The Best Way to Find Cash Buyers
Ever wonder about the best way to find cash buyers when you’re wholesaling?
In this article, I want to share with you one of my number one tips for quickly and easily finding the most ideal cash buyers that you can wholesale your deals to.
After wholesaling hundreds of deals over the years, I have found that the very best cash buyer for a deal is an investor who...
- Bought a property recently (within the last 12 months)
- Bought a property in the same market as your wholesale deal (within 1 mile)
- Bought a property with cash (aka "cash buyer")
Think about it…Who better to wholesale your deal to then an active investor (bought recently), local to your deal (their ideal market) that paid cash!
So, how do you acquire this highly targeted list of cash buyers? On the Multiple Listing Service (MLS).
Most MLS systems allow you to search sold transactions that were purchased with “cash.” So you would simply do a 1 mile radius search from your wholesale deal of all properties that sold during the last 12 months that paid cash.
The MLS will generate a list of properties that meet that specific criteria. Next, you’ll need to contact the owners of record for each of those properties. This is accessed through public record which again, is usually accessible through the MLS.
Once you know who the owners of record are, you will need to contact them and basically say...
“Hi, I noticed that you recently bought an investment property at _________ (address of property they recently bought with cash). I have a contract to purchase a similar property nearby that you may be interested in at ______________ (address of your wholesale deal). Please contact me ASAP to discuss details...”
I have found that I usually can find a cash buyer for my wholesale deal from following this one technique.
My rule of thumb when wholesaling is…Get the deal first, then find the cash buyer...
Most new wholesalers actually do the opposite. They try and build a cash buyer list first, then find a deal second. The fear is – “I can’t get a deal unless I first have a list of buyers.” They end up spending a lot of time finding and talking to cash buyers in an attempt to build a cash buyer list.
The conversation goes like this...
Wholesaler: “Hi, I’m a wholesaler, if I find a good deal will you buy it?”
Cash Buyer: “Sure, call me when you get a good deal.”
How ineffective is that!?
Instead, what I do is first get the good deal, then worry about finding the cash buyer. That way when I contact potential cash buyers, we can have a real conversation about a real deal.
Following the strategy taught in this article, everyone I contact is a real cash buyer that has recently purchased a very similar property. These people are almost always interested in my deal. Time and time again, I have found that this is the fastest and easiest way to wholesale a deal to a cash buyer.
To Your Success,
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