Over the past 3 weeks we’ve been getting a ton of emails from our readers and newsletter subscribers (if you haven’t subscribed… fill in the box at the top of the page… IT’S FREE!). A bunch of them have been regarding our property management software reviews … and several have been on specific real estate investing topics.
But… one question came out that to me that really never occurred to me to write an article about. Not that it isn’t important to real estate investing… actually it’s one of the most important things a real estate wholesaler should know…
… but, I thought that all of the “gurus” out there have already taught it to everyone… but I found out from this reader that in all of the seminars and home study courses he’s bought… none of them was able to lay it all out as simple as I did for him.
Wow… quite a compliment.
Anyhow, here’s the question from our reader… and my answer follows.
(Hey… if you are struggling in real estate investing… I can guarantee you have questions. Shoot them my way. Best of all… it’s free. I have this site up to help new and struggling investors… not to pry you away from your wallet. So, shoot me an email anytime!)
Here we go…
“The number one thing I need to know is HOW TO FIND CASH BUYERS. I have had to walk away from deals because I do not have a buyers list. Even now.
So if you can address this simply as well as step by step, I would appreciate it. Also I would love to read real life stories on how people financed their first deal ever. ”
- Gary B.
And our answer to Gary… and YOU.
I apologize for not getting back to you sooner. I’ve been slammed w/ email.
That’s a great question… w/o cash buyers it’s pretty damn tough to be a wholesaler.
There are a ton of ways to get cash buyers… you just need to think about it a little differently.
Who are the cash buyers?
Before you can find how to find them… you need to know where they are and what their
Here are some people who are cash buyers:
- rental property buyers
- other wholesalers
- home buyers w/ cash (not very common)
Of course, those are all obvious and I’m sure that isn’t something you don’t already
Now, where do these people hang out and/or look for their properties?
- real estate investment clubs (great place. Go to the meetings to network, trade cards, and get to know what these investors are looking for. Take a note pad and write down everything… including their email/fax/phone.)
- newspapers: a ton of buyers look in newspapers to buy properties. Place an ad for a couple weeks in your local paper saying something like:
“Handyman Special – 40% below market value
(name the area) phone number blah blah blah”
Place this ad even if you don’t have a property to sell yet. Then, sit back and wait for the calls…
…tell people that the property already sold… but you have new below market value properties every week.
Then ask if they would like to be placed on your priority buyers list (the serious ones will), and write down the types of properties they are looking for, the areas of town, and all of their contact info (email, phone, fax).
After a couple weeks you’ll have a good little list going.
Do this as many times as you’d like.
- People search online for properties. Build a simple website that explains that your company has a steady stream of properties at 20-60% below market value.Add a sign up form on there where people can put in their name and email address to be notified of new properties. (I use a company called Aweber for my sign up form and autoresponder.)Put this website on all of your business cards (here’s a site you can get 250 free cards, check it out), bandit signs, stationary, etc. People will sign up… it might not be a ton of people… but over time you’ll have some extra possible buyers.
- www.rehablist.com – this site is a national database of properties that rehabbers check often and buy properties.I think there is monthly fee to post properties on there… but if there are a bunch of investors who buy in your area on the site… it’s worth it. Go there, give rehablist.com a call and ask them the amount of searches for properties in your area.
If it’s a decent amount… try listing your next property on there in addition to using your other methods of finding buyers.
- You know those bright yellow “We Buy Houses” bandit signs? Those people are buyers! Write down the phone number of every sign you see and tell them that you come across a steady stream of properties between 20-60% below market value and you want to know if they’d be interested in receiving a notification when new properties come up.First, ask them what their buying criteria is… (write everything down), and then ask them that if they have properties that meet these criteria, can you send them an email/fax/phone call about the property. 99% will say yes.The ones who don’t aren’t serious.
- Browse the newspapers and look for “We Buy Houses” or “Cash for Houses” ads (or any other ad that you can tell is an investor) write the phone numbers of all of them down… call each and every one… and do the same thing as in the paragraph above.You’ll get more potential buyers.
- Look in Craigslist for classified ads in your area placed by investors.Do the same as above.
- Place an ad in Craigslist saying “Fixer Upper – 60% below market value… etc.” Everyone who calls/emails… tell them the property already sold… then go through the whole thing of asking them what types of properties they are looking for… and get their info.
Wow… I can go on and on.
Basically, get creative and go where the buyers are.
Remember, other investors are your friends. They aren’t competitors. Even other wholesalers are friends.
If you can’t find a buyer for a property (once you build your list for a while with the methods above), call all of the wholesalers you know and offer to cut them in on the deal if they can get a buyer. Even give them most of the profit…
…some profit is better than none.
The thing that most people don’t get in REI is that REI is a business… not a hobby.
A business requires marketing… hobbies don’t.
Without marketing to find customers (your customers are both buyers and sellers)… you have no business and it dies pretty quickly.
Whether we believe it or not… we’re not in the real estate investing business. We are in the MARKETING BUSINESS… and just happen to be involved in real estate.
When you look at it that way… that you are in the Marketing Business… not the real estate investing business…
…you’ll look at things a bit differently.
Then, spending a hundred bucks for a classified ad, or $60 for business cards, or placing a few bandit signs up makes sense. It makes BUSINESS SENSE.
If you focus mostly on the real estate… you’ll likely fail. If you focus on knowing everything possible about real estate and how to structure a deal… but don’t treat it like a true business… you’ll fail.
Focus on honing your marketing to both get seller leads and gather buyers… and you’ll
be on your way in no time.
- contact every investor in your area and get their buying criteria and contact info
- place an ad or two… and collect people’s buying criteria and contact info
- get out of your house at least 2-3 times a week to network w/ people.
And… as a wholesaler you want to be able to close on a property yourself if you can’t
find a buyer right away… and it’s a great deal.
That’s another email though…
I hope this helped. Is it step by step enough?
If not, let me know.
A great resource for this (that goes over everything I just said… in more detail… actual examples of the ads that people are using that are working… and goes over the entire process of wholesaling from A-Z is an ebook called “Flip Your Way to Financial-Freedom“.
We have a link on our blog where you can sign up for his newsletter (great content in his newsletter) and/or buy the ebook (in my opinion its the best bang for the buck for down and dirty… no fluff step-by-step wholesaling info.
He really lays it out saying… “this is what you do first… use this ad, this is what you do second… use this ad and do this… this… this… etc. It also comes w/ the actual forms he uses and all of the resources he actually uses in his wholesaling biz).
I think it’s only like $49… well worth it if you ask me. And, I’m pretty positive that he has a moneyback guarantee…. so if you don’t like it… return it. (if you are an action taker… you won’t want to return it. If you tend to think the ebook will be your ticket to success… you’re wrong. You’re your own ticket to success… the ebook is simply your roadmap.
It can truly explain it more in-depth and better than I can over the email.
Check it out. But in the meantime, don’t hesitate to email me anytime. I’m here for ya man!
The only thing his ebook doesn’t do… is get you to get out there and put to action what you’ve learned. Which is why 97% of people fail. They are trapped in the rut of thinking that they have to know everything before they can start.
THIS IS CANCER TO YOUR SUCCESS.
Those who think they need to know everything are doomed to mediocrity. Those who put to use what they already know, are eventually destined for success.
I hope I helped a bit.