Where do you find legitimate cash buyers?

Question

Almost 100% of the “cash buyers” I’ve talked to are actually wholesalers wanting to daisy chain.

As far as people saying that if you get a deal, the money will come… they are FOS. The “money” will come is more like it.

Someone that I highly trusted who gave speeches at my local REIA and has been in real estate for 10 years turned out to be a fake.

Facebook is full of JVers and Zillow For Rents is full of big property management companies.

WTH do I do now?

Jessica Green · Answer

You can use Propstream to search recently sold properties that were paid for in cash. Reach out to those buyers.

Drew Sygit · Answer

@Mike Schorah welcome to the world of wholesaling, where no one has money, but there's lots of "fake it until you make it".

What deals have you found that you couldn't find buyers for? Going to guess you haven't found an ACTUAL deal, so no buyers were interested.

We're VERY PICKY about what wholesalers we connect with and WILL NOT connect with any that want to add us to their buyers list with NO INVENTORY. In our experience, these wholesalers are inexperienced and just send out junk, if anything. They have little idea of what an actual deal is, but once in a while get lucky peddling their crap - just like a blind squirrel.

Want to become an actual Wholesaler? Find geat deals! It will take HARD work for at least 6-12 months, there are NO shortcuts.

Read below how to start building your own network:

Per this NY Times article, the average American knows around 600 people.
https://www.nytimes.com/2013/02/19/science/the-average-american-knows-how-many-people.html#:~:text=The%20average%20American%20knows%20about,do%20you%20know%20named%20Kevin%3F

Per the US Census Bureau, the average American moves 11.7 time in their life, which based upon an approximate lifespan of 84 years, works out to be about every 7 years.
https://www.census.gov/topics/population/migration/guidance/calculating-migration-expectancy.html#:~:text=Using%202007%20ACS%20data%2C%20it,one%20move%20per%20single%20year

So, if the average American knows 600 people and they each move about every 7 years, that means that the average American knows around 85 people that move in any given year.

How many of those moves do you want to be involved in?

To maximize the number of transactions you’re involved in you will need to:

• Be Top of Mind when they think about moving - which requires consistent reminders.
• Be seen as an Expert – which requires a consistent message and Evidence of Success stories
• Gain their Trust – which requires communicating integrity

So, start out by listing everyone you know in an Excel spreadsheet.

Why Excel?  Because later, you can easily use it as your mailing list! Create columns for Name, Street Address, City, State, Zip and then contact info: Last Contact, Relationship, Status, Email & Phone.

IMPORTANT: do NOT ask people for THEIR business, ask for referrals! Why? Because they will get defensive if they feel you are pressuring them. Remember, they can always refer themselves😊

Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:

• Just inherited a home
• Had a loved one pass away
• Is behind on their mortgage or tax payments
• Has a relative that can’t take care of their house anymore
• Has a house they’re having trouble selling
• Is facing bankruptcy
• Knows a probate attorney
• Knows a bankruptcy attorney
• etc

Why only three off the list per contact? Because on average, we can only remember three things at a time. If you try to go over the whole list, you’ll lose the attention of an average person and they won’t remember anything!

It should only take you about a month or two to contact everyone on your list and then the tough part – you start all over again.

Why the repetition? Because it takes repetition for people to remember things and you have to be top-of-mind when they encounter a potential client for you!

Have you ever been to McDonalds? Of course you have! So, why is McDonalds still spending billions on advertising?

One more tip – people remember stories that trigger their emotions. So, tell a story of how you (or a fellow wholesaler) helped a seller out with their challenge(s). Change your story each month as different stories will resonate with different people AND use each story to emphasize one of your “who do you know…” questions.

As you start closing deals, you will need to reinvest your profits into mailing lists and other scalable activities to grow your business.

One last thing – we recommended you create a Status column on your spreadsheet, now we’ll explain why. If you find someone that seems to know a lot of people needing your services, wouldn’t it make sense to focus more resources on them? Conversely, you will run into people on your list that just seem to be a waste of time, so you’ll want to avoid them. So, create status codes for both of these and a few in-between codes to help you work smarter, not harder.

John O'Leary · Answer

Hey Mike!

I'm in the Boardroom mastermind, and work with wholesalers nationwide. Anywhere between 60-70% of their "cash buyers" use financing. One of the best approaches is to partner with a lender. Lenders talk to buyers all day, and the buyers shop for financing before locating a deal. The lender is looking to finance a deal, and rather to wait for the investor to find a deal it's much easier to partner them with someone who has inventory ready to go. I run this play daily with great success. Happy to connect if you have any questions.

Good luck!

Scott E. · Answer

I'm all for networking and participating in local meetups, surfing the forums, listening to podcasts, and watching YouTube videos. But as you have realized, these outlets are full of fakes. Which makes it hard to pick out the legitimate ones.

Just do some research on the top performing real estate agents in your market and start calling them. These agents are almost all guaranteed to have real cash buyers as clients. And if you bring them a good deal, they'll make the connection.

There are other creative ways to find cash buyers that require a bit more digging and due diligence. But this is one of those situations where you need to work smarter not harder. Just build relationships with the real estate agents.

Charles Carillo · Answer

@Mike Schorah

Go onto: https://www.listsource.com/; search your target area and you can filter by owners with high equity in their property. You can find property owners with 80%+ and 90%+ equity. If they recently purchased it; they are cash buyers and more than likely they are investors (or they just moved from CA or NY). It will help you get into direct contact with cash buyers. Also, you can reach out to some agents that work with cash buyers/investors. They are not going to want to waste time with non-cash buyers (and will most likely vet them beforehand) and you only have to pay the agents ~3%.

Nate Sanow · Answer

Look at closed deals. Research and skip trace the owner.

Where do you find legitimate cash buyers?

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