Where Can I find A Cash Buyer?

Question

I just signed my first property under contract, in a few hours which was pretty cool. I had a list of 5 potential cash buyer companies in Atlanta but when I introduced my deal, they did not know what to do with it. The house is beautiful, no repair needed, it has a large outdoor pool, a 3 bedrooms, 2 baths, 1 mile from restaurants and shopping center. So here are the points that they these buyers mentioned:

1 - They are no comparables for this house, it's a tough one

2 - Not enough equity or profits for them

3 - The house was on Zillow (FSBO) for a higher price

They did not like the fact that I negotiate the price down. The house is worth $189.000 and I let it go for $172,000 ($165,000 for the house and my fee of $7,000).   I do not have enough cash buyers to introduce this deal to and I am trying to find more investors. Can someone know where I can get proper exposure for this deal?

Thank you!

Kevin Sobilo · Answer

@Christine Garnier, so where is the money for the investor (cash buyer)?

You're saying there is no work needed to the house. So, no opportunity to rehab and add value.

The price you're selling for and stating that its worth would net the investor approximately $0 if they just resell it using an agent with commissions and closing costs.

You didn't mention what market rents were. So, no clue if it could be a cash-flowing rental.

Just because you are offering it for less than you say its market value is doesn't mean there is a money making deal for an investor here.

Jerryll Noorden · Answer

Kevin...Wait my dude. Stop. Understand the concept of motivated sellers!

No rehab needed DOES NOT MEAN no room for profits.

Do you know HOW often we get houses under contract at a HUGE discount without much work to be done?

Why?

How?

Because the sellers were motivated!! Motivation doesn't revolve on "money". It can mean anything. Stress, Time, Cost of owning the house, Illness... money is not always the deciding factor when it comes to motivated sellers... in fact .. often it isn't (when dealing with TRUE motivation).

Now your turn Christine!

If the house is worth $189K:

Closing costs: $15K- $20K

This alone brings it down to $170K (at this price NO ONE made any profits yet)

So lets say the back end buyer wants a $20K profit. That would bring it down to $150K

Now YOU still didn't make any profits... so $7K you said?

Fine

Now that brings it down to $143K.

So you should have signed that house for $143K.

Now this is not even realistic. NEVERRRRRRRRRRRRR EVERRRRRRRRRRRRRRRRRRR does a house need no repairs.. NEVERRRRRRRRRRRR.

Even if it is a maid service to clean the house out.. and what ever miscellaneous shenanigans.. lets say $5K in repairs, holding, maintenance, what ever....

All this brings it down to about $135K, and this if EVERYTHING goes as planned.

Now..

Do you see why you won't get any (savvy) buyers for this?

Now I put effort into answering your question, and I am willing to work with you to train you doing this right. In order for me to do so, I want you to answer me this HONESTLY:

How did you come to the number of $172K?

Jerryll Noorden · Answer

That is exactly what I figured, and that is why I was asking. See when people just tell you "you're wrong here on the forums, no one really learns. That is why I will explain this to you and everyone else reading this post...

This is the mistake you made.

Let me teach you how to wholesale.

What most wholesalers do is they find a property, then negotiate negotiate and do a bit more negotiating until the seller won't budge anymore and that is the number they sign the contract for.

(pretty much what you did). This is utterly wrong. What the seller wants for the house is completely irrelevant.

You need to do the numbers (like I did there above) and then explain to the seller WHY that number is the correct number. If the seller is motivated they WILL accept the offer, hence my constantly telling everyone, the trick to fame fortune riches and domination is... dealing with motivated sellers. The seller really wants to sell, and of course they want as much for the house as possible. But when dealing with motivated sellers, speed / time / hassle free is often more valuable than "money". As long as you can demonstrate that this "absurdly low offer" in fact is not actually "absurdly low", but more a "reasonable" and fair offer, they will see you and the offer instantly differently.

"Ohh I see what you did, I see how it works, yeah it makes sense. It is not what I expected but.... how fast can I get the cash.." those are the responses we usually get. They express their surprise in acceptance, and the reason why is because we were transparent and honest. NO ONE is forcing them to sign the contract. They can find someone else if they don't like my offer and most of the time they don't.

What wholesalers need to realize is that they are not the scum of the Earth. They are not bottom feeders. You don't need to accept being walked over. EVERYONE needs wholesalers. Cash buyers, motivated sellers, buy and hold investors, flippers... everyone needs great deals (on the investing side) and everyone needs their house sold fast without hassle (on the motivated seller side). Stand your ground. Say "No as a business it doesn't make sense me offering you that much, as you can clearly see, I would lose $12K on this deal if I gave you $165K".

So now you understand the basic concept yes?

Now what you should do, is take a few properties, do some ARVs. cost of repairs, and make offers as excersise.

BTW, don't bother going to Zillow to find deals, ESPECIALLY if they are FSBO!

