The best investors are mindful of two concepts when it comes to finding buyers for their properties: For starters, cash is king. Secondly, investors need to have as many buyers as they can. More often than not, this means it is necessary to look beyond a traditional buyers list in order to sell a property for a profit. While a buyers list is an amazing tool for wholesalers, it’s far from the only way to find cash buyers.
For those looking to assign their contract to an end buyer, finding cash buyers will speed up the transaction and result in quicker profits.
If that sounds like something you could get behind, you’re going to have to think outside of the box by using other strategies, in addition to your trusted buyers list. Continue reading to explore alternative methods for finding cash buyers that even new investors can implement.
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 own search to a single buyers list is to neglect the unlimited potential that is all around us. 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:
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 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 quick. The problem many face is being out bid by a few entrenched players which 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 more vague 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, as to maximize exposure.
Perhaps even more importantly, however, you’ll want to memorize the property’s details, as to answer any inquires with an authoritative and confident voice. The more you are able to tell inquisitive callers about the property, the more likely you are to foster a “hot” lead.
Tax Assessor’s Website
Finding cash buyers may be as simple or as hard 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, simply spend some time navigating the website of a local tax assessor. Browse the site for ownership information that may suggest a buyer’s intent. You will want to pay special considerations to properties that are owned by investors, as they are more likely to be willing and able cash buyers for your own home. There are a couple of telltale signs that a home may be owned by an investor. The first, and most obvious sign, is that the home is owned under an LLC. 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 could represent a cash buyer.
Bandit sign campaigns are 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 there are many individuals with limited amounts of 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 benefits of the above strategies, while reaching a larger and broader pool of capital.
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. Just completely push the competition off the page.
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 they get from the MLS. 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. Between sellers without mortgages on the listing or deals that have closed with cash, the MLS should provide a good starting point.
From there, you should reach out to these individuals to get an idea of what types of properties and deals they look for. It is a good idea to have a mini application ready to store any information. This information should be transferred over to a bigger database, where you can store email addresses and other contact information. 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. 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 do connect with will be valuable additions to your buyers list. The same is the case with networking groups. Almost everyone at 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.
Take a look at the following infographic for a more in-depth description of some of our favorite methods:
Today’s real estate investors have come to rely on their buyers list for quick and efficient transactions. What better way to find cash buyers than to resort to the same list of trusted contacts that have come through in the past? A buyers list is, after all, an investors most trusted source for completing sales under specified conditions. Increase your chances of finding cash buyers by looking beyond your buyers list, and implementing some of the strategies listed above.
Have you had success finding cash buyers for real estate deals? Please feel free to share any tips you may have on the comments below for our other readers: