A common question I often see asked in the forums is where do I find potential partners for joint ventures or active cash buyers?
The process is not too difficult, but it can be intimidating if you are just beginning. However, even if you are experienced, or don’t wholesale or JV too much, there are some great actionable tips in this post to help you build your database and start building relationships in real estate today.
The 5 Tips To Find JV Partners and Cash Buyers
The following are the 5 things I’ve learned to do in order to be successful in finding partners and potential cash buyers. I hope you find them as useful as I have. Let’s begin:
1. Court House Steps
Here in the Dallas-Fort worth area we have what we call “Texas Tuesday” the first Tuesday of the month, all across Texas and its various courthouses there are multiple auctions.
The most common auction is the trustees sale at the court house steps. Additionally we have a sheriffs sale, which contains tax delinquent properties. Especially with inventory so low in most market areas right now, these people are buyers you want to talk to.
They literally show up to the court house steps with cashier’s checks ready to go, and most of the time they leave empty. If you can show up with a deal and need some JV funding, or need a buyer for your contract, you will likely be able to find a partner here.
Competition at the court house steps has become increasingly difficult as inventory has diminished, not only that but hedge funds are also starting to bid on these properties as well.
These are perfect targets, if you are looking for a cash partner for your next joint venture, or looking to build your database as a wholesaler do not underestimate the importance of attending these auctions.
Not only that but regularly attending will help you see what properties are selling for in the area, what prices investors are buying at and help identify local movers and shakers in your market area.
2. Local County Appraisal District
To do this you can either physically visit your local County Appraisal District (CAD), or visit their website. Most counties have a database of sales, and you can filter the list by cash only sales.
This is a great way to identify active investors in your area. Not only that, but you can see exactly WHERE they are buying (down to the zip code and street address of the property) and what they are PAYING for it.
This is essential if you are new. If you want to present a good deal, you better be able to give your end clients a contract that is around the price they are already paying or better.
3. Title Company
As you begin closing more properties and form relationships with various escrow officers they can often do some of the foot work for you.
Have them do a title search and they can often identify cash buyers to add to your database. Not only that, but many times the escrow officers have frequently work with a handful of investors specifically, and they can refer your contact information to them.
4. MLS Cash Sales
Where better to find cash sales that on the MLS.
If you are not a licensed realtor, I suggest you reconsider as there are many benefits to becoming one. On the MLS you can filter sales by cash only, typically these will be active investors the majority of the time (although sometimes it will be a family), you can check this by verifying in the local appraisal district that the individual owns more than one property.
The best part is the MLS will show you exactly where these individuals are buying, and you can even use this information to generate a heat map of the area.
5. REI Meetups
Lets face it, at REI meetups there are alot people that will just waste your time.
However, if you take networking seriously at REI meetups you will find some active investors to potentially partner up with on a joint venture, or to assign your contracts to. Once you do identify them find out what their buying criteria is.
Final Thoughts: Do I Need to Find Cash Buyers First?
If you intend to wholesale real estate, this is sort of a chicken and egg question.
To be honest I feel its best do both at the same time. In other words, instead begin your marketing campaign while building relationships with cash buyers. The bottom line is if you have a good enough of a deal, as my previous case study shows, you will find a buyer as long as you market it correctly and its at the right price.
What other tips would you add tot he list?
Be sure to leave your comments below!