All Forum Posts by: Chris Piper

@Andrew Jenkins Jr. That's great for you, but in my experience, I've NEVER heard of a cash buyer putting out bandit signs.

@Account Closed Man $10? That's a steal. Buy it for $10 and flip it for $20? Lol.

Every wholesaler uses different methods to build their cash buyer's list. If you are a new wholesaler, or just can't seem to find cash buyers, there are several ways to build your list quickly. Typically, when you are just starting out, most people don't have any money to spend, or very little at least. Even if you have a lot of money to get started, you don't want to spend it in the beginning because you don't know what you're doing yet and what type of marketing will get you the best results.

Every time I see someone ask what the fastest way to build a cash buyers list is, the answer people give them is the same 100% of the time. Get a list and send them a yellow post card. First of all, you have to buy a list. Then you have to mail eveyone on that list a postcard. And mailing to each person on the list one time will not accomplish anything. Typically you have to mail to each person 4 or 5 times before you will get a response. So, if you spent say $200 on a list for example, then you mail to 2,000 possible cash buyers at $.50 per post card, then you've spent $1,200 right away, plus you need to spend another $4,000 if you mail to each of them 4 more times. It is worth it when you can afford to do that, but in the beginning, it's not a realistic way to find cash buyers. I  will cover some free ways to build your list, as well as some paid ways. 

FREE

1. Craigslist(Search)

Look through the "Real Estate Services" section for cash buyers.

    Craigslist(Post)

Post a ghost ad to get cash buyers to call you. When they do, get their name, email, and cell number. Tell them to email you their buying requirements. A ghost ad is basically a "fake" ad. Go to Zillow, pull up a property from anywhere in the U.S., save the pics of the property, and then create a post on Craigslist in the "Real Estate for Sale" by owner. Make the price very cheap for your area. In the title of your ad, put something like "MUST SELL!!!" or something like that. It works every time. When someone calls, you tell them the property has been sold, but you get several properties a month. Then get their contact info, and find out their buying requirements.

2. Go to your local REIA meeting. Most cities have them, and if not, find the closest one to you. Talk to people there and let them know what you do.

3. Tax Sales/Auctions

See who is bidding on these properties, and try to talk to them after the auction is over. These guys have DEEP pockets, and are always looking for deals.

PAID

1. Bandit SIgns

This is my #1 favorite way to find cash buyers. You get as many signs as you can afford to buy(White or Yellow plastic corrugated signs 18"X24" and H-Stakes). Put them up at busy intersections around town, or in the zip codes you are focusing on buying/selling in. NOTE: Most cities do NOT allow bandit signs, so put them up Friday after 5pm, and take them down Sunday night. That is when the city offices are closed. Hand write all your signs with a huge sharpie marker. Basically you write the same thing you might use for your Craigslist ad. EXAMPLE: 3 bed 1 bath 1,200sf MUST SELL!!! $19,000 CASH ONLY Call 555-1212. Only get your signs online, or they will cost you a fortune in town. Check Dirt Cheap Signs online. I think they run about $1.35/ea. If you buy them at Home Depot, you'll pay $5/ea not including the H-Stake.

2. List sites/Yellow Post Cards

You can buy lists from List Source and other list sites. They can be expensive depending on how many people are on the list. Once you buy a list, you find a service online that will stamp and mail your post cards for you so you never have to do anything but pay for them. Mailing can be quite expensive, but if you get enough cash buyers, you won't have to keep mailing once you build that list.

3. Cash Buyer Websites

You can pay to get a list of cash buyers, similar to using list source. The only difference is, you get the list for life, it will give you cash buyer's from the entire U.S.(every city/state), and the list gets updated on a regular basis. It also tells you how many properties they have bought within whatever time frame you search by. This can be quite expensive. I purchased the cash buyers list from Find Cash Buyers Now a few years ago, and I think it was around $2,500. If you have the money to do that, that's great. But keep in mind, they give you the cash buyer's info, but not a phone number, so you still have to mail to them, just like as if you bought a list from List Source. EXAMPLE: I just logged into my findcashbuyersnow account, and pulled up cash buyers in New York, NY. There were 2,469 cash buyers who bought at least one property cash in the last 3 months. Screenshot below. That's a lot of buyers.

