Quote from
@Wale Lawal:
@Joe Barty-King
Cash buyers are not confined to a single demographic or industry. Anyone with a little extra money on their hands with the intent of buying real estate may be considered a legitimate lead. Therefore, relegating your search to a single buyers list neglects the unlimited potential that is all around us. So, instead of wholesaling your next property to a single buyers list, try looking “outside of the box” to find cash buyers for real estate deals.
If you already know where to find cash buyers, you are ahead of the game. However, if you need a few suggestions with where to start, the following list should get the ball rolling:
Craigslist
There are many ways to use Craigslist to find cash buyers. For starters, you should spend some time looking at the property listings. There, you will get an idea of what other homeowners are looking to accomplish. Many of the selling listings are actually from investors in your market. Even though they are selling, there is a good chance they are interested in buying as well. Reach out to them to see if they are actively looking for real estate. You can also make a note of any real estate agents who are promoting these listings. They often know a handful of investors they directly work with. Explain what you do and if they would mind passing your contact information along to their investors.
Real Estate Auctions
Many real estate investors still flock to a variety of types of property auctions in search of deals. They are armed with cash and are ready to move quickly. The problem many face is being outbid by a few entrenched players who dominate local auctions or others willing to pay too much. Many leave these auctions with their cash still in hand. What you need to do is to introduce yourself at these auctions. They need deals; you’ve got them. In fact, you can give them better deals in most cases. Be sure to let them know the advantages of working with you.
Personal Property Signs
Generally considered one of the most straightforward strategies exercised by those trying to find cash buyers, personal property signs are exactly what they sound like: signs placed on a subject property with the intent to market it. Not unlike bandit signs, personal property signs will direct interested buyers to your own contact information.
However, in addition to providing prospective buyers with a way to contact you, personal property signs are blatant in their attempts to sell. Whereas a bandit sign will typically be vaguer and suggest “we buy houses,” personal property signs will state the home is for sale. Be sure to use bright colors and strategic placement to your advantage to maximize exposure.
Perhaps even more importantly, however, you’ll want to memorize the property’s details to answer any inquiries with an authoritative and confident voice. The more you can tell inquisitive callers about the property, the more likely you will foster a “hot” lead.
Tax Assessor’s Website
Finding cash buyers may be as straightforward or as complex as you make it; other times, it's as easy as familiarizing yourself with a local tax assessor's website. If you don't know how to find cash buyers, spend some time navigating a local tax assessor's website. Browse the site for ownership information that may suggest a buyer's intent. You will want to pay special considerations to properties that investors own, as they are more likely to be willing and able cash buyers for your own home. There are a couple of telltale signs that an investor may own a home. The first, and most obvious sign, is that an LLC owns the home. Any home owned by an LLC would suggest it's an investment property. Second, be sure to keep an eye out for owners with multiple homes in an area. Anyone with more than a single property may be interested in adding another and represent a cash buyer.
Bandit Signs
Bandit sign campaigns is run in almost every neighborhood, and many people don't realize that they are a great source for finding cash buyers. All of the "we buy houses" or "close in 5 days" signs you see are potential buyers for your next deal. Signs should come complete with either an email or phone number that should be used to generate leads. In much the same way it's recommended to contact buyers and sellers from the MLS, you should reach out to the numbers found on bandit signs. Remember, you are providing them with a free source of leads. They have nothing to lose by you sending them a potential deal.
Real Estate Crowdfunding
One of the biggest challenges to finding cash buyers, especially in hot markets, is that many individuals have limited capital. They all want to invest, but many don’t have the cash to take whole deals down themselves. Or, they may prefer to diversify what they have to minimize risk. Crowdfunding can be a great way to leverage the above strategies’ benefits while reaching a larger and broader pool of capital.
Google Adwords
Pay-per-click (PPC) advertising campaigns using Google Adwords can be great. They can offer fast results with relatively predictable returns. Of course, many find that they are up against competition here, too. In healthy markets, they may be just one of a dozen Google ads. If they aren’t dominating the search results with the real estate website and blogs, there are even more competitors per page of search results. However, with savvy keyword research, you can quickly learn how to stay ahead of the game. Focus on boosting your search rankings with targeted SEO, and then bid out everyone else to dominate the ad space. Completely push the competition off the page.
