The Benefits Of Cash Buyers
For many real estate investors, there are few words better than “cash buyers.” Not only can cash simplify a real estate transaction, but it can also lead to faster closing times and fewer complications. The reason for this is because with cash buyers, there is no loan approval process. This can eliminate several weeks from the closing timeline, as buyers are not stuck submitting applications and negotiating the terms of a loan. Instead, investors will find that cash buyers are ready to make an offer and proceed with a deal right away. A shorter closing time can be greatly beneficial to investors, no matter what their preferred exit strategy is.
Find Cash Buyers By Thinking Outside Of The Box
Cash buyers are not confined to a single demographic or industry. Anyone with a little extra money on their hands with the intent of buying real estate may be considered a legitimate lead. Therefore, relegating your own search to a single buyers list is to neglect the unlimited potential that is all around us. Instead of wholesaling your next property to a single buyers list, try looking “outside of the box” to find cash buyers for real estate deals.
If you already know where to find cash buyers, you are ahead of the game. However, if you need a few suggestions with where to start, the following list should get the ball rolling:
A great place to start looking when searching for a cash buyer to purchase your current wholesale deal is to the landlords who already own properties in the area. How do you find these landlords?
Well, there’s any number of ways! One way is by driving the area and contacting the owners of the all the properties you see “For Rent” signs in front of. These investors may not only be looking to buy more rentals in the area, but may be looking to unload some of their inventory as well.
You can also search the specific zip code on “For Rent” sites like Craigslist or Zillow, and contact the owners of the properties the search delivers. Get creative and I’m sure you can come up with a few more ways to contact current landlords in the area!
Craigslist is a great FREE online tool that you can use to stimulate many facets of your investing business, and finding cash buyers is no different. As far as how you use it to find cash buyers, there are multiple actions you can take.
First and foremost, you can look through the “Real Estate for Sale” section in your target city, and reach out to the other wholesalers and cash buyers you find marketing for deals. Second, you can post your own ads with titles along the lines of “Wholesaler Seeking Cash Buyers”, or some variation.
Lastly, you can post a ghost ad (a very attractive deal that doesn’t actually exist) and collect the contact information from the investors who reach out to you. Caution: when using this technique it’s best to be upfront as possible that this is a hypothetical deal.
These are not the only ways to use Craigslist to find cash buyers, but they should be enough to get you started.
REIA CLUB MEETINGS
Last but certainly not least, you can find cash buyers at your local REIA meetings. As a new wholesaler/investor, you should already be attending your local REIA meetings to become more familiar with the big players in your area, and to learn as much about your specific market as possible.
And even if they don’t have a specific introductory period, don’t hesitate to approach the other attending investors and introduce yourself. Remember: cash buyers want to meet quality wholesalers, you make their lives easier! Just be confident, transparent, and don’t forget to get ALL their contact info!
Are these all the ways for you to find quality cash buyers in your area? Certainly not, but they are more than enough to get you started when first getting your wholesaling real estate business of the ground.
Real Estate Auctions
Many real estate investors still flock to a variety of types of property auctions in search of deals. They are armed with cash, and are ready to move quick. The problem many face is being out bid by a few entrenched players which dominate local auctions, or others willing to pay too much. Many leave these auctions with their cash still in hand. What you need to do is to introduce yourself at these auctions. They need deals, you’ve got them. In fact, you can give them better deals in most cases. Be sure to let them know the advantages of working with you.
Bandit sign campaigns are run in almost every neighborhood, and many people don’t realize that they are a great source for finding cash buyers. All of the “we buy houses” or “close in 5 days” signs you see are potential buyers for your next deal. Signs should come complete with either an email or phone number that should be used to generate leads. In much the same way it’s recommended to contact buyers and sellers from the MLS, you should reach out to the numbers found on bandit signs. Remember, you are providing them with a free source of leads. They have nothing to lose by you sending them a potential deal.
Online Lead Capture Form
Another way to find cash buyers is through online lead forms. An online lead capture form is presented on your website and allows potential cash buyers to submit their own contact information if they desire to be added to your buyers list. This will allow you to send them email updates and information. Furthermore, by using these leads, you can increase traffic to your website by utilizing social media or any other form of online advertising.