Well those are the top ways free and paid to build your cash buyer's list as a fast as possible. Remember, the most important thing to remember is to buy at the right price, and have accurate figures. If you say a property needs $10,000 in rehab, and turns out it needs $30,000, your reputation will look very bad, and no one will want to work with you. Good luck everyone!

@Ryder Meehan Here is the process:

1. Seller signs the purchase agreement which needs to state that the contract can be assigned.

2. Buyer signs assignment agreement that shows your fee. Make sure you collect at least a $2,000 Non-Refundable deposit from the buyer. That way if they don't come through, at least you get the deposit and can try to find another buyer. Sometimes cash buyers will get flaky if they think you are charging them too much. If your buyer gets a little wierd about your fee, don't be opposed to lowering your fee some if that's what it takes to get the deal done.

3. Find an "Investor Friendly" title company and let them know how this deal is going down.

4. Close and get paid

5. Repeat the process over and over

@Wayne Freeman REO's are a good way to make money wholesaling, but they do usually require more earnest money(typically $1,000), and you have to know where to find them. Check out Preton Ely's REO Rockstar system. It's pretty cheap, and he knows his stuff. Also, a lot of bigger banks have some REO's listed on their websites, but they hold back a ton of inventory called "Shadow Inventory." Don't know why, but they do.

You need to find "Asset Managers", they are the people that control the REO's at banks. You can find them by searching for "Asset manager" on LinkedIn. Connect to them and you should be able to find plenty of inventory. Keep in mind that there might be a lot of competition with those, but if you get in good with the asset managers, they might hook you up. Good luck.

@Christopher Andujar virtual wholesaling isn't much different than regular wholesaling, only you can't go inspect the property. If you can see pictures of the property, that definitely helps. The easiest way to estimate without seeing a property is just use a set amount to multiply by the square footage. For example, If the owner says the house needs nothing and it's perfect, I would say $10Xsf. If the house needs work(nothing major), I would say $20Xsf. If the house is a dump ad needs a total rehab top to bottom, I would say $30Xsf. You can decide what amount to use to get your repair costs.

As far as programs, you could check out 10 hour wholesaler by Justin Wilmot, or Virtual Wholesaling by Cris Chico. I've never used either system, so I can't say if their good or not. You can probably find some good info on here on how to do virtual wholesaling.

@Anthoney Perkins There are so many good deals out there, I wouldn't waste my time with an idiot agent like that. Let her keep it listed for 6 months and not make a dime, when if she would have been cordial to you on the phone, she might have gotten paid on the deal.

@Burt L. First of all, I wouldn't give your BEST offer initially or you have no room to go up on price if need be. I usually offer 15% below my MAO. If I can go as high as $50,000, my initial offer is $42,500. Sometimes you win, sometimes you lose. There are plenty of good deals out there so I wouldn't get worked up over a deal.

If you get a good deal under contract, and worry that the seller might pull something and back out by going with a higher offer, put a lien on the property IMMEDIATELY after signing the purchase agreement with the seller. This way they have to honor the purchase agreement. If they want out, you can let them, but you charge them a fee for doing so. You charge them 25% of the difference between your price and the new buyer's price. Prety slick, and you make money either way.

@Jose Roberto Funes Jr why are you afraid to get started? There is a ton of great information on this website. Anything you want to know is just one question away. The wholesaling process is super simple:

1. Find motivated sellers(craigslist, bandit signs, driving for dollars)

2. Get comps, run the numbers, and get a deal under contract for the right price.

3. Find cash buyers(craigslist, bandit signs, mailing yellow letters/post cards)

4. Assign the contract to a cash buyer and collect a deposit.

5. Close and get paid.

If you have any questions, add me as a contact and I can help you out. If you really just want someone to work with you on your first deal or two, I might be able to do that as well. Let me know.

Thanks for the info @Account Closed. I'll pass it along. Also, if someone makes an offer on an MLS listed property and they use an agent, does the agent lose out on their commission once they assign the deal over to a cash buyer?

I've had a lot of people ask me if you need an agent to submit your offers for you or if you can submit them yourself. I've never used an agent to submit my offers so I don't know, but would like to know so I can help the people asking me. I also get asked if you do use an agent to submit wholesale deals, what happens when you find a cash buyer? Is the agent out of the picture with no commission? Any help would be appreciated.