How to approach a Cash Buyer?

Question

Hey everyone. I'm based in Los Angeles and I'm new to wholesaling. I'm finding it hard to build relationships with buyers. I've been sending them deals and getting no response. Is it because of COVID-19? I thought at first it was because my numbers weren't right, but I have a mentor who has been Investing in Real Estate for a while and he told me my numbers we fine. I feel a little discouraged because I know I'm doing things right when it comes to finding deals but the disposition part of my business needs work.

So far I've only tried pulling buyers lists from propstream and listsource. Then I do a text campaign to the buyers. I've also recently tried and email campaign. Neither of those approaches are producing enough responses and out of the ones who do respond there are almost no follow ups. Have any of you been in this situation before? Any tips?

Travis Steinemann · Answer

My strategy is a little more time intensive. Pull records from the tax assessors website for 15,000 or more properties in your farm area. Make a pivot table using owner address as well as owner name as the rows and count of physical address as the sum value. Copy and paste values so you can sort it. Sort biggest to smallest. Then you have a list of the people or companies with the most properties in your area.

I send anyone with 15 or more properties a handwritten note asking them to join my buyers list and include my business card. Easter greeting card envelopes work well right now for getting them to open the letter.

It's more work but it makes you stand out and gets the conversation started.

Brian Van Pelt · Answer

Account Closed

With any sales job you will find there are more "tire kickers" than actual "buyers".

First you have to approach this properly.. Know your numbers. If your numbers are not correct a savy buyer will always pass. Pitch properties that only fit you buyers criteria.. Approach the process as if you would buy the property. If your buyers pass, the YOU buy the property.. If any of my investor clients pass on 3 properties that fit their numbers, then I fire them as a clients . I only want to work with buyers NOT tire kickers.

Kyle J. · Answer

Account Closed If I’m reading your post correctly, you’re simply texting and emailing these “deals” to people you got off a list?  If so, that’s not an effective way to build a relationship.

Ideally you need to meet people in person (hard to do right now with everything going on, I know), or at least talk to them. Find out what these “buyers” are looking for (i.e. their buying criteria), and if they’re even legit buyers, before you just blindly pitch “deals” at them. Otherwise you’re probably just spinning your wheels.

Michael Ohara · Answer

@Oluwasegun Oluwadele

Look on Zillow for recently sold homes that look like flips (gray walls, stainless steel, laminate floors,etc). Go to county records and find who the seller (flipper) was. You will know they are investors if the seller was an LLC and/or the time between acquisition and disposition was short. Contact the Company (a bit hard to find info), and reach out with your deal. At least you know they do deals and aren’t tire kickers.

Travis Steinemann · Answer

Account Closed no problem my friend! Hopefully it works for you as well as it has for me.

Account Closed · Answer

@Travis Steinemann wow this is EXCELLENT advice. Thank you!

Account Closed · Answer

@Kyle J. Yeah it really does feel like I’m just spinning my wheels. I see your point but I know there are a ton of people out the doing virtual wholesale deals who never meet buyers. Maybe getting them on the phone is the best idea. (And truly rn my only option)

Account Closed · Answer

@Brian Van Pelt this is wonderful advice. Thank you!

David S. · Answer

@Oluwasegun Oluwadele

The best wholesalers build personal relationships with their buyers and know what each buyer wants. Maybe those guys don't buy in the areas you sent them? Maybe they don't buy at that pricepoint. The best wholesalers I know will sell their contract on the 2nd or 3rd phone call because they know who buys in what area. Leftover properties are sent out to the masses via email. If you have a real deal a real investor will jump on it. You just have to have relationships with real investors.  And honestly, about 5 to 10 percent of the wholesalers that I know have deals where the numbers work and in the areas and types of property I invest in. I am fairly certain that this percentage is common. Send me some of your deals and I will give my objective opinion as a professional 20 year real estate investor. I don't agree with erasing the investor's number or email after the 3rd contact. A couple of years ago, I had way more houses to flip than I my crew could renovate so I had to wholesale one when I don't actually wholesale.  I flip and convert to rentals. While I had that excess inventory and many more in the pipeline, I was unable to buy some great deals that came my way. I would have been scrubbed from that list due to passing on 3 deals. Further, I often pass on more than 3 consecutive deals from wholesalers who place me as their top 3 buyer or higher. Many of those deals don't meet my criteria so why should I invest in them? Some get bid up so I pass. I wouldn't be in business for 20 years if I overpaid for properties in a bidding contest against idiots.

Adam Mitchell · Answer

@Oluwasegun Oluwadele meet your potential buyers for coffee and learn exactly what they are looking for. Obviously once you find them a deal that fits your criteria, they will communicate more. If you cant get anyone to meet its either your approach (focus on them) or the wrong buyers.

You can pull lists of cash buyers so find the right ones.

How to approach a Cash Buyer?

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