Direct mail and advertising that you can pay CASH

[Gary Mendrin]

Hi BP,

Total newbie question here. When sending direct mail to potential sellers, some of the examples I've seen say something like this: "we pay CASH for your house".

When sending a letter like that, do you need to actually have cash at the ready? Or does that mean that you have access to cash with private lenders? Some letters don't even mention cash. They just tell the seller they're interested in buying.

What are the rules for this?

[David Wright]

Welcome to the "game" Gary.  Regarding your question...there really are no rules, but its very good to be honest always.  I am assuming you are a wholesaler (correct me if I am wrong), if so I would just tell the seller you are interested in buying and not mention the how you will buy.

Its very important as a wholesaler that you always represent yourself buying the property and no one else because it could be implied that you are representing someone else and those are dangerous waters because you are now borderline practicing as a real estate agent/realtor and you need to be licensed to do that.  So be sure to always represent yourself and the one purchasing the property no one else.

Also, remember the key to direct mail is consistency you have to mail numerous times to get the best results, it can not be a one done mentality.

I wish you the best Gary!

[Michael Quarles]

Originally posted by @Gary Mendrin:

Hi BP,

Total newbie question here. When sending direct mail to potential sellers, some of the examples I've seen say something like this: "we pay CASH for your house".

When sending a letter like that, do you need to actually have cash at the ready? Or does that mean that you have access to cash with private lenders? Some letters don't even mention cash. They just tell the seller they're interested in buying.

What are the rules for this?

 Hello Gary...

Cash is the trigger word in advertising so please use it.

I have bought a lot of houses and have always paid cash for them. Even when buying on terms we are still using CASH to pay those terms. Some people I am sure have bought a house by trading a equally valued asset however it is rare in today's world.  It was fairly common years back.

The question of how do you buy a house with CASH and without terms from the seller or lender if the you do not have CASH. You lower the price paid for the house to the amount of cash you have.  Which is actually your cash vs terms presentation.

Happy House Hunting

[Gary Mendrin]

Great information. It seems like there is more than one school of thought about this subject.

@David Wright thanks for the wise advice on how to properly represent yourself as a wholesaler. Wholesaling is one of the strategies I'm interested in, as of now I'm just starting out. I would send out letters for fix and flipping and buy and hold, too. As for advertising, I also believe it's very important to be honest and forthright about everything in business. If I understand you correctly, you understand CASH to mean CASH that is currently in my bank account.

@Michael Quarles I enjoy your podcast, and I hear you often making honesty and transparency the priority in business. I appreciate that so much. So with using CASH in advertising, I understand you to mean that CASH includes CASH in my bank account, CASH that I have access to through loans, and CASH paid to the seller with purchase terms. I assume you meant terms such as seller financing, but please correct me if I'm wrong.