Cash is Key For Real Estate Investment
Why Cash Buyers are Essential to Your Real Estate Investment Business
Now is a better time than ever to be in real estate investing because cash buyers are flooding the market and lending to bigger opportunities for reverse wholesaling.
If you are new to the business of real estate investment, you may have some reservations, but let me tell you, it’s happening and it’s happening all over the place. In fact, 38% of all real estate deals are going down with cash. When you learn how to get dialed in and deal with cash buyers, you can make a lot of money fast, regardless of your level of experience.
Why do cash buyers matter so much?
There is a reason cash buyers matter to you, as a real estate investor, and the reason is that, generally, people pay cash for real estate investment properties but not for their primary residences. Typically, when people are purchasing their residence, they will go with traditional financing; heck, even those with bad credit are able to get financed, if buying their primary residence. Those are not the people you want to deal with; you want to deal with other real estate investment professionals.
Cash buyers, the very ones you’re after (if you’re smart) are often times real estate investors themselves.
Why is dealing with other investors a good thing?
The reason is, not only are they paying cash, but they are usually buying in bulk; in other words, these are the people who are making multiple investments. For you, that means a steady customer; that means a client that you can reach out to, and sell, again and again.
This means building relationships.
You see, creating clients and building relationships is the difference between “old school wholesaling” and reverse wholesaling. Here’s what I mean:
Old school wholesaling meant that you went out, found a great property, offered a very low price for it, hopefully got acceptance, put it under contract and then went out and tried find someone to buy it.
New Reverse Wholesaling, however, means you already have your buyers, or your clients, in place and you go out and find what they want and need. They’ve got cash, because generally they are active cash buyers and the deal goes much more smoothly and quickly.
The great news is, cash buyers are investors and they always want more. Becoming a real estate investor who works with active cash buyers, and does reverse wholesaling, is the smartest way to work this business in today’s market and you, too, can be active in reverse wholesaling.