel themselves out of an undesirable state. Wholesalers are not bound by the brokers' laws that you were/are if the wholesaler is not a broker. 

    When I am not familiar with a strategy, I read, look, and listen to learn. You are speaking as though your own experiences are THE ONLY EXPERIENCES that work. Have you heard of the successful investor *************? Ron LeGrande? Cody Sperber? The GURUS that you speak of who are legitimate and have changed my life, because of their messages and passion to help others? Did you ever have a real estate investing mentor that you were thankful to have come into your life? Where in the world is your compassion?

    2Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free