Wholesale marketing question

6 Replies

Hello all,

This may be a dumb question but I wanted to check with some people who may have more experience-

When sending direct mail letters am I allowed to advertise myself as a cash buyer? Even though I will be using hard money to purchase the property or assigning the contract to a cash buyer?

I know wholesalers get a bad rep sometimes so I am trying to do it by the book! Thanks in advance.

Yes, you still say that you are a cash buyer, since the ultimate buyer (whoever you assign to) will be a cash buyer. If you end up doing it yourself with hard money, tell them that you tied up a few deals at once, and would love to use a loan on this one if they are okay with it, but they will still get cash at the closing, of course.

@Davis Stoner

So the responder above advice is to lie. Better rethink, or you’ll end up like 99.9% of wholesalers, wasting your time, the sellers time and the buyers time. Never were so many so attracted to a job that has so little chance for success and is extraordinarily crowded with so many chasing something they probably have no ability, knowledge or experience to identify even if they should stumble across it. But I know, you’re going to “try it anyway”. On the off chance that the guy, with all the free YouTube videos, trying to 3 step sale you and every other wanna be into maxing your credit cards for a $30,000 mentorship is actually something more than a professional “pitch man”, that he was actually successful doing what he’s selling (ignore his personal bankruptcy; that was back when he was “like you are now”, I.e. before he perfected his system), and that he’s not totally blinded by greed, he just wants to “give back” to the real estate community he so loves and cherishes.

@Don Konipol

Thanks for taking the time to respond. I don’t think you answered the question directly, but I appreciate the advice.

Question for you- If you were young, didn’t have a lot of capital how would you go about buying your next property? I am low on cash because I just purchased first multi family, but I don’t want to wait around another year until I have enough for the next 20% down payment.

My plan is to find properties for a good price and use the BRRR strategy with hard money. If I have enough deals coming my way I would off load them to other investors. Let me know your thoughts on that plan.

A cash buyer is a buyer paying cash, their own money, for the property. If you are using hard money, you aren't a cash buyer because you can't confirm that your HML will lend on every property. Also, if you are a wholesaler, you most certainly are not a cash buyer if you have no intent to close the deal yourself. You are lying, which is why 99% of wholesalers ruin the business for others. You are basically asking for people to tell you that it's ok to lie. HM is not cash. If you are assigning the contract, you aren't buying it and can't close it most likely, so you are not a cash buyer. All you are doing is putting yourself out there in your first meeting as someone who lied to get in the door. It's a slippery slope after that.

Originally posted by @Davis Stoner :

@Don Konipol

Thanks for taking the time to respond. I don’t think you answered the question directly, but I appreciate the advice.

Question for you- If you were young, didn’t have a lot of capital how would you go about buying your next property? I am low on cash because I just purchased first multi family, but I don’t want to wait around another year until I have enough for the next 20% down payment.

My plan is to find properties for a good price and use the BRRR strategy with hard money. If I have enough deals coming my way I would off load them to other investors. Let me know your thoughts on that plan.

 Don, allow me to answer this one.

The way we wholesale (when Ii was actively doing it)... we tell them that we have no intention to buy the house and that we will wholesale it to a cash buyer and the way we make money is we collect a fee from the cash buyer. We explain the advantages, disadvantages, how it works and what they can expect.

We give them an option. We ether buy it ourselves with our own cash or we can wholesale it. Every time we present this option, 90% of the time they want us to wholesale it instead of us buying it with our own cash. How? Well it is a long explanation. If you want to know how exactly just ask and I will write it all down for you.