Those of us who are wholesaling houses know it is critical to have buyers ready to purchase your houses as soon as you get them under contract. You think you have a great deal in hand and want to wholesale the contract to a cash buyer.
The biggest challenge many wholesalers face is finding the cash buyers. So, how do you do it? Here are five suggestions.
Call all the ‘We Buy Houses’ ads in your farm area. There are many other investors looking for a good deal. You know that the people who are advertising are looking for great deals. Call all the signs, print advertisements, and online advertisements. Let them know you have a deal. When you speak with them don’t talk about how pretty the house is, or what it could look like after the rehab. These are investors and want they really want to know is how much is in it for them. Tell them the after repaired value, the estimated fix-up cost, and what you are asking for the house. If they say no, ask them what areas they want to buy a house in and what discount they are looking for. Then go find them a deal that meet their criteria.
Network with mortgage brokers, real estate agents, insurance agents, etc. Build a network and letting everyone know what you do. Let’s face it, if you can refer them some business, they will want to help you out. So if you don’t have a previous relationship with them, send them some business. You probably come across many sellers that you can’t work with because they want retail price. Refer these sellers to the real estate agents so they can list the house. Also refer them to the mortgage broker; they will likely need a mortgage for their next purchase. Feed your network and they will feed you. That realtor or mortgage broker may work with an investor that is looking to buy more houses. You can work out how you can compensate them when one of their investor contacts buys the house you have under contract.
Go to your local REIA meetings. This is where many investors go every month to stay up to date on the latest information. All of the REIA meetings typically have some time set aside at the beginning of the meeting for networking. Speak with everyone you can and let them know you have wholesale deals and are looking for cash buyers. Some meetings allow members to put out their information, so put your property flyer out for people to pick up. Hand your property flyer to everyone you can at the meeting. My local meeting has a portion of the meeting set aside for members to get up for 30 seconds and tell everyone in the room what they have, want or need. This is a great opportunity for everyone to hear about your deal. Remember to keep it to the numbers and give out your contact information.
Title Companies are a great source for leads. One of my local title companies sells a list of names for a very, very low price. I ask for the homeowners in my farm area, who are absentee owners, have purchased in the last 6 months, and paid all cash. These are investor buyers who have access to cash and can close quickly. Send them a postcard asking them to sign up for your buyers list. Offer them a free report, DVD, or CD to entice them to get on your list. Once they sign up for your list you can then contact them to get more specific about what they are looking for.
Run an ad in the local paper or online. You can run ads in papers such as the Thrifty Nickel and the Pennysaver. The ad should have keywords that investors are looking for such as “cheap”, “handyman special” or “below market”. In the ad, put your website so they can sign up quickly and easily. Or have a phone number that goes to an answering service. The answering service can ask them for their name, phone number, email address, and buying criteria.
These are just a few of the ways to build your buyers list. And remember, it’s not about how many people are on your buyers list, it’s about getting active investors on your buyers list. You are much better off with a buyer’s list of investors who are actively buying property. That way you can wholesale your deals quickly and easily. When you treat them right and give them a deal they can make money on, they will come back to you when they are ready to buy their next property.