Louisville, KY · Member since 2017 · 28 posts · 5 votes
Understanding what your buyers are looking for is a good way to help find the best leads, but what is the best way to build a strong network of buyers?
Investor · Indianapolis, IN · Member since 2014 · 2k+ posts · 601 votes
9y
@Zachary Peacock I do have some Strategies on how to find Cash Buyers. I would do the following:
1. Look on Bigger Pockets and connect with folks that purchase in your area and see what they are looking for and then go shopping.
2. Go to your Local Investor Meetup and find out who is buying, find out what they want, and then go shopping for properties.
3. When you do get a Property under contract, Look up on MLS or other sites all cash buyers who have bought around that property in last 6 months and send them a flyer or a postcard of you, your featured property and about your company.
4. Network with Agents, ETC and find out who are the BIG investors in your area.
You don't need a lot of Buyers to have a decent business.... I would focus on getting to know the heavy hitter buyers who buy quite a bit in your area. Thanks, hope this helps..
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Zachary Peacock The best way to build a strong network of buyers is to cultivate excellent wholesale deals. People will search you out if they find you have good deals. The one mistake I think a lot of wholesaler's make is worrying about what kind of property their buyers are looking for. Short of geographic area, when a wholesaler asks me what kind of property I'm looking for, I say a good deal. Wholesaling works the opposite way that retail real estate works - you find the house that someone is willing to sell first, not the house that someone is willing to buy
Louisville, KY · Member since 2017 · 28 posts · 5 votes
9y
@Jason Hirko Where can I find a sort of step by step to getting a property under contract? This is the most obscure part of the equation so far. Once I understand how to materialize this component of the deal, I will feel comfortable hitting the streets. @Roland Paicely What is a Bandit Sign (the sign police)?
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Zachary Peacock And potentially more importantly, you can never be sued for practicing real estate without a license. However common or uncommon that may be
Louisville, KY · Member since 2017 · 28 posts · 5 votes
9y
@Jason Hirko I live in Kentucky, directly across the river from Indiana in an area commonly known as "Kentuckiana". What is your advice regarding licensing in one or both States? If I become licensed in Kentucky will it be easier to also become licensed in Indiana? Do you recommend any particular courses or licensing programs?
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Zachary Peacock I have absolutely no idea. The basic principles will be the same, but the laws between each will have different nuances. Check out your state board of realtors or equivalent and I'm sure they can get you answers. You can't be the first person wanting to get licensed in Kentuckiana!
Raleigh, NC · Member since 2011 · 721 posts · 343 votes
9y
Zachary,
Sorry about using trade slang. However, a bandit sign is a sign that is usually located at a busy intersection. I'm sure that you've seen the 'We Buy Houses' signs posted on poles etc. Those are Bandit Signs. The term Sign Police is another industry term used for authorities that are in charge of making sure that your signs are located in a legal place. A lot of cities state that the signs are illegal in certain areas. If they see your sign they can ask you to remove it or fine you. Be sure to know the laws pertaining to Bandit Signs.
Investor · Indianapolis, IN · Member since 2014 · 2k+ posts · 601 votes
9y
@Zachary Peacock I do have some Strategies on how to find Cash Buyers. I would do the following:
1. Look on Bigger Pockets and connect with folks that purchase in your area and see what they are looking for and then go shopping.
2. Go to your Local Investor Meetup and find out who is buying, find out what they want, and then go shopping for properties.
3. When you do get a Property under contract, Look up on MLS or other sites all cash buyers who have bought around that property in last 6 months and send them a flyer or a postcard of you, your featured property and about your company.
4. Network with Agents, ETC and find out who are the BIG investors in your area.
You don't need a lot of Buyers to have a decent business.... I would focus on getting to know the heavy hitter buyers who buy quite a bit in your area. Thanks, hope this helps..
Wholesaler and Real Estate Broker · Indianapolis, IN · Member since 2009 · 438 posts · 293 votes
9y
Step by step for getting a property under contract:
1. Find a person who wants to sell their house you do this with networking, mailings,signs, website, etc 2. Get the information about the house br,bath,if tenants how much rent and do they pay on time, asking price 3. Determine what you can offer depends on neighborhood, condition, rent amounts. Get good at this. 4. Try to get seller at or below this price negotiate with seller. make the case for your offer price. 5. If you succeed at #4 then write it up use a purchase contract that works in your state 6. Advertise your deal to your buyers list or online sites like craigslist or your reia
The 2 things that take the longest are
1. learning the values of houses in your area (#3) 2. having that list of good buyers. put everyone on your buyers list you meet at reias, etc the good buyers will distinguish themselves because they will buy the good deals when you find them. The great buyers will buy fast, let you make a decent profit, and not be a pain. Find 3-10 great buyers over time and your wholesaling business will take off.
