What are some of your methods in finding cash buyers in a new market?

Question

Hi everyone I am looking into venturing in wholesaling in the Los Angeles area and I was wondering if any of you who have been successful in wholesaling in a new market have any tip or methods in finding serious cash buyers.

Any help would be appreciated!

Will F. · Answer

Yes FIBIs are great.  If you have real deals then the cash buyers should follow.  -your own deal that you sourced directly -real repair costs -realistic ARV

Feel free to ad me to your buyers list if that's the case.

Mark Mynhier · Answer

@Annette Torsarkissian besides title companies, there are thousands of buyers at the local REI meetings. FIBI (For Investors By Investors) is having their annual Holiday party in a couple of weeks. THAT is probably going to be the biggest gathering as a pool for you to fish in. Club In Action has a monthly meeting in Burbank, Sam Sadat has Sam's RE Club in Culver City, there are a few other good ones (and a few bad ones, too).

You can also connect with BP members on here who flip houses. We are a great source of to buy from you, if the deal is good. Network on here to find out the criteria that we want and then find houses that we need. Win/Win!

Will F. · Answer

No problem.  Also if you do your due dilligence, just like your buying the property yourself and run numbers and things while holding a real deal first hand then you'll be ahead of a lot of wholesellers!  One guy that I spoke to who seemed to really know his stuff was Tim Gordon  And there are likely more pros here on BP so you're at the right place

Nikki Robinson · Answer

I just posted about my way of getting wholesale deals in front of buyers at http://www.biggerpockets.com/forums/93/topics/193541-tip-finding-real-buyers-for-your-deals

Mark Mynhier · Answer

@Annette Torsarkissian , I would discuss office policies with your Broker before wholesaling the properties. I'm no longer a licensed Agent, but when I was there was no legal issues (times may have changed). The person who has the Broker's license may have an issue with it or may not, that is a conversation that you need to have, though.

Take the list, start sending out some hand written letters (you can probably find some templates on here) and just start trying to get some properties under contract. Work on creating a buyer's list (some people on here would be grateful to buy from you if the numbers are right) and things will fall into place.

Annette Torsarkissian · Answer

@Mark Mynhier I appreciate all of the useful infomation you have provided. I foudn it all to be very useful. You are correct about wholesalers sending a lot of unrealistic deals. I contacted a lot of wholesalers on craigslist and called many bandit signs. I just got a list from my title company for a list of absentee owners in Los Angeles zip codes that I feel have the most investor activity. What are some useful lists you would recommend I could get from a title to begin marketing?

Thank you,  I am always on the lookout for new website that can give me more information on an area I am working in. Since I am a licensed real estate agent is there any liability involved in wholesaling properties?

Mark Mynhier · Answer

Where you farm for wholesales is a subject with lots of answers, depending on who you ask. Personally, I don't typically wholesale, but I always have one rule of thumb: Know your market. If you are comfortable knowing all of the information that you need to present the property accurately, then work that area. www.city-data.com is a great source of information about any area. Remember that you live and die by your reputation in this business. If you get a rep for a wholesaler that gives good deals and accurate comps (always a problem with wholesalers I have tried working with), then your business will grow. If your comps are unicorns and rainbows and the deals don't have meat on them, your business will not and you will get a reputation as such.

I wrote a blog about it on MOR Financial (http://www.morfinancial.com/#!Your-Reputation-Precedes-You/c168d/9505220F-BF2C-4616-A05A-E77CCC96807A) that talks about building your reputation, if you want to read it.

Annette Torsarkissian · Answer

@Will F. Thanks for the advice. I'll add you to my buyers list and let you know when I get a deal.

Annette Torsarkissian · Answer

@Nazz Wang  Thanks for the advice. I will definitely give my title rep a call and get those Cash buyers. Sometimes I just need a little help to get my mind going on creative ideas. @Mark Mynhier I am currently focusing vacant/distressed properties in San Fernando Valley and Los Angeles.Do you feel that farming an area to look for properties to wholesale would be more effective? I'll add those REI meetings to my calendar and start networking.

Nazz Wang · Answer

talk to title companies.

What are some of your methods in finding cash buyers in a new market?

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