Cash buyers are not serious
Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes
Cash buyers are not serious
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes@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.
77 Replies
- 10yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Leigh C I see wholesalers quit a bit on my huds.. I don't actually deal with them personally but I see it as a regional thing See some on the west coast but not nearly as many as in the bigger cities in the rust belt and mid west and deep south were there are so many distressed assets and clear demarcation of A B C D F neighborhoods.
What I do get though is a TON of direct mail either wanting to add me to their list or sell me something... the funny part is I will make a call or two a week just to check in.. and I would say less than 10% answer and about the same even bother to call back...
its a fragmented business at best... and for sure since you have everyone and their brother telling the mass's that the easiest way to get into real estate is wholesaling or bird dogging then of course we are inundated with people that have no expreince and really don't know what a deal is or is not.. I suspect the failure rate is right at 95% for these
- Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes10y
same here
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes10y
Originally posted by @Steve B.:
I'd rather have a subjectively nominally derogatory remark made about one of my posts than waste 10 minutes of my time on some ********t craigslist post.
Well, yeah. Hopefully responding to a dummy ad doesn't take 10 minutes, but one minute is one too many. I see this stuff all the time here on BP. Expedient only works when you're not the victim. Lie to tenants or applicants about not being the owner, but be bummed if tenants use sham references that lie for them. I don't believe in karma but the golden rule still works.
- Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes10y
funny how this bothers you guys so much that a forum topic has been trolled to death. Quite frankly I'm embarrassed for you the way I am for American idol tryouts that cannot sing. The facts is that many people that use such marketing methods are not wasting your time. They are lead generators that find excellent deals that you miss out on for being judgemental. Regardless, let's just agree to disagree. I'm done here. On to other threads...
wow, this thread went downhill fast. So many hurt feelings.
@Brandon Connell I find cash buyers using CL all the time without a fake ad. Simply do a search of rental properties in the town your property is located in. Call them and introduce yourself and ask them if they are interested in adding more off market properties to their portfolio this year. If they are a legit investor, you can add them to your list and get them info on the property. I require POF prior to showings from any investor I have not worked with unless I know they buy already from other wholesalers I know.
I also find cash buyers at the monthly sheriff sales. Introduce yourself to the folks who bid on properties in the areas you have properties.
In the past 6 weeks, I've added over 100 cash buyers to my list without mailings. Roll up your sleeves and make it happen.
- Investor · Downers Grove, IL · Member since 2015 · 353 posts · 213 votes10y
@Adrien C. kudos to you for building a list ETHICALLY AND CORRECTLY. We can discuss the ethics of telling a seller you will buy their property without intending to buy it yourself in another thread someday.
But I also want to say, I applaud that you list yourself as "Husband and Father" first on your profile. you have your head on your shoulders and have your priorities defined properly! Originally posted by @Dale Stevens:
@Adrien C. kudos to you for building a list ETHICALLY AND CORRECTLY. We can discuss the ethics of telling a seller you will buy their property without intending to buy it yourself in another thread someday.
But I also want to say, I applaud that you list yourself as "Husband and Father" first on your profile. you have your head on your shoulders and have your priorities defined properly!Thanks @Dale Stevens: I work hard every day to give my family a comfortable life and to be able to be present with them as well.
I have no ethical qualms wholesaling because I'm upfront with the seller. They have a specific and valid reason to sell with me (vs the traditional realtor methods) and I give them a few options to solve their problem. They know upfront what I will be doing. The majority are fine with it because the important thing to them is selling the house quickly. However, I have lost some potential deals because they are not comfortable with it. I'm okay with that because I can sleep well at night (well, except for the 5 month old baby who doesn't sleep well yet).
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes10y
@Brandon Connell I saw a lot of help offered, good ideas for finding cash buyers on the cheap. I offered to create a list of cash buyers (which is kind of my specialty) for you and you didn't take me up on it. I saw some objections regarding using dummy ads. And LOTS of justifications for placing dummy ads. How is that trolled to death? That's the way these forums work.
