How to Build a Qualified Cash Buyers List

A buyers list is one of the key tools with real estate investing. Part of a solid buyers list is understanding how to segment the list to work for the specific needs of each deal. The basic principles apply for creating a cash buyer’s list as for any other buyers list segmentation.

Your buyers list adds value to your real estate investing business. A buyers list is vital if you want to close deals quickly and reliably. Before you can build a quality list, you must understand the purpose of a cash buyers list and how to use it to close deals.

What is a Cash Buyer Real Estate Investment?

Not every real estate investment deal requires a cash buyer. However, cash buyers help deals to close more quickly and with less hassle. If you have a cash buyer, you don’t need to worry about securing financing. Also, cash deals usually have a shorter closing period because you don’t have to deal with the lender requirements and timeframe.

Simply put, a cash buyer real estate investment deal is when the buyer uses cash instead of financing to pay for a property. This can include any type of property, like rental properties, fix and flips, multifamily properties and more.

You Need a Qualified Cash Buyers List

For a buyers list to be effective, you need to qualify the buyers. This means a qualified buyers list is a list that meets a set of specific requirements. Otherwise, you have a contact list, which can be effective for marketing your business but not for closing deals.

In this case, a qualified cash buyers list contains contacts that meet your need to quickly locate cash buyers for real estate deals. Your list may contain both buyers and sellers interested in cash transactions.

The idea of qualifying buyers takes the list to a more detailed level. By qualifying your list, you save time finding investors that fit best for specific deals. A qualified list means those contacts have expressed interest in buying properties with cash and actually have access to funds for the deal.

More experienced and successful real estate investors develop extensive and specific buyers lists over time. A qualified cash buyers list equips you to narrow down your focus for each deal to get the quickest and best results.

How to Create and Expand Your Buyers List

Your buyers list aids in the success of your real estate investing business. Begin working on your buyers list from the start. What should you include in your list?

• First and Last Name
• Email Address
• Phone Number
• Mailing Address
• Buying Criteria
• Funding Source
• Source of Referral
• Past Deals with You

For your cash buyers list, include cash as the primary funding source. Cash buyers may also opt to use financing for some deals, so specify you are seeking cash buyers when you reach out about a specific deal.

Building an effective buyers list takes time. If you are persistent, your list will grow. To start building a list, actively seek qualified buyers. Start with the people you already know. Reach out to your existing network of associates, friends and even family. Talk to them about your business and ask about their interest in real estate investments.

Advertising and social media also work to build a buyers list. Many different approaches work to build a buyers list, like mailing postcards to a purchased list and listing ads on Craigslist or Facebook.

Networking is another way to build a list of qualified buyers, including cash buyers. Join a network group, either virtually or locally. Follow other investors and investment sites on social media. Reach out to people that fit your needs for buyers.

A Solid List Produces Results

For each new contact, screen the buyer to ensure they are a good fit for your specific list. For example, confirm the buyer can invest in cash deals before you add then to the cash buyers list. Having a large list of cash buyers that don’t have cash to pay for a deal isn’t helpful.

Stay in touch with the contacts on your list to ensure their information is current and relevant. Don’t just use your buyers list for your benefit. Act as a resource for your contacts.

How to Categorize Your Buyers List

Categorize your buyers list by identifying the types of deals your buyers want to invest in. This is their buying criteria. This may have several defined categories and subcategories, and you can list buyers under multiple categories.

For example, a cash buyer is a category. However, within your cash buyers list, identify the specific types of deals or properties the contact prefers.

Buying Criteria Examples:

• Single-family homes
• Multifamily housing
• Commercial properties
• Fix and flip
• Long-term rentals
• Vacation rentals

Then, when you have a certain kind of deal on the table, you have a starting point with buyers. As you learn more about each contact, continue to refine your list. Categorization adds efficiency and maximizes your business process.

Start Building Your Cash Buyers List

Don’t wait to start building your buyers list. As you deepen your knowledge of the real estate investing business, add more depth to your buyers list. One of the most beneficial lists for your business is the cash buyers list. This provides access to individuals with the means to close a deal quickly.