So many people in real estate investing face the problem of finding consistent cash buyers.
Being in the wholesaling business for 10 years now, I know firsthand the struggle of making sure you have a steady flow of both deals and investors buyers. If you don’t balance this act delicately, you’ll soon find your business stagnant and your capital tied up, which is never fun.
Recently, we’ve been focusing on streamlining all aspects of our business, and the things we’ve done to get consistent buyers has been pretty awesome.
So, I want to share our knowledge today, highlighting the top 5 things we’ve implemented that have been most effective.
Ready? Let’s do it!
How to Analyze a Real Estate Deal
Deal analysis is one of the best ways to learn real estate investing and it comes down to fundamental comfort in estimating expenses, rents, and cash flow. This guide will give you the knowledge you need to begin analyzing properties with confidence.
The Top 5 Creative Ways to Attract Cash Buyers for Your Properties
1. Post all of your inventory on Craigslist at least every other day.
One of the tasks of our Sales and Marketing Manger is to post all of our inventory on Craigslist at least every other day (a lot of the times she does it daily). She completely removes the old ad and then uploads a brand new one for each property. This makes it so that the majority of the postings at the top of the search results are our properties. I would say that in the last four months, Craigslist buyers have been the majority we’ve sold to, and a lot of them have been one-time buyers.
Surprisingly, a lot of the buyers have been homeowners and not investors, but as a wholesaler, it hasn’t bothered me!
Whether I’m selling to a homeowner who wants to turn a fixer-upper into his dream home or I’m selling to an investor, just being able to sell is what I’m concerned about!
Expect Craigslist to feel like finding a needle in the haystack — a lot of the calls will be a waste of time! But if you can put your attention there, posting all of your inventory on Craigslist can have the greatest returns for finding consistent cash buyers.
2. Get involved (and be consistent) in local investor meet ups.
I want to share a story that just happened this last weekend. I have had my team of six split into pairs of twos, and each pair dedicates themselves to attending at least one networking event per month. So that means we have three events that my company has a presence in each month.
Last Thursday, my Growth and Branding Manager just wasn’t feeling up to attending the event he had committed to going to. In his defense, it was obvious that he wasn’t feeling well, but I encouraged him to go anyway if he could. He expressed that in his experience, meet ups and investor networking events have always been a waste of time, but if I really wanted him to go, he’d go.
So, naturally, he went. He was only there for about 45 minutes tops, and do you know what happened? The first person he talked to ended up buying one of our properties this Saturday (over our asking price, at that!).
So, based on this experience and others I’ve had like it, if you invest in the right events, you can get a great return!
The key, though, is getting to the right events. For us, the local Indianapolis CIREIA has yielded the most bang for our buck so far.
Do some research and be strategic, but if you consistently attend networking events in your area, it will be a great source for buyers.
3. Have technology that makes it as easy as possible for your buyers.
The next thing we’ve implemented is having great technology that has made both viewing our inventory and being updated by our company as easy as possible.
If someone is on our buyers list, they have the option of being updated on all new properties by email and text message.
We use a company called MoboMix to handle mass updates via text message, and this has really distinguished us as a company. No other wholesalers in our area (that I know of) are able to send text message updates to their buyers about properties — I mean, how much easier can it get?
Also, when we attend networking events that give us a booth, we take an iPad stand with us so we can display all of our current inventory (which we always have listed on our website) right there for them to see. This also makes it super simple for them to be added to our website’s buyers list and just adds a whole new level of professionalism.
No one else does this, and it’s a really simple and effective way to get new buyers!
So, make sure you utilize technology to serve your buyers well, and the rest will be history, my friends!
4. Place FSBO signs at all of your properties.
Another thing we’ve done that has worked extremely well is having for sale by owner signs in front of all of our inventory.
Another part of my Sales and Marketing Manager’s job is to make sure all of our properties have signs in front of them that give our financing criteria (this includes the purchase price but sometimes we offer owner financing options) and our phone number.
You’d be surprised, but again, selling to homeowners in addition to investors has turned out to be a great source of buyers, and we get a lot of attention from local people who see these signs, so try it out!
5. Strategically place some of your properties on the MLS.
The final thing we’ve done is listing the properties that are more difficult to sell on the MLS.
Sometimes retail buyers are looking for deals as well, and a lot of the times, I’ve been surprised to get paid more from selling through an agent then from selling it off market.
You need to be strategic in which properties you place on there, but with the right properties it can be a great source of buyers.
I’ve made some of my biggest spreads through selling on the MLS.
So, I hope this post has helped you catch some vision on how you can be more creative in finding cash buyers because they’ve sure been working for us!
How do YOU get creative in finding buyers (or deals)?
Be sure to leave a comment below!