Those of us who wholesale homes know that it’s critical to have buyers ready to buy your homes as soon as you get them under contract. You think you have a lot on your hands and want to sell the contract wholesale to a cash buyer.
The biggest challenge many wholesalers face is finding cash buyers. So how do you do it? Here are five suggestions.
1. Call all the ‘We Buy Homes’ ads in the area of your farm. There are many other investors looking for a good deal. You know that people who advertise are looking for great deals. Call all billboards, print ads, and online ads. Let them know you have a deal. When you talk to them, don’t talk about how nice the house is or how it will look after the rehab. These are investors and what they really want to know is how much is in it for them. Tell them the value after repair, the estimated cost to repair, and what you are asking for the house. If they say no, ask them in which areas they want to buy a house and what discount they are looking for. Then go find them an offer that meets their criteria.
2. Network with mortgage brokers, real estate agents, insurance agents, etc. Create a network and let everyone know what you do. Let’s face it, if you can recommend a business to them, they will want to help you. So if you don’t have a prior relationship with them, send them some business. You probably come across a lot of sellers that you can’t work with because they want a retail price. Refer these sellers to real estate agents so they can list the house. Also refer them to the mortgage broker; they will probably need a mortgage for their next purchase. Feed your network and they will feed you. That real estate agent or mortgage broker may work with an investor looking to buy more houses. He can figure out how he can compensate them when one of his investor contacts buys the house he has under contract.
3. Go to your local REIA meetings. This is where many investors go each month to keep up with the latest information. All REIA meetings generally have time set aside at the beginning of the meeting for networking. Talk to everyone you can and let them know you have wholesale deals and are looking for cash buyers. Some meetings allow members to post their information, so put up the flyer on your property for people to pick up. Pass out the flyer for your property 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 to let everyone know about your offer. Remember to stick to numbers and give your contact information.
4. Title companies are a great source of potential clients. One of my local title companies sells a list of names for a very, very low price. I ask about homeowners in the area of my farm who are absentee homeowners, have bought in the last 6 months and have 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 your list. Once they sign up for your list, you can contact them to find out more about what they’re looking for.
5. Post an ad in the local newspaper or online. You can place ads in newspapers like Thrifty Nickel and Pennysaver. Your ad should have keywords that investors are searching 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 may ask for your name, phone number, email address, and purchase criteria.
These are just some of the ways to build your buyers list. And remember, it’s not about how many people are on your buyer’s list, it’s about getting active investors on your buyer’s list. You are much better off with a buyer’s list of investors who are actively buying properties. That way, you can wholesale your offerings quickly and easily. When you treat them right and give them a deal where they can make money, they will come back to you when they are ready to buy their next property.