Real Estate Agent · Louisville, KY · Member since 2016 · 78 posts · 40 votes
9y
Come to the monthly KREIA meetings. There you'll find a network of buyers under one roof, for 3 hrs. You can introduce yourself to everyone, if you'd like. But don't stop there, because handing out/collecting business cards isn't relationship building. http://www.kreia.com
For instance, I met two potential cash buyers at a recent commissioner's sale. I know they were cash buyers, because they each bought a house while they were sitting next to me. I introduced myself to them, and got their contact information. At this point, I can't consider these guys part of my network, and they sure as heck don't consider me part of theirs. They don't need me, right now - they are doing fine, without me. I will have to prove to them that I'm valuable to their business for them to add me to their network.
I find best way to build a network is to offer support, service, or value to an already existing network.
Investor · Triadelphia, WV · Member since 2014 · 46 posts · 11 votes
9y
I have a follow-up question that is somewhat related; how do you handle the objection of the cash buyer wanting an address, and to schedule a viewing of a property. I have been a RE investor for 4+ years now, primarily doing fix n flips. I have "dipped my toe" in wholesaling, and I want to really focus some time/effort going forward. The one obstacle that I have ALWAYS had in the past was when I marketed a contract (property), I would have potential buyers want the address and to schedule a viewing with me before they would talk much further. And although I would try to focus the conversation on ROI, revenue, and the financials, it also circled back to he/she wanting to walk through the house. Any suggestions on how to handle this objection with the investor? And the talk track with the home owner ? ( I was always transparent and honest in stating that I might be attempting to resell the house)
Thanks in advance for the advice!
PS: as an investor who buys houses to flip, I always want to view a property before I buy as well, so I understand this reasoning.
Louisville, KY · Member since 2017 · 28 posts · 5 votes
9y
Joe Hughes Great question - My limited understanding of the situation you mentioned is as follows: If you have the property under a P/S contract, you have no reason to worry about the buyer going behind your back. What is the issue with taking the buyer to see the property? Think they will back out? Or do you just want to close the deal quickly?
Investor · Triadelphia, WV · Member since 2014 · 46 posts · 11 votes
9y
@Zachary Peacock Thanks for the reply! No, I am not concerned about anyone backing out. Let me define my experiences in a little more detail; first, I live in an area where there are very few wholesalers, and the concept itself is not widely known. Therefore, when I have sat down with sellers and told them that I am an investor, and my goal is to resell the house in a number of ways; by reselling it to another investor, by buying it myself and either rehabbing it and selling it or by renting it out, OR any other means, and I had them sign an acknowledgement of that statement. I have then marketed the house, and a some investors have shown interest. One of the first questions from all of them has been "when can we view it?"
The disconnect for me, and the homeowners is we didn't expect to have showings. The pushback from the homeowners has been that is not what they signed up for, and they quickly sour on the whole process, and thus far they have all refused to have their houses shown. (They have all been owner-occupied homes).
Should I perhaps be more clear in my conversations with them upfront that there may be multiple showings, and set the expectation that strangers will be coming through?
I have never seen this step in the process discussed in any on my readings on wholesaling, and it just happens to be my biggest obstacle.
Louisville, KY · Member since 2017 · 28 posts · 5 votes
9y
@Joe Hughes - Thanks for the detailed explanation -and please, take my advice with a grain of salt as I am new to real estate, but I am very experienced in sales, customer relations, and account management. The key to your troubles is a simple fix, in my opinion. You are helping the sellers solve a problem, and are prepared to inject cash into their hands. Being confident that you offer immense value to the seller is huge in how you communicate the potential sales process. Being up front and confident should quickly eliminate the shock and confusion on the the seller's part, and the same can be said for the buyer if you communicate the expectations of you or the seller, or simply the nature of the transaction. Communication is critical - people hate surprises in big money transactions. Setting the expectations and outlining the potential process to follow should help.