Why do you think people do FSBO? These in my book are one of the worse possible deal sources.

The reason why they want to do FSBO often is because they want to save on agent fees, right? They want MORE money. .. in EXCHANGE for MORE hassle, and MORE time. Going with an agent, they would get their house sold faster, with less work. They rather do more effort, hassle and wait longer to get more money. It is the opposite of motivated sellers.

There you go!

Don't rely on hedge funds. No shortcuts. No easy path. You truly have to become good at what you do to make it.

The seller could also directly go to hedge funds right?

Honestly, really focus on becoming the best at this, instead of focusing on making money, or a deal.

Focus on making a deal, and chances are you will make A deal.. as in ONE deal.

Focus on honing your craft and I promise you, your reputation will proceed you and deals WILL come to you!

Do you know I do not look for deals? EVERY SINGLE DEAL, finds me. I never spend a cent or any effort getting a deal. This is because I am pretty darn good at my craft! Do the same!

Wale Lawal · Answer

@Christine Garnier

Cash buyers come in many shapes and sizes—from recent homeowners to wealthy retirees to investment firms—and are not constricted to a single demographic, age group, or industry. That’s why it comes in handy to get creative when looking for cash buyers for your property. Below are few ways to find cash buyers.

1. Build a lead generation websiteWith a simple website, you can easily create a lead generation form that lets prospective cash buyers submit their names and contact info. To draw traffic to your website, we suggest trying diverse methods like traditional advertising, content marketing and SEO, posting on social media, creating pay-per-click (PPC) advertising campaigns with Google Adwords, or posting on classifieds platforms like Craigslist. 2. Post and search on Craigslist‍Craiglist.com is a wonderful resource for finding both motivated cash buyers and sellers. In the Craigslist “real estate for sale” section, you can post advertisements for your website or properties for free to drive buyer leads. A succinct, simple ad with an eye-catching photo and brief description of your property and purchase criteria can connect you with serious cash buyers. Craigslist is useful for more than posting your own ads. You can also leverage the platform to search for other sellers, who are often likely to be looking for properties to purchase as well. Check out the Craigslist section “houses/apartment for rent” to find the contact info of dozens of landlords and investors who may be able to deliver a cash deal. ‍3. Attend property auctions‍Property or home auctions offer buyers the opportunity to purchase foreclosed homes at below-market value. Since home auctions draw real investors who have sufficient cash to purchase a property, these events can be an excellent place to meet and network with cash buyers. To find property auctions in your area, try your local city or county website or browse a local newspaper.We suggest going to as many events as you can in different areas to capture a diversity of leads. When you attend home auction events, make sure you come armed with business cards, a compelling 30-second elevator pitch, and a smile. 4. Connect with real estate agents‍With local insights, experience, and access to realtor-exclusive tools, real estate agents can be an invaluable resource for finding cash buyers. Building a solid relationship with a real estate agent can earn you a list of recent cash sales. While a realtor might not be able to disclose the names and contact information of cash buyers, a list with addresses of properties purchased with cash can give you a good jumping-off point for conducting your own search through public records. 5. Join local Real Estate Investing Associations (REIAs)‍Joining local Real Estate Investing Associations (REIAs) lets you network with key players in your market. At REIA meetings, you can meet a huge variety of like-minded individuals with varying interests, backgrounds, and resources. Not only will you likely meet high-quality cash buyers, but you can also connect with everyone from real estate agents and hard money lenders to wholesalers and rehabbers. Finding a local REIA can be as simple as a quick Google search or browsing the National Real Estate Investors Association website. Note that many REIAs charge a small fee per meeting or for an annual membership. 6. Search public records‍You can find information on every sale in your county at your local public records office or potentially on its website. Although access to this information may vary from county to county, you can typically see when a property is purchased with financing, as the deed and the lien from the loan are recorded by the county. If no lien is provided, you know the purchaser was likely a cash buyer. Though browsing public records often requires you to visit your local office in person, your hunt can begin online. Start by Google searching your local office or the office in the area where your properties are located.

Good Luck!

Jason Lum · Answer

Opendoor. Offerpad. Maybe roofstock (thats more for rentals). They have criteria and that home may or may not meet it.

post on the investor FB groups also. etc. There is no BEST way to find a buyer. do everything you can all at the same time.

If you dont find a buyer and lose your EMD, and think of it as tuition...great lessons above!!!

Christine Garnier · Answer

Thank you for your message Wale, it is a blessing to find such precious information here on the forum. Thank you for sharing all the tips with me, it is a blessing. Have a great day.

Wale Lawal · Answer

Most welcome!

Keep learning and growing.

Ryan Deasy · Answer

@Christine Garnier

post it in a local real estate facebook group!

Eliott Elias · Answer

Bigger pockets, Facebook, networking events, realtors who have cash buyers

Where Can I find A Cash Buyer?

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