What Comes First: The Cash Buyer or The Good Deal?

Question

Before trying to wholesale a property, should I build a cash buyers list first and then find deals that describe their criteria? Or should I put a property under contract and then find buyers in my area? Also, what is the best way to build a buyers list?

Jonathan Greene · Answer

I never understand why everyone thinks there is an order to this. And it's not you, there is constant streams of advice to do one first before the other, but it makes no sense. If you have buyers and no properties, you have nothing. And how can you get buyers to trust you when you are starting if you have nothing to offer them? If you have properties and no buyers, you have nothing. Sure, you are more likely to find buyers when you have an asset, but why wouldn't you build both at the same time. When you decide you want to wholesale you need to make contacts on all sides of the business - buyers, sellers, property managers, investors, contractors. Do both. Learn both.

Giovanni Cardenas · Answer

@Jonathan Greene

Thank you for the advice, sir!

Giovanni Cardenas · Answer

@Duncan Hayes

Great, thank you!

Duncan Hayes · Answer

@Giovanni Cardenas I’ve always found them on Facebook. I join real estate groups in my market and then I post that I’m looking for investors looking to purchase in whatever zip codes. When they respond I add them and message them to figure out their criteria.

Giovanni Cardenas · Answer

@Lydia T.

I did not think about Landlords changing their criteria's, thank you for the advice!

Giovanni Cardenas · Answer

@Joanne Eriaku

Thank you for your advice! Most likely I will do Reverse Wholesaling to make things easier for me to find deals that my cash buyers are looking for.

Giovanni Cardenas · Answer

@Duncan Hayes

Thank you, sir! That was how I was thinking too that if I find a cash buyer and know what he/she wants, it would be easier for me to find a property. So if I wanted to introduce myself to a cash buyer, how would I go about that? Also, where is the best place to look for cash buyers, since a lot of meetup groups are still not meeting in person?

Lydia R. · Answer

@Giovanni Cardenas This is the classic question! Its like the real estate version of which came first the chicken or the egg. Usually I say its a personal preference. When you have a hot deal you can drop it into a facebook group or a real estate meetup and usually get it sold. BUT in these coronavirus timesI am telling new wholesalers to focus on building a buyers list. A lot of buyers have changed their buying criteria as a result of the economic uncertainty. There are very few people buying properties for STR right now. I know some landlords who are no longer buying and a lot of the flippers I know have changed their buying criteria. So my advice right now is to start with a buyers list. Find out who is buying, what they are buying, where and at what price point. Look for deals based on your buyers criteria.

Joanne Eriaku · Answer

@Giovanni Cardenas, As surely as multiple organs are all working simultaneously...you have to ride those horses simultaneously....never stop finding funding, never stop finding buyers, never stop marketing, never stop diligently seeking deals...unless you chose to retire or have trained someone to do it on your behalf...or both. Also, just FYI, there is something called reverse wholesaling which means first understanding a specific Buyers need then going out to seek deals with his/her need in mind. You curve out your path based upon what works for you but never forget....all your organs are working, always.

Duncan Hayes · Answer

@Giovanni Cardenas in my opinion you only need one or two solid buyers. I personally feel like finding properties are much easier when you know what you’re looking for. & finding buyers is super easy. Being upfront and truthful with them about being new usually brings good things. There was never a time I could think of a buyer treating me bad because I was new. They were all extremely helpful & helped me in many ways, whether it was running numbers, checking comps, or even tips on maneuvering the market.

There is no correct or wrong way of doing it though, at the end of the day it’s all preference. The best thing I can tell you is don’t stress over which one you should find first & just find one.

Good luck.

What Comes First: The Cash Buyer or The Good Deal?

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