Cash buyers for wholesale deals are like oxygen for human beings. Basically, it’s what keeps wholesalers thriving.
You think that’s an exaggeration? A bit maybe, but it is important.
Not many in the business can contest this truth, as cash buyers are the ones who get the property moving like I said. It’s just so true because transactions in such deals are far smoother, and there are no sleepless nights spent thinking how the deal would go, whether loan at the bank will go as planned and so on.
Getting cash buyers can be an uphill task for many real estate wholesalers out there.
But how do these successful real estate investors, agents, and property owners go about looking for cash buyers for wholesale deals? Do they first build a list or do they build as they go?
A pre-organized list will always be a boon but it doesn’t mean that without a list you are out of the race.
But before you set out on the expedition to find cash buyers, let’s first understand why a cash buyer is important for wholesale deals?
Cash buyers for wholesale deals: Why are they vital?
Cash buyers, as is evident from the term, refer to purchasers who pay all cash when buying a property. Cash buying is a big lure for wholesalers and real estate brokers as deals in such transactions are faster and mostly free of any challenges or surprises that may come along in loan or mortgage deals.
Read on, we’ve got more!
So, now that you’ve understood what the term means and how significant a role they play in closing wholesale deals, let’s look at the 6 quick strategies that can help you find cash buyers for wholesale deals.
1. Networking with real estate associations:
Your local real estate association could be a treasure trove of rehabbers, property investors, and agents. Try connecting with them first by attending the meetings. Don’t just smile and collect business cards. Listen more and try and identify players that fit your bill and be more visible.
2. Social networking portals:
You really can’t beat the power of social media. Find common interest groups on these sites and meet up with them. You’ll definitely end up meeting at least a couple of people matching your area of interest.
3. Closing Attorney or Title Agent:
Just think about it. All property deals have to be closed in the presence of an attorney. So who better than them to know about good cash buyers. So, next time you are at the attorney’s office for a deal, just ask them about the cash buyers they know of. They would be more than happy to share their list as this is a win-win situation for them. I don’t think you should mind paying something in lieu of such a list.
4. Property management companies:
There is no way these firms would not have a list of cash buyers on their list. Just like closing attorneys they too would be more than happy to keep you and these buyers happy as it would keep their business ticking. Just ask them for a list of buyers looking to pump in cash to buy more assets.
5. Attend Auctions:
Local property auctions are a great way to touch base with cash buyers. Whether at foreclosure auctions or tax deed sales active bidders are your target. Use your people skills, interact with them and make friends.
Most investors who bid at auctions are people who like taking quick decisions. A brush with them could get you deals that you never even can imagine. Once you start laying out your cards, they will definitely be lured to you. In some cases, it is companies that bid at auctions. Try finding out their numbers and then you know what to do?
6. Connect with Rental Companies:
This is a great way to find cash buyers for wholesale deals. Look out for companies with a lot of rentals in your area, get in touch with them. They would be open to you sending them deals as most of these companies are looking to expand their portfolio. Drive around looking for advertising rentals, find out who owns them, and set the ball rolling.
Buyers with deep pockets are a desirable lot, but they are a bit difficult to find if you are really new to the game. The many benefits of cash buyers for wholesale deals are too many to ignore and that is exactly why they are in great demand.
Even if you don’t have a ginormous list at the beginning, a constant exploration of these tactics could get you a constant flow of cash buyers for wholesale deals and help you maximize your profits. Keep looking around and network. That’s the way up when Wholesaling.