If you already know how to generate leads and cash buyer lists, then why bother posting the question. Something isn't adding up there.
- Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes10y
Originally posted by @Adrien C.:
wow, this thread went downhill fast. So many hurt feelings.
@Brandon Connell I find cash buyers using CL all the time without a fake ad. Simply do a search of rental properties in the town your property is located in. Call them and introduce yourself and ask them if they are interested in adding more off market properties to their portfolio this year. If they are a legit investor, you can add them to your list and get them info on the property. I require POF prior to showings from any investor I have not worked with unless I know they buy already from other wholesalers I know.
I also find cash buyers at the monthly sheriff sales. Introduce yourself to the folks who bid on properties in the areas you have properties.
In the past 6 weeks, I've added over 100 cash buyers to my list without mailings. Roll up your sleeves and make it happen.
I find them without fake ads as well, but I agree with the practice as its standard marketing OP.
- Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes10y
Originally posted by @Account Closed:
@Brandon Connell I saw a lot of help offered, good ideas for finding cash buyers on the cheap. I offered to create a list of cash buyers (which is kind of my specialty) for you and you didn't take me up on it. I saw some objections regarding using dummy ads. And LOTS of justifications for placing dummy ads. How is that trolled to death? That's the way these forums work.
If you already know how to generate leads and cash buyer lists, then why bother posting the question. Something isn't adding up there.
I was simply interested in others experiences with said buyers. I had no idea it would turn into a bashing of standard marketing which I actually find highly offensive. Particularly Jay who pretends to be ethical by not agreeing with it. Nothing unethical about standard lead gen. If someone doesn't agree with it then don't do it. If a buyer gets offended by it then certainly go ahead and get bent out of shape and miss the opportunities that lead gen will do for you. It's ridiculous that everyone is offended by everything these days. I'm offended by him being offended.
- Wholesaler · Philadelphia, PA · Member since 2015 · 24 posts · 12 votes10y
Forget marketing channels, marketing pieces, whether or not cash buyers are serious, etc.; the fundamental problem with wholesaling in so many markets is that the economic situation of Americans in late 2015 is vastly different than it was during the salad days when wholesalers were "killing it."
Economic conditions are starkly different. After 2008, credit was tight, which made it more difficult to get a mortgage loan. All the while, large layoffs were happening in droves, house values were plummeting, and due to the credit crunch, a lot of homeowners couldn't refinance. The result: many homeowners were clamoring to get out from under their houses. It was during this swirl of post-2008 economic misfortune that some wholesalers in certain moribund housing markets were making a fortune.
Unfortunately, those economic conditions don't exist across the United States anymore. The same deep pool of motivated (i.e. desperate) sellers simply doesn't exist anymore in most markets (less inventory), which is why a lot of the big wholesalers have turned towards selling systems/how-to information for aspiring wholesalers. Look, no system is going to overcome unfavorable economic conditions and market realities.
Are there still wholesale deals to be had? Sure there are, and some markets are more favorable than others, but there are a lot fewer, all the while a many more wholesalers of varying abilities and levels of commitment have entered the field - increasing competition.
Now that I've said my piece, I'll sit back and await the you're-too-negative reply posts.
- Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes10y
Originally posted by @Ryan Igbanol:
Forget marketing channels, marketing pieces, whether or not cash buyers are serious, etc.; the fundamental problem with wholesaling in so many markets is that the economic situation of Americans in late 2015 is vastly different than it was during the salad days when wholesalers were "killing it."
Economic conditions are starkly different. After 2008, credit was tight, which made it more difficult to get a mortgage loan. All the while, large layoffs were happening in droves, house values were plummeting, and due to the credit crunch, a lot of homeowners couldn't refinance. The result: many homeowners were clamoring to get out from under their houses. It was during this swirl of post-2008 economic misfortune that some wholesalers in certain moribund housing markets were making a fortune.
