How to find cash buyers for immediate closing ?

Question

Hello, I have my first contract and now I need a cash buyer. How and where would I find them?

Jay Hinrichs · Answer

John now that is a clever way to get listings.. you know the seller wants to sell..  agents would be smart to put that one in their quiver

John Thedford · Answer

Many states prohibit marketing properties you do NOT own unless you are licensed. Florida is one of them. I am pretty sure there are many states with similar laws. These laws were enacted to protect the public. The good news for the OP is the seller HAS a buyer...HER. Of course, that may really not be the case and maybe she had no intention of actually buying it but forgot to mention that tiny detail to what is now an uninformed seller.

Jerryll Noorden · Answer

Hey Clark,

Note I am not a lawyer, but I would think it is illegal to put a picture up of the house. My logic would tell me that marketing is showing what you are getting for a profit. That I think is the definition of marketing.. well kind of.. really really trimmed down. If you look it up online, you will get 3 billion definitions all different...

If someone catches me ... how would I explain that I am not marketing the house when I put a picture out there for everyone to see. So yeah be careful.

Sending a picture to a list of people in your email is not "marketing", because not anyone and everyone can find it, only the list you send it to. When you show  the house on a platform the public has access to, now that becomes questionable.

Also not because wholesalers do it, means it is legal. Sure not many states enforce it, but they are then just lucky.

Again, nothing I say should be taken as law. This is just the limited knowledge that I know, and I am just not willing to risk it. :)

Ohh one other VERY important thing.

"Legal Teams backing you up"... means very little believe it or not.

I have encountered SO many lawyers telling me it is OK to do this and that, while it blatantly is not. See they can tell you what they want. It is the state laws that will get you, and if they do, you cant defend yourself with "Ohh but my lawyer told me it is OK".

It really SUCKS.. but it is your responsibility that your actions are within the boundaries of the law.

If you cant go to a lawyer to double check things.. who do you count on right?

Clark Kirkpatrick · Answer

@Jerryll Noorden Lakila does not want to market a house, she wants to market her contractual interest in a house. She's not selling a house. She's selling a contract. The homeowner is selling the house. Putting a photo up of what the contract will get you - is that illegal? I'm not a wholesaler or a legal expert, so I actually don't know.

Wholesalers that I buy from do market their houses with photos. They generally send them to their email lists. And these are people with proper legal teams that back them up, so I am quite confident that this is legal. Is it somehow different to do the same thing on Craigslist instead of an email blast to your general list?

The contract the wholesaler uses says "and/or assignees" or something like that, which allows for the wholesaler to assign the contract to someone else. What law are you referring to that prohibits them from advertising their interest in a contract that allows for assignees?

John Thedford · Answer

Many states prohibit marketing properties you do not own unless you are licensed. That is the legal aspect but does not keep dishonest people from doing so. What is even worse is the damage done to sellers when fake buyers walk on the deal.

Congratulations on what? Skirting laws? Possibly misleading sellers? If the OP is not licensed they are doing the exact same job as you except ..no license no education no oversight no insurance and no protection for the public.

Jerryll Noorden · Answer

Morning morning.

Note, you can't advertise a wholesale deal (the traditional way). You can definitely not put a picture up, because then you are marketing a house you do not own.

There is a lot of debate going on how you can market a contract and not the house, but honestly, you are playing with fire. You can justify it to yourself how ever it makes sense to you. If your state doesnt agree with your infallible logic, you lose.

I hate saying this but,...

go to your REI meetings. Or go to craigslist and post something along the lines of, "Hey we get properties regularly, and need to find cash buyers to offload them". The problem with this is that every real and fake wholesaler says thes when they obviously don't have a deal.

So the trick is, prove that you have the leads.'

I do this:

"We get leads every single day. We don't just put anyone on our list. Show us that you have a track record of closing and we will determine if you are eligible to be on the list". Then we show proof that we are not BSing

We don't just do this because we want to show we are different and real, and unlike anyone else. But when you deny people access like that they start to see and crave to be on our list because of obvious value.

But in general. If your contract is a good deal, it will be easy to get rid of it.

Let the Jerryll Be With You... Always!

Ola Dantis · Answer

@Lakila Austin Honestly, you should have built a buyer's list ahead of time.

You could sign for BWI MeetUp group and send an email of your deal to the group. You can also sign up for other REI group in MD.

Good luck...

Rachelle C. · Answer

@Lakila Austin

First,  Congratulations!!!

Post or look for cash buyers on Craigslist in your area. Post your property here on BiggerPockets for sure and post your property on Cash Buyer Facebook pages.

Clark Kirkpatrick · Answer

You could always advertise the deal online - put up a photo and some basic numbers (purchase price, market rent, ARV, rehab cost - or whatever) and say that you're looking for a cash buyer with a quick closing. Facebook marketplace, Craigslist, etc. If it's really a good deal, I bet people would respond.

How to find cash buyers for immediate closing ?

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