I am a new enthusiastic and excited Beginner, I just finished my real estate training yesterday.
I understand the number one first step is for me to build a cash buyers list. How should I approach the contact when I call or email? I know I also understand I need to find out what they are looking,
I am interested in doing fast cash deals, as my first deal experience where should I start to begin building my confidence
There’s more than one way to start. I don’t think worrying about finding a buyer is your first priority.
Your first priority is finding a deal. If you don’t already know what a deal looks like, you need to do some more studying. Meantime, buyers are a dime-a-dozen.
I realize that some gurus tell you to find cash buyers who’ll tell you what a “good deal” is to them.
However, they all have different ideas of what an acceptable deal ‘is.’
Some are fine with 15% discounts. Others need to be a 70% of ARV less repairs. Others are at 80% less repairs. Me? 90% of ARV, period, no repairs. However, I never pay cash, and I only pay referral fees, not assignment fees, and never split profits.
So, you’re not gonna get consistent answers from cash buyers as to what is a deal to them.
Meanwhile, once you’ve found an actual deal, advertise it. Put bandit signs on the front lawn, and at every major intersection within a mile or two of the house.
Advertise on craigslist. Be sure to mention the discounted equity, the terms of the sale, etc. As buyers call on your ads, you’ll naturally build a buyer’s list.
Meantime, you already know what they want to buy. They called on your ad. You just want to know how fast they can close and/maybe where their money is coming from.
You don’t have time to deal with “cash” investors, who are going to a bank for money. Pffft.
You’ll have your deal sold within days. Or you’ll know why it wasn’t a deal, from the buyer’s feedback. Then you can either renegotiate or adjust your buying/flipping criteria.
Meantime, trying to find that one buyer a deal, is unlikely, compared to finding ten buyers for that one deal.
So, go first find a deal. The rest will come naturally.
To me, it’s just all fear-based bizzy-work finding cash buyers, before actually having a cash deal to offer.
FWIW
Somehow agree and somehow don’t.
A lot of REI I work with, start out looking both for buyer an seller leads and it’s not a bad thing if you have a few potential buyers in scope when you close your first deals.
I guess your question was how to find buyers. One way some of our clients use is going to craigslist and looking for properties that looks like they are coming from investors. This could be landlords, people selling rehabbed homes or the likes.
You can start a conversation with these people just by asking if the house is still available and if they are the owner/investor or an agent.
If it’s an investor, you already have a conversation going, so you can ask them what type of deal they are looking for and potentially if it would be okay including them on your mailing list when you have some great offers available.
Kind Regards
Mads