MLS
A good relationship with a local real estate agent will open many doors for your business. In addition to finding and selling properties, they can also provide valuable information from the MLS. Unfortunately, when most investors think of the MLS, they assume it is only used for running comparable listings. However, the MLS can do much more than that.
You can ask your real estate agent for a list of all-cash transactions over the last 90 days. The MLS should provide a good starting point between sellers without mortgages on the listing or deals that have closed with cash.
From there, you should reach out to these individuals to get an idea of what types of properties and deals they look for. First, it is a good idea to have a mini-application ready to store any information. Next, this information should be transferred to a bigger database, where you can store email addresses and other contact information. Finally, ask if they would be interested in receiving notifications the next time you have a deal that you think fits their criteria.
Real Estate Clubs & Networking Events
As good as it is to reach out to new contacts by email or phone, nothing beats face-to-face networking. You can find real estate investment clubs and meetings in just about any market. On top of that, they are great sources to find new buyers. In most meetings, there is an hour or so dedicated to the act of networking. This is your chance to connect with real investors who are doing business in your area. So reach out to as many people as you can with business cards in hand.
Not everyone you meet will be receptive, but the people you connect with will be valuable additions to your buyers list. The same is the case with networking groups. Almost everyone in a local group knows someone who is an investor. Explain to them that you are also an investor who is always looking to make new contacts. The more people you meet, the greater chance you will find new cash buyers.
Online Lead Capture Form
Another way to find cash buyers is through online lead forms. An online lead capture form is presented on your website and allows potential cash buyers to submit their own contact information if they desire to be added to your buyers list. This will allow you to send them email updates and information. Furthermore, you can increase traffic to your website by utilizing social media or any other form of online advertising by using these leads.
Public Records
Finally, you can find cash buyers through your local public record’s office. Public records have information on every sale in your area. Access to this information varies among the county, but you can begin by Google searching your local area’s public records. If a property was purchased through financing, specifically in states that use mortgages, the deed and the lien from the loan are recorded by the county. If a cash buyer purchased it, no lien would be provided. You can also search public records through a local title company. Then, you can find cash buyers by accessing a list of properties sold without a mortgage lien.
iBuyers
iBuyers, also called instant buyers, are companies that buy homes using real estate technology and third-party title companies. iBuyers are often real estate tech companies and purchase a high volume of homes each year to resell. They earn money by making minimal changes to properties and reselling them for slightly higher prices. The business model is heavily based on the volume of sales, making iBuyers an excellent option for anyone searching for a quick, all-cash transaction.
When searching for iBuyers, it’s important to know that there are a lot of scams out there. Always mind your due diligence to determine if the company you want to work with is legit. Once you find an iBuyer, the company will determine an appropriate purchase price using market data. If the offer is accepted, a third-party title company will help facilitate the closing process. Some of the best iBuyers to consider are:
Offerpad
Opendoor
Knock
Orchard
Flyhomes
1. Offerpad
Offerpads offers a lot of flexibility for sellers, and also offers fast closing on the day of your choice. They also offer other perks and services that their competitors don’t.
2. Opendoor
Opendoor usually offers less money for your house, but they make up for the difference in convenience and efficiency. If you’re trying to sell a home quickly and easily, Opendoor is a great option.
3. Knock
Knock is unique in that they offer you a chance to sell your home after you purchase a new one. This means that unlike a typical home sale, you’ll be free to look at homes and make a purchase before actually selling your home, however, it can incur costs if your current house sits on the market for a long period of time.
4. Orchard
Orchard allows you to exchange the current equity in your home for the purchase of a new home, and then selling your old home after the purchase. Orchard is a bit more selective in the houses that they will accept for their program, with them usually choosing newer homes rather than older ones.
5. Flyhomes
Flyhomes offers a lot of flexibility when it comes to buying and selling your home, and the worst case scenario is that you end up getting the appraised value for your home rather than the fair market value. If you want something simple, Flyhomes is a great option.
Open Houses
Yet another strategy is to attend open houses in the nearby area, specifically for fixer upper properties. These events are likely to attract cash buyers looking for their next deal. Investors can attend, network, and identify potentially interested buyers. Search online real estate listing websites, like Trulia or Zillow, in addition to asking local agents you may know for any upcoming open houses. Try to focus on other real estate investors and have your pitch ready in case you find a potential lead.
All the best!
