How To Reach Buyers who pay with CASH

Question

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

Jon Holdman · Answer

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.

Dev Horn · Answer

"Huge" is a relative measure.  I'm guessing Michael does not REALLY use that language in his agreement.  ;-)

J Scott · Answer

I say go where the investors are...

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...

J Scott · Answer

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...

Michael Quarles · Answer

Lisa

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.

Michael Quarles · Answer

David...

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.

Michael Quarles · Answer

Jon is 100% correct.

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.

Account Closed · Answer

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.

David Beard · Answer

Thanks, Michael, makes complete sense.  I'm sure ListSource data is more complete anyway, and cheaper.

Lisa DuFaux · Answer

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?

How To Reach Buyers who pay with CASH

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