Unfortunately, those economic conditions don't exist across the United States anymore. The same deep pool of motivated (i.e. desperate) sellers simply doesn't exist anymore in most markets (less inventory), which is why a lot of the big wholesalers have turned towards selling systems/how-to information for aspiring wholesalers. Look, no system is going to overcome unfavorable economic conditions and market realities.
Are there still wholesale deals to be had? Sure there are, and some markets are more favorable than others, but there are a lot fewer, all the while a many more wholesalers of varying abilities and levels of commitment have entered the field - increasing competition.
Now that I've said my piece, I'll sit back and await the you're-too-negative reply posts.
That was well said and an excellent writeup of the current situation. It does explain some things. I have found some serious cash buyers since this began. It may simply harder because of the market.
- Wholesaler · Cleveland, OH · Member since 2015 · 9 posts · 2 votes10y
I have found the same thing and agree with Ryan. The market has changed radically. We have switched from selling to investors to selling to owner occupants. We don't worry about the CAP rate or returns. The only interests are a good mortgage a good price and yes location. And since we deal mostly with condos getting financed for the non-warrantable deals used to be a huge problem.
- Wholesaler · Cleveland, OH · Member since 2015 · 9 posts · 2 votes10y
Brandon,
How is Knox College? I am an alumni from there.
- Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes10y
posted by @Jeffrey Moffie:
Brandon,
How is Knox College? I am an alumni from there.
It's a single man's paradise just with all the beautiful college girls walking around south st by cherry and Kellogg.
- Investor · Redondo Beach, CA · Member since 2009 · 147 posts · 129 votes10y
Originally posted by @Ryan Igbanol:
Forget marketing channels, marketing pieces, whether or not cash buyers are serious, etc.; the fundamental problem with wholesaling in so many markets is that the economic situation of Americans in late 2015 is vastly different than it was during the salad days when wholesalers were "killing it."
Economic conditions are starkly different. After 2008, credit was tight, which made it more difficult to get a mortgage loan. All the while, large layoffs were happening in droves, house values were plummeting, and due to the credit crunch, a lot of homeowners couldn't refinance. The result: many homeowners were clamoring to get out from under their houses. It was during this swirl of post-2008 economic misfortune that some wholesalers in certain moribund housing markets were making a fortune.
Unfortunately, those economic conditions don't exist across the United States anymore. The same deep pool of motivated (i.e. desperate) sellers simply doesn't exist anymore in most markets (less inventory), which is why a lot of the big wholesalers have turned towards selling systems/how-to information for aspiring wholesalers. Look, no system is going to overcome unfavorable economic conditions and market realities.
Are there still wholesale deals to be had? Sure there are, and some markets are more favorable than others, but there are a lot fewer, all the while a many more wholesalers of varying abilities and levels of commitment have entered the field - increasing competition.
Now that I've said my piece, I'll sit back and await the you're-too-negative reply posts.
Great post and definitely summarized from someone with experience. I do have one nitpick and its just a personal pet peeve of mine. You write "unfortunately those economic conditions don't exist". I get where you are coming from as an investor, but one thing I really strongly believe in, is that an investor has an opportunity (maybe even obligation) to help people out. That is true when the economy is bad but we need to have the same mindset when the economy is good and not wish for the bust days.
Again, I understand your take and I myself hope I am in a better situation to redistribute some wealth at the next downturn but ALL UP, we should be happy we are not in 2008 again.
I don't know, maybe its just what I tell myself so I can sleep at night not thinking of myself as a manipulator or taking advantage of others.
BTW, I am in NO WAY trying to drop a holier than thou statement here, I am simply stating that when I hear other investors wish for 2008 it makes me cringe a bit. I get it, if you were wholesaling or acquiring rentals pennies on the dollar you might just miss that, but I would rather leave some $ on the table and have a solid economy than wish for a bad one.
