When I first started investing in real estate I was brainwashed into looking strictly for motivated leads and once I got a deal I would magically find a cash buyer by holding a bandit sign or posting an ad on craigslist. Well, if you follow my blog, you’ll know what my craigslist adventures have been like lately.
Time to change
Now it’s getting tedious to go through as many so-called cash buy opportunities as motivated sell opportunities, once you land a few deals.
After countless offers and my cash buyers obviously need Viagra to invest, I have come to a conclusion and am not attempting this. I’m doing!
I have decided that I am focusing on getting REAL cash buyers who will pull the trigger when I call them to shoot that deposit. Owners and experienced investors with portfolios.
How can this change the game?
You may have 15 cars to drive, but if you only drive one, you’re wasting space, right? I know people with multiple buyers, but when it’s time to pull the trigger, their shots are blank. Either they don’t respond because it’s not what they want or their tire kickers.
You can get a good quality recurring cash buyer, build a relationship with them, and only get the properties they ask for. This way, when you put a property under contract, you know in the back of your mind that it has already been sold. That’s a good feeling that I have yet to experience 100%.
How to spot a REAL Cash Buyer
One of the easiest ways to spot a REAL cash buyer that I have noticed is to ask if they own any property. just a “So how many properties do you currently own?” It will. 9 times out of 10, a REAL cash buyer will brag about all the properties they own and how much they make per month in positive cash flow.
Some start beating around the bush when the price discussion comes up, but it eventually comes to light. You want to know what their price range is so you don’t waste your time with properties they definitely wouldn’t be interested in.
Just when you think you’ve got one, it’s time to sink your claws in. You need to let them know that you would really like to work closely with them as they seem to be really serious and you can definitely get what they want. You want to make your investment experience as easy as possible.
Get all their information and let them know that you will be contacting them first before anyone else with your offers. Allowing them to be the first to make deals makes them feel important and they will let their guard down with you because you think about it; they are spending thousands of dollars on you. Wouldn’t you like to feel comfortable with someone you spend thousands of dollars with?
This is what you need to know. Not everything is necessary but everything is important:
- What type of construction do you want (Block, frame, stucco)
- Number of bedrooms and bathrooms they prefer and garage preference.
- square feet.
- In which areas do you want properties?
- how much do you want to pay
- How much are you willing to pay for repairs?
- What they want to pay in taxes
- How many houses they plan to buy in a certain amount of time (3 months, 6 months, etc.)
I’ve discussed how favoring a cash buyer over a motivated seller can give your business a boost. I also told him how to be eagle-eyed to spot cash buyers.
Now I’m going to show you exactly how this will give you the edge, how to take advantage of your “edge” and what this could mean for your real estate business.
Who has the upper hand now, huh?
Having a point and shoot cash buyer is great because all you do is eliminate them from having to go to these extremely nice banks. That’s a headache waiting to happen and if you’re getting REOs, you’ve probably built a relationship with an agent, so you’re getting REOs on a platter.
Now this can be quite comforting, but NEVER get comfortable. I suggest trying to multiply this as much as possible. Build an army of happy cash buyers and you’ll have deal after deal, check after check coming your way.
Here’s help if, like most, you’re completely lost in flipping bank-owned houses.
Benefit for new investors
From day one, I was told that through ebooks, audio, and other investors, I needed to get as many leads as possible. It’s a numbers game.
I’m not saying they were wrong, but could this issue’s game need some tweaking?
Everyone knows that being a new investor it can sometimes be quite difficult to get started. Either out of fear or because you don’t have any skins in the game. Well, if you have some REAL cash buyers, you can trade other people’s properties. Yes, I did. You can sell houses without even putting a house under contract.
If you have the buyer then you have a lot of power. Work out with the seller how much you’re going to make on the deal, get that in writing, get a contract and deposit from your buyer, and go to the title office.
You can get on the mailing lists of other wholesalers and sell their properties to their buyers and only spend money on cash buyer bandit sign marketing. Easy right?
In conclusion
All things considered, there are many ways to invest in real estate. Having a real cash buyer or an army of them is the best way to take your real estate business to the next level.
P.S. If you have any comments, questions, or just want to say hi, please leave them below. Thank you.