Flipping to hedge funds 101

 I get a lot of emails from BPer's these days asking for help with selling to hedge funds so I thought I would put some basics down for you all.

Firstly let me say there is no secret formula that I can think of. It is no dark art. Once you know how to flip then selling to anybody is really the same.

So I think the real question is how do I find a hedge fund buyer or their agent. Again I don't know how qualified I really am to answer that as my own experience is limited.

But if I dropped into Memphis this week with no connections and no money and I wanted to try and find who to sell to here's what I would do.

1.  Ring every large property management company I could find and explain I was looking to supply quality homes to hedge fund buyers in the city and

A:  Do they buy on behalf of any funds and if if not...

B:  Could they refer me to any funds they know are buying in the city.

2.  Go and sit on the steps for at least a week and write down every buying entity that buys more than 1 house a day on average. Then go and look up those entities and see if any of them lead to a hedge fund.

3.  Try and get to a closing attorney in the city and ask them which funds are buying and how to contact them. They will all know, whether they will tell you is another thing but you never know unless you ask.

4.  If you are still stuck try Google. Most hedge funds are reported on and publish their own data regularly.  So a specific search on your city name AND "institutional investor" AND "hedge fund"  just might bring up an article giving you the hedge funds name.

So by now you should have your contacts, the rest is up to you.  You need to contact the buyers, find out their buying criteria and talk your way into being able to show them some of your deals. 

The rest is all just experience.  My experience with 2 funds is they have rules which are easy to follow and they always perform so once you can get in front of one you have a great opportunity to flip a lot of houses!