It doesn't matter anyways because the cycle says bad is coming so maybe we will all do 'well' at that time.
**I realize this isn't the topic of this discussion but I figured we were enough off topic over the past 4 pages I could keep us there with this... ha**
- Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes10y
Real estate is constantly changing, and that's a good thing. It may have been a great market for wholesaling back in 08 but the best real estate investor is one that can adapt.
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes10y
Originally posted by @Brandon Connell:
Originally posted by @Account Closed:
@Brandon Connell I saw a lot of help offered, good ideas for finding cash buyers on the cheap. I offered to create a list of cash buyers (which is kind of my specialty) for you and you didn't take me up on it. I saw some objections regarding using dummy ads. And LOTS of justifications for placing dummy ads. How is that trolled to death? That's the way these forums work.
If you already know how to generate leads and cash buyer lists, then why bother posting the question. Something isn't adding up there.
I was simply interested in others experiences with said buyers. I had no idea it would turn into a bashing of standard marketing which I actually find highly offensive. Particularly Jay who pretends to be ethical by not agreeing with it. Nothing unethical about standard lead gen. If someone doesn't agree with it then don't do it. If a buyer gets offended by it then certainly go ahead and get bent out of shape and miss the opportunities that lead gen will do for you. It's ridiculous that everyone is offended by everything these days. I'm offended by him being offended.
So dummy ads are "standard lead generation"? Says who? Claiming something is standard doesn't make it lawful or ethical or effective. @Jay Hinrichs is pretty damn mild mannered on this site IMO. He's got plenty of leads and is plenty well funded to take anything on this site too seriously. He shares his opinion as just that, and says to each his own. Everyone would do well to that. Plus you never know when you'll need the funding of someone of like Jay. Why burn bridges defending dummy ads.
- Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes10y
well, to answer you, let's look at how some dummy ads become. When we put up a legit ad and find an assignee, many of us don't jump on removing the ad. Other responses occur. This is normal. I don't know anyone that puts up an ad with a false picture and info. That is not a dummy ad that was mentioned by other posters. Jay however, assumed this to be the case. Standard OP is not taking down a real and successful ad. If my defense of the practice burns bridges then guess what... For every 1 offended there are 10 who agree with me.
- Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes10y
Today's thread has been brought to you by the letters D and B...
- Investor · Spring Grove, IL · Member since 2014 · 21 posts · 5 votes10y
Originally posted by @Adrien C.:
wow, this thread went downhill fast. So many hurt feelings.
@Brandon Connell I find cash buyers using CL all the time without a fake ad. Simply do a search of rental properties in the town your property is located in. Call them and introduce yourself and ask them if they are interested in adding more off market properties to their portfolio this year. If they are a legit investor, you can add them to your list and get them info on the property. I require POF prior to showings from any investor I have not worked with unless I know they buy already from other wholesalers I know.
I also find cash buyers at the monthly sheriff sales. Introduce yourself to the folks who bid on properties in the areas you have properties.
In the past 6 weeks, I've added over 100 cash buyers to my list without mailings. Roll up your sleeves and make it happen.
- Austin, TX · Member since 2016 · 16 posts · 2 votes10y
I would say go straight to craigslist and type in cash buyers
I would suggest screening them.
Ask them pointed questions like.
What kind of houses are they looking to buy and will buy ten times if you bring it to them.
Its all about positioning I would ask them if they are a cash buyer if they say yes ask them for a proof of funds and how fast can they close.
It's all about the relationships you build you can go the county and get the records of all the houses sold in the last 30 days and who bought them there is your targeted list
Hope that helps
Jack
- Investor · Galesburg, IL · Member since 2015 · 90 posts · 25 votes10y
Hi Jack. This is a really old post. I have since gotten a ton of cash buyers across the country. I can't keep up with them on contracts. When first starting you will find its a numbers game not only on contracts but also on cash buyers.
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