I have cash buyers but not properties

[Ron V]

If I have cash buyers and no properties at the moment , how can I work out deals with investors that have deals for sale.referal fee?

[Account Closed]

I've been at this since 1999 so I've only been through the end of one RE cycle, the beginning and end of that time that shall never come again, and now this phase. There are WAY more buyers with cash in the lower price ranges than ever before in my farm. In the middle of the boom, the rehabbers were borrowing hard money and the landlords were borrowing conventional. Today everyone and their mother wants to place $50-100K cash. The 50-60 something Boomers are out in full force with their savings and IRAs. They'll buy anything. Just like in 2005, but this time with cash. I've sold some things in the past few months where I'm not sure the buyers know what they are doing. Or rather, I don't understand their plan at the price they are paying.

As for finding deals, I suggest finding out first what the buyers want. Don't assume anything though. Ask what they think is a deal and just listen. Buyers really have different ideas and needs. Some will be happy to buy something for $75K that rents for $600 as long as it's in the right neighborhood and needs no rehab. I don't want that deal, but some do. Some only want units. They want units because they heard/think units is where it's at, even if the numbers aren't that great to me. Some just want to get in with anything that they have enough cash for. I'm not into setting up anyone for failure, but I will sell it for what the market can bear. Ryan Webber in a previous thread called this kind of selling, where the wholesaler sells retail to the the highest paying investor, as opposed to his regular rehab buyers, the "dark side". I've thought a lot about that. I'm good for now selling to the highest offer. When the open market/MLS no longer provides better pricing, I'll go back to my buyer's list. For right now, they don't want to pay what I can get. And I don't blame them.

Then you're probably gonna have to get pretty creative if your market is as competitive as people here make it sound. Think about ways to get to sellers that don't have listed properties. There's plenty to read on this site and other creative real estate sites about finding motivated sellers that aren't on the MLS. Read about problems (tax defaults, tenants, code violations, evictions, liens, deceased owners) and think about what you can bring to the table. Don't go after probates if you're not good with legal issues and if you are impatient. Don't go after tenant issues if you have no stomach for problem tenants/squatters. Think about how you can solve an owner's problem. I love working directly with sellers but it's not for everyone.