There is more than one way that cash buyers can make great real estate leads.
Know where and how to find and connect with cash buyers, and learn how to fully leverage them, and you can open up a variety of new and very profitable income opportunities.
You may already have an idea for how you can use cash buyer leads to generate more cash and profit in real estate. Yet, be aware to the many alternatives and be sure to capitalize on every lead to the fullest.
- End Buyers for Your Real Estate Deals
The most common reason that real estate investors and agents seek out cash buyers is to sell them their deals. Whether you are a wholesaler, house flipper, or a Realtor with listings, cash buyers can provide fast and easy sales, and a quickly moving pipeline. Cash buyers are especially valuable when you need a fast closing, or are trying to sell properties that have repair issues, or non-conforming improvements.
- Private Lenders
Cash buyers can also make great private lenders. The fact that they have been buying other properties for cash suggests that they have the liquidity on hand, in equity, or via lines of credit to fund more deals. They may already be actively lending, or can be introduced to the idea. As private lenders, they can be leveraged to fund your own real estate deals, enabling you to act like a cash buyer. Or they can be used to fund deals for your clients. Some may even make good note investors, who can buy loan notes you create, or cash out sellers who give you owner financing.
Cash rich individuals can make excellent partners too. They may be approached to help fund a real estate related startup business, with potential for sharing in the profits. They can make for good partnerships to go out and acquire new real estate deals, to fund the rehab on deals you are already buying, or to provide an exit that replenishes your own cash, while retaining properties for cash flow.
- Sources for Real Estate Deals
Cash buyers are often equity rich real estate owners. However, they can frequently run into trouble and need to sell their properties, or have the luxury of offer owner financing. If they want to convert the real estate to a cash flowing note asset, run out of repair money, or need to shift their focus away from hands on property management these owners can make great candidates as motivated sellers.
- Additional Revenue from Monetizing Leads
There can also be revenue to be generated from monetizing and reselling cash buyer leads to others. Even if every lead is not a fit for you right now, it could be for someone else. If you are good at curating and adding value to these leads (i.e. pre-qualifying them), then you may be able to cash in on them by selling to lenders, Realtors, and other marketers and investors. You may join affiliate programs and upsell to additional services. You can trade them for fresh new leads from title companies or other partners. Or perhaps you have renters in properties you need to vacate, and can refer them to these cash buyers who own rentals.
Finding Cash Buyer Leads
There are a variety of ways to find cash buyer leads. You can try to create your own online lead generation funnels, scrape data from the web, search public records for recent transactions, obtain lists from title companies, work with Realtors, or tap into databases like the SMART System Suite.