Building a Cash Buyer List For Real Estate Investing Is Critical to Your Success.
Here’s Some Things That Every Investor Should Know In Order To Effectively Build Your Cash Buyer List For Any Real Estate Deal.
Cash buyers MATTER! Period. End of story.
Cash buyers can make your real estate investing life so easy that it is just INSANE to not have them be a MAJOR part of your business. Now, obviously our system Find Cash Buyers NOW has solved this problem for thousands of investors, but I want you to know that there are many ways to get to these buyers.
Who Are Cash Buyers:
- Professional Types
- Pharmaceutical Sales Reps
- Small Business Owners – Restaurant, Dry Cleaners, Nail Salon
- People with money but not enough time
- Rental Property Owners/Buyers
- People with money in Self-Directed IRAs that are not investing it (this is most of them)
Where To Look For Cash Buyers.
- Find Cash Buyers Now System – completely done for you (this is the way)
- Classified ads in Newspaper
- Bandit Sign Ads “Cash Buyer Only 3/2 Property Cal Today”
- Online – craigslist
- MLS – “Cash Only” in comments – sold in last 90 days
- Title companies
- Closing Attorneys
- Public Records
As a real estate investor, building a cash buyers list is crucial to your success. If you’re not willing to invest the time here – then just stop. Go home. Do something else.
That’s how much these buyers matter.
Remember, even if you don’t have a property available you are still able to build a database of qualified buyers. So no more excuses. Cash buyers are an investors dream because of how easy it is to work with him. If you simply dedicate 30-90 days of marketing to build your list, you should end up with a very comfortable portfolio of investors.
Although I have written about it before, I thought that I would touch on the subject of building a Buyers List again.
The biggest fear that people who are venturing into the Wholesaling business have is whether or not they are going to be able to sell the homes that they put under contract. This is a perfectly natural fear and one that each of us has had when we start out. The key is to embrace that fear and let it empower you to create a powerful network of buyers.
The first thing a Wholesaler should consider when building a Buyers List is how he or she is going to get a wide array of buyers. By this I mean, you want to have:
· Low-end property landlords
· High-end property landlords
· Multi unit buyers
· New investors
· Seasoned cash buyers
· Passive investor looking for no-hassles
You should have someone lined up for every scenario of property. It does not do you any good to have a list of seasoned cash buyers who all like high end properties if the only thing you are able to locate is low-end rentals. What are you going to do with all of the other opportunities that you find?
How do you put your list together? Here are a few ideas that have worked for me…..
Start out by running ads in the local classifieds. I would run ads in your local paper, but also the “Penny Saver” types of papers as well. Start out by running ads such as the following:
Fixer Uppers- Deep Discounts- Financing Available 561-224-2414
This is an inexpensive way to get the phones ringing. Then talk to the investors who called about their experiences, where they like to invest, how they pay for their homes, what their exit plans are, and so on. You really want to get to know these people and create a level of comfort for yourself that they are indeed buyers for the right property. You don’t really want to talk too much about property yet. When your discussion is finished, tell them that you do not have anything available for them at the moment, but you will call them when you find something that suits their needs.
When you have the means, brand yourself and use mass media marketing like television, radio, and billboards. This serves two purposes (1) it generates calls from motivated sellers that need to sell their house now and (2) it makes you the “go to” person in the market. Because you are the “go to” person – other investors will flock to you. You will get calls on a regular basis from other investors asking you for anything that you don’t buy.
YOUR LOCAL REI CLUB
Another successful method is to visit your local REI club. These clubs are great places to network with other like-minded investors from all over the area. Believe it or not, most of these investors are not willing to do the little things that it takes to get the great deals. They would much rather sit back and purchase investment homes from other investors. They are perfectly willing to buy a property for a little but higher price to avoid the hassle of digging for it. These investors come to these meetings once a month to review available properties from other wholesalers. Add them to your list.
LINE UP FINANCING
By locating hard-money and conventional “investor friendly” lenders in your area, you can turn new investors and contractors into your best buyers. Bring the deals that need a lot of work to a contractor, get them the loan to do the deal, and they will keep coming back. Show new investors how to get their first deal done, line them up with the property and the money, and most likely you will have earned a customer for life.
BANDIT SIGNS AND FOR SALE ADS
Another method that I have used to find buyers is to call “for sale” ads; particularly ads that say “newly renovated”. In most cases this will be an investor who has just purchased a home and fixed it up. I call the ad and ask the seller if he or she is an investor. If so, I begin the same rapport as if he or she called on one of my ads. The fact that he or she has a home that is newly renovated, lets you know that you have a real buyer to ad to your list for the area that he or she is selling in.
When driving around looking at property take note of the bandit signs hanging in the area. “I BUY HOUSES FOR CASH” and “WE WANT YOUR HOUSE” are all signs from investors in the area. A simple call to these people can really pay off. Ask them if they are interested if you are able to get a property in the area. If they have a network setup, they would be fools to say no.
Buyers market, Sellers market, up or down, it really doesn’t matter. There are always buyers in the market looking for deals. You have to run your real estate investing business like a business. Stay focused and you will have a healthy Cash Buyers List in no time.
This post was updated on April 6th, 2018.