Real estate wholesalers rely on cash buyers. Without them, wholesale real estate wouldn’t exist. Thankfully, there are many cash buyers who also rely on wholesalers, as they bring deals to investors and simplify their workloads.
As a result, there are a lot of ways to find cash buyers; you just need to understand who they are and where to look for them.
Six ways to find cash buyers
In real estate, cash buyers are investors who buy houses for cash but pay someone else to find the deals for them. The person who finds the deals is known as a real estate wholesaler.
Cash buyers and wholesalers usually depend on each other, so finding them is all about networking and making connections. They’re always looking for wholesalers to help them find deals, after all. Here are 6 ways you can easily find cash buyers and start building a cash buyers list.
1. Networking with real estate associations
Most towns and cities have a real estate association where you can find real estate professionals of all types. Investors come to meetings to learn, network, and find deals, so these associations are the perfect place for a wholesaler to spend time.
When you go to real estate association meetings, introduce yourself and your business to as many people as you can, and be careful to listen to what they have to say. You’ll quickly discover who you want to work with and who is interested in working with you.
We also recommend attending these meetings consistently, if possible. If you become a regular, you’ll network with a lot of investors and learn a lot about real estate at the same time. Additionally, if you become a familiar face to the investors in these groups, you’ll show that you’re serious about real estate, which will make them more interested in working with you.
2. Social media sites
Social media is the most powerful tool on earth for connecting people with similar interests. If you aren’t using it to find investors and cash buyers, you should start immediately.
Social media sites are full of real estate groups where members share education, joint venture opportunities, and general discussions. If you join these groups and participate regularly, you’ll have a nearly endless stream of opportunities to meet cash buyers and other real estate professionals.
You should be careful with this strategy, though. Not everyone on the internet is interested in legitimate business deals and honest work. Be sure to vet your contacts carefully before agreeing to assign contracts or exchange any money with them.
3. Closing attorney or title agent
Every real estate deal requires a real estate lawyer or a title agent, so these are great connections to build. Next time you’re at an attorney’s office for a home sale, ask them if they know of any real estate investors who are looking for help finding deals.
Investors who buy regularly will have a primary attorney that they like to work with. The more real estate attorneys you can connect with, the more cash buyers you’re going to meet. Just be willing to refer investors you know to these attorneys as you expand your network. In real estate investing, it’s always a good idea to help the people who help you.
4. Property management companies
Many real estate investors pay property management firms to take care of their rentals. The relationship saves investors time in exchange for some of the rental money.
Because these firms work with a lot of real estate investors, they’re a great resource when you’re trying to find cash buyers. They also have a built-in motivation to help you, because you can refer your contacts to them, keeping everyone’s businesses growing at the same time.
5. Attend auctions
The regular attendees of property auctions are all cash buyers, because most auctions only accept cash transactions. As a result, they were the number one place to connect with cash buyers before the age of real estate lead generation software. Even now, auctions are a great place to find cash buyers.
When you go to these events, you’ll usually see investors bidding on foreclosed properties. Take the opportunity to learn everything you can, and be mindful of what’s happening around you.
When you get the chance, politely introduce yourself to the investors at the auction and explain your business model. Then ask them if they’re in the market for a property or looking for someone to locate their next deal.
More than likely, you’ll leave these auctions with several new contacts to add to your cash buyers list. Even if you don’t come away with contact information, you can use a skip tracing service to track down investors as long as you know their names.
6. Connect with real estate rental companies
Individual investors aren’t the only ones who will buy your wholesale deals. Most rental companies are always interested in making an acquisition if the numbers are right, and they usually have enough capital to buy properties on a regular basis.
To connect with rental companies, all you have to do is conduct a bit of research on which company owns properties in your local area, then give them a call. It may take a few calls and some explaining before you get to the right people, but these connections can be invaluable. While individual buyers will usually only purchase a few deals from you, you can become a valuable long-term asset to a rental company if you can consistently find quality deals.
What should you say to cash buyers?
Once you have a deal to assign, you’re ready to reach out to your cash buyers list. However, you should plan what you’re going to say before you start making calls. Here are a few things to keep in mind:
- You may need to reintroduce yourself if you don’t know the buyer well or you haven’t spoken in a while
- Keep the conversation efficient, but friendly
- Don’t be afraid to market your deal. Talk up the benefits
- Communicate clearly. The prospective buyer needs to know the closing date, the sale price, and all of your fees
- Propose a price instead of asking the seller what they think the deal is worth.
- Be ready to negotiate. Cash buyers are investors, and they’re going to buy your deal for as little as possible.
If you remember these tips, all you have to do is call the investors on your list, and you’ll sell your deal without a problem.
Building a cash buyers list is essential to wholesale real estate, but it’s not as difficult as you might imagine. Most cash buyers love to work with wholesalers, because they take the lead capture step out of investing.
To find cash buyers, go to the places where they spend time and network with the people they work with. You’ll quickly build a lengthy list of buyers and when it comes time to sell your next deal, you’re nearly guaranteed to have a relationship with someone interested in buying it.