Houston, TX · Member since 2013 · 1k+ posts · 114 votes
My name is Marlon Wilson,
I'm a fairly new wholesaler that comes across plenty of properties, I have a descent buyers list, but would rather deal with a smaller amount of buyers who pay cash. How can I screen or find buyers looking for great deals? Thanks
Sorry, Lisa DuFaux, but I think you're interpreting that language too tightly. It says "is legally entitled to convey the property" not "is the owner of record" or anything like that. If I have an option to buy a property, I am, in fact, the ONLY party that can legally convey that property. The owner cannot, because my option prevents them. Same situation if I have a valid purchase and sale agreement with the owner. My agreement prevents them from conveying the property.
Now, there may be other regulations that would prevent someone in FL from listing a property unless they're the owner, but this one doesn't do it.
Find great deals and the cash buyers will come to you. Just because you're coming across "plenty" of properties doesn't mean they are good deals -- that's the trap too many new wholesalers fall into; they assume that everything they see is a deal when in reality, 99% of what you're looking at isn't going to be attractive to investors.
Find great deals, don't waste investor's time and then you'll have plenty of cash buyers...
That's a great response J Scott, I couldn't agree more.
I'm curious though, to hear more about about how specifically you would dredge up some cash buyers.
Suppose you were dropped off in a totally new market today. You don't know anybody. You have zero existing connections and no past experience in the area to back yourself up.
If you came across one of those killer, mouth-watering deals and didn't have to cash to buy it yourself... now what?
Would you start calling up realtors? Posting ads on craigslist? Sending out some mail? Running bandit signs all over town?
Be careful about marketing properties (to end buyers) if you do not own the properties. That is taking on the role of a broker, which of course requires a license.
As Kyle suggests you should explore networking opportunities in your local community. An ad in Craiglist that says "Looking for cash buyers to purchase houses at a significant discount to ARV" might not be a bad idea, but not having tried it, I'm not sure how productive it might be.
Market at local REIA meetings, on Craigslist, on the MLS, here on BP, etc. Think like an investor -- if you were looking to buy houses for cash, where would you look? That's where you want to market as well...
Makes sense J Scott - thanks. I guess it's all pretty common sense stuff, it's just a matter of taking the initiative to get out there and actually do it.
This is an awesome discussion. I am in the middle of my first direct mail campaign looking primarily for a fix and flip for me. However I have come across a few properties that may become deals but are not in the part of town I want to invest in.
J Scott mentions the the MLS. I am in Tampa and people are paying crazy money for properties on the MLS. If I get a property under contract can I partner with a Broker and have them list assignment on mls as long as I disclose this to end buyer? Or do I need to buy property and then list it with broker.
Official Florida State contract has a section on contract assignment FYI.
Mike, I am a licensed Realtor in Florida (about an hour north of Tampa) and my answer would be no, you can't list a property if you aren't the owner. This doesn't have to do with the eventual sales contract, but with the listing agreement. The FAR listing agreement includes the following sentence, "Seller certifies and represents that he/she/it is legally entitled to convey the property and all improvements." If the deed isn't in your name, you wouldn't be legally entitled to convey it.
Sorry, Lisa DuFaux, but I think you're interpreting that language too tightly. It says "is legally entitled to convey the property" not "is the owner of record" or anything like that. If I have an option to buy a property, I am, in fact, the ONLY party that can legally convey that property. The owner cannot, because my option prevents them. Same situation if I have a valid purchase and sale agreement with the owner. My agreement prevents them from conveying the property.
Now, there may be other regulations that would prevent someone in FL from listing a property unless they're the owner, but this one doesn't do it.
As a Broker Investor I was challenged by my Board of Realtors and their attorney concluded the same thing Jon mentioned.
To find a Cash Buyer I would put it on the MLS. In the agent remarks indicate that the sell is subject to the seller obtaining transferrable title and always have that statement in your agreement to sell.
Michael Quarles - what is your opinion of these subscription software programs on the market (no names mentioned) that claim to pull cash buyers from public records into their databases and will serve them up to you at the push of a button. Too good to be true? Data incomplete/stale? Too many people mailing to these same names?
Certainly, any agent can easily pull a list of cash buyers for MLS transactions. There is typically a "Financing" field in any MLS system that can be easily queried. Once the agent provides the list, you can manually (or automatically) cross-reference to the tax assessor's site to identify the cash buyers.
Interesting perspectives but I would still have questions about how this works.
Michael Q., if you have successfully done it, could you give us more information? How does the closing work - is it done as a double closing? Was the house vacant? Seems it would be awkward to show if occupied. If it was REO, did the lender accept an assignable contract?
As for the push button providers I am not certain why anyone would go that route.
Log into Listsource, pick 99-100 equity, SFR, 2-4 bedrooms, purchased within the last 9 months absentee owned. DONT remove duplicates, Corps or Trust owned.
Don't worry that everyone is marketing to them. Heck that's a great thing.... After all isn't that what the MLS does anyway.
Always a double, hardly ever vacant, Always on the MLS with a for sale sign in the yard with flyer.
The key is honesty with the seller... In my agreement they acknowledge this.
XIV. RESELL: Seller authorizes the Buyer to enter into a sales agreement to resell the property during this escrow period. Seller is aware that Buyer intends on reselling the property for a HUGE PROFIT. All profits made by Buyer during this transaction relating to the reselling of the property are the sole interest of and solely owned by the Buyer.
As for the push button providers I am not certain why anyone would go that route.
Log into Listsource, pick 99-100 equity, SFR, 2-4 bedrooms, purchased within the last 9 months absentee owned. DONT remove duplicates, Corps or Trust owned.
Don't worry that everyone is marketing to them. Heck that's a great thing.... After all isn't that what the MLS does anyway.
Thanks, Michael, makes complete sense. I'm sure ListSource data is more complete anyway, and cheaper.
Wow Michael Quarles, I can't believe you're so bold w/ your sellers. I can't imagine showing sellers language that says HUGE PROFIT...that's awesome that works for you...I have trouble enough just finding sellers, let alone letting them know I'm going to resell a property (if not one I want to hold).
As to the orig question, REIAs are good for networking and getting a good buyers list but you need to do this religiously so you have a large buyer's list before you even get properties...most are tire kickers and many many are just wholesalers reselling your properties. Marlon Wilson I would definitely recommend that you have some of these wholesalers who may resell your prop in your back (bigger, ha) pocket, especially if you're just getting started...they have a large list of buyers that they have accumulated from marketing their own properties. They may make money off your deal but at least you won't get stuck with it and as long as you are happy w/ what you make, shouldn't matter if someone else makes a little off it if they can sell it.
You also need to be VERY careful you have something under contract before you go trying to sell it or you will get yourself in trouble and that's the last thing you want.