Cold call qualifying a list of cash buyers

13 Replies

Setting aside attending REIA meetings and other local networking, which is great for people in the area, do you guys feel good about pulling a list of local cash buyers (via listsource, title co. etc), looking up their contact info, and cold calling them to introduce yourself and qualify their buying criteria?

Anything cold is a bit tough for me. But I will do it if it gets results. i figure I only need 5-10 good cash buyers to move a deal quickly.

One alternative may be waiting until I have a deal before making the calls. This adds time pressure (what if I can't find their phone numbers) but makes for an easier foot in the door rather than just calling to qualify. 

I'd like to hear the opinions of other wholesalers especially if you have pulled a cash buyer list and done the initial intro and qualificaiton on it, thanks.

I am not a fan of cold calls like that I would never trust anyone who cold called and wanted to sell me a multi $100k asset there would just be too many red flags.

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@Sean Dezoysa,

I like your strategy.  I'm looking up recent sales where it was clearly by an investor and I'm gathering their contact information.  I'm using whatever online resources I can find, including the state corporation commission where you can find the registered agent for any business entity.

I will be calling them (next step) just to start a relationship with them.  I'll let them know what I'm doing and that I want to bring them the deals they're looking for.  I'll ask them what they're looking for and where (armed with the knowledge of one or two of their recent deals).

I will not waste their time, and I'll make sure they know that.  I'll keep the conversation on course and direct to the point - unless they get talkative.  In which case, I'm happy to get to know them better.

Buyers want properties, and the professionals don't really care where they come from as long as they're good deals.  I find that they are definitely happy to be added to my buyers list.

This is a good idea. But I wouldn't call up the investors if you don't have a deal ready for them to buy. As you get more involved in the real estate industry you will see that the real players in your market don't really like small talk. They would want you to get to the point and not waste their time.

You can try to get access to the MLS or try to use the county records and Zillow to look up the properties they are currently buying and once you have a property under contract that is similar to what they buy then you can call them.

@Sean D I would recommend building your buyers list in person. I dont think you will have much success cold calling buyers unless you have a specific deal you are calling them about. There are much better ways to connect with cash buyers. There are a lot of fake cash buyers and tire kickers out there. Imagine getting your first deal and reaching out to your buyers list and having them all flake when you need them the most and have a deadline approaching. Its the worst. Get out there and meet your buyers face to face! Especially since you are new! Ask them where they buy, what they buy, what price range is their sweet spot etc. You really need to be doing this in person. Especially since you are new. Just my 2 cents.

Originally posted by @Raven Henderson:

Hi @Sean D ! Are you a wholesaler? 

 Sure am Raven! Just getting started though

Originally posted by @Lydia T.:

@Sean D I would recommend building your buyers list in person. I dont think you will have much success cold calling buyers unless you have a specific deal you are calling them about. There are much better ways to connect with cash buyers. There are a lot of fake cash buyers and tire kickers out there. Imagine getting your first deal and reaching out to your buyers list and having them all flake when you need them the most and have a deadline approaching. Its the worst. Get out there and meet your buyers face to face! Especially since you are new! Ask them where they buy, what they buy, what price range is their sweet spot etc. You really need to be doing this in person. Especially since you are new. Just my 2 cents.

Thanks for your input Lydia. I know in person is ideal, but my job keeps me outside the US so it's virtual/remote wholesaling or nothing. I guess I'll follow your advice to wait until I have a deal, hopefully the concreteness of a house under contract offsets the lack of me being there to meet in person.

@Sean D why not JV with other wholesalers? If you are out of the country you will need boots on the ground to help with appointments, comps, etc. Why not partner with a local wholesaler and split the deals 50/50? You do the marketing and the initial seller contact and then your boots on the ground person handles the appointments, getting the contract signed and getting the contract wholesaled.

If you are ever interested in the DFW area send me a message.

Originally posted by @Lydia T.:

@Sean D I would recommend building your buyers list in person. I dont think you will have much success cold calling buyers unless you have a specific deal you are calling them about. There are much better ways to connect with cash buyers. There are a lot of fake cash buyers and tire kickers out there. Imagine getting your first deal and reaching out to your buyers list and having them all flake when you need them the most and have a deadline approaching. Its the worst. Get out there and meet your buyers face to face! Especially since you are new! Ask them where they buy, what they buy, what price range is their sweet spot etc. You really need to be doing this in person. Especially since you are new. Just my 2 cents.

I have to agree with you, which is why I prefer meetups and REIA meetings.

But, out of curiosity, how would you reach out to buyers you find through other means (such as researching recent investor sales)?  I was thinking of cold calling them to introduce myself and get their permission/buy-in to be added to my buyers list.  Would you wait to reach out until you actually have a deal, or would you contact them beforehand to get the information you mentioned?

@Barry Pekin In the interest of not wasting someones time, I think if you are going to cold call an investor you discovered using recent sales data I would recommend having a deal to call them about. Also you can reach out to the agents that are listing their rehabs. Call them up and tell them who you are and put them on your buyers list since they have access to investors that are actively buying and flipping homes. More and more I am seeing messages here on BP from agents who have investor clients and they want to provide as much value as possible. They realize that its hard to find deals on the MLS and they need to help find off market deals for these investor clients on order to remain beneficial. I think this is awesome btw.

Also Barry, I have been exploring the idea of adding these big ibuyers and big sfh rental companies to a wholesalers buyers list. You would probably have to double close or purchase the property first, but I think there is an opportunity there. These guys have a ton of cash to purchase and the margins they are looking for are much slimmer than what a single fix and flip or buy and hold investor is looking for. Seems like it would be a great solution for wholesalers who dont have an extensive buyers list and have a deal they need to get sold.

@Aaron K. The beautiful thing about TX is that its a non disclosure state, so while they would be able to see there was a recent sale they wouldn’t know for how much. I have done some just for the heck of it research and discovered that they wont deal with a wholesaler doing an assignment because they will only communicate with the actual property owner, but a wholesaler who can close on the property and be on title could call these guys up and probably get an offer. Also, big single family rental companies like Invitation Homes and American Homes for Rent are probably more likely to be willing to buy properties from wholesalers. Thanks for the input though! Much appreciated!

@Lydia T. Agree on the big SFR rental companies but you would need to do due diligence on past listings for any wholesale to an iBuyer because let's say the owner lists on MLS for $150,000 then cancels the listing and sells to you for $145,000 you won't get a good offer from the iBuyers because they do have that information.

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@Sean D

Don't forget talking to property owners is also tough... 

So, it's best to get a deal under contract so that when you start talking to investor you have a deal you are able to use to gauge their interest as well as what kind of deal they are looking for. 

Remember, wholesaling is basically marketing (inbound and outbound), so be ready to make a ton of calls.