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As a real estate investor, you know cash buyers are golden. It is quicker and easier to sell a property for cash than when financing is involved. Especially for deals like wholesaling, it’s critical to have a solid list of cash buyers to make a profit fast.
Benefits of Finding Cash Buyers
Cash buyers offer many benefits. However, the biggest benefit is cash buyers help you make a profit quicker. The close time is swifter with a cash buyer. You don’t have to deal with the process, timeframe or cost of financing a purchase.
The risk with cash buyers is also lower. With traditional financing, a buyer can lose their financing at any point during the qualification process. When your buyer has cash, it’s up to the buyer whether or not they purchase the property. Fewer third parties are involved in the transaction.
Many cash buyers are real estate investors that seek to purchase properties frequently. This means that the buyer is a good future contact. In fact, anytime you work with a new cash buyer, you should add them to your real estate cash buyer’s list.
Start with Your Real Estate Cash Buyer’s List
The best place to start is often the most obvious! Part of a smart real estate investing business plan is to build a buyer’s list. This is your list of qualified buyers to go to first when you have a deal you need to close.
A good buyer’s list classifies the buyers into categories so you’ll know which contacts are potential buyers for specific deals. For example, if you have a property you’ve flipped in a tourist destination, a buyer that invests in vacation rentals would be a perfect contact.
Your buyer’s list should have a group of cash buyers. This is your real estate cash buyer’s list. When you have a deal, like a quick wholesale opportunity, these are the first buyers to contact. Investing in a strong buyer’s list is an effective strategy to make money in real estate investing.
Alternate Ways to Find Cash Buyers
When your real estate cash buyer’s list doesn’t produce a buyer, it’s time to get creative. Cash buyers are out there if you take the time to search for them. Plus, once you find new cash buyers, your real estate cash buyer’s list continues to grow. This makes closing your next deal with cash even easier.
Online Marketing Strategies
The internet is a real estate investors best friend. Your online marketing strategy offers a great opportunity to reach buyers both in your local market and through virtual real estate options.
First, your website is your online office. It serves as a way to generate traffic through web searches and to inform your audience about your expertise and reputation. Social media works to promote your business and find other real estate investors looking to purchase properties for cash.
Craigslist and other online marketplaces or networks also offer a way to find cash buyers. One way to use Craigslist is by looking at properties for rent. When you see several properties for rent by the same person, that property-owner is a potential cash buyer. You may also choose to list the deal you’re trying to close on Craigslist in search of a cash buyer.
Property Auctions
Individuals attending auctions are interested in buying property for cash. Real estate auctions are not only a great way to purchase properties for real estate investment, they’re also a great way to build your real estate cash buyer’s list.
Properties are usually auctioned for two reasons. First, if a property owner doesn’t pay their property taxes, after a specific timeframe the property is auctioned off. Second, if a property owner doesn’t pay their mortgage, the bank can foreclose and auction the property.
Not everyone that attends the auction will enter the winning bid. A door then opens for you to promote your real estate deal to these eager cash buyers. The key is to network during the auction to share your investment opportunity and vet potential cash buyers.
Seek Out Other Real Estate Investors
Real estate investors often buy properties with cash. In order to be successful in real estate, you can’t see other investors only as the competition. Instead, you have to look at other real estate investors as your peers. A solid buyer’s list will include other real estate investors.
Bandit signs are a good source to locate other real estate investors. These are the signs you see that state, “We Buy Houses for Cash”. It says it right on the sign! What better way to find a cash buyer? Call the number on the bandit sign and introduce yourself. These investors work well with wholesale deals and houses for flipping.
Local governments keep a list of recent property transactions and what paperwork was filed with the transaction. You can locate cash buyers by reviewing the list of recently sold properties that did not have a lien filing. This means the property was purchased with cash. These buyers could be real estate investors interested in buying additional properties.
Network
In order to have a real estate investing business that is successful over the long-term, you must network. Your network offers many benefits and one of those benefits is developing relationships with other people in the real estate business that can connect you to the right people. Sometimes the right people are cash buyers for your current deal.
Network opportunities are everywhere from the people you meet at real estate auctions to organized networking events. Now, online networks and real estate clubs are available to expand your reach even more.
Build a varied network of industry professionals, including other investors, lenders, real estate agents, attorneys and more. Also, be a good resource for another person’s network so that you are a trusted peer.
Learn How to Build a Real Estate Cash Buyers List
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