If you have ever done wholesale assignments you know how important it is to find buyers who are serious and ready to buy as soon as you have properties under contract. Sadly, the biggest challenge that most wholesalers face is locating potential cash buyers. How do you avoid ending up with “Dead stock” due to lack of potential cash buyers? Here are some suggestions to get you started.
It is said that when you feed your network it will automatically feed you. This has never been any truer than in the real estate arena. You have to start building a network with key people in the real estate industry. Network with real estate agents, mortgage brokers, insurance agents etc and ensure word goes out of what you do. Truth is, if you are able to refer the people on your network some business, they will have no qualms referring business to you as well. Say for instance you have a seller that you cannot work with since they want retail price, why not refer such a seller to a realtor to have their property listed? By the same token, you can also work out how you can pay a mortgage broker or realtor who works with an investor looking to purchase in bulk.
Contact title companies
Most wholesalers do not know this but title companies can be a very great source of valuable leads. There is some title companies that even sell a list of potential leads at a very low cost compared to what you stand to gain once you get valuable leads. You can always find a list of potential investor buyers who have quick access to cash and have no problem closing a deal quickly. Start building rapport with the local title companies, and once you get a list, you can build friendship by sending them free reports, free CDs, or DVDs etc. in order to gain trust by you being the expert.
Contact the “We buy houses advertisements”
Most certainly you have come across these ads in your local area which should show you that there are so many real estate investors out there who are looking to bag a good deal as well. Take your time to call print ads, signs, and online advertisements and let all of them know that you have the best deals in town. When talking to them, avoid talking about how nice the house looks or how nice it will look after some rehabbing. You should know that these are investors just like you and all they are really interested in knowing is how much is in it for them. Go straight to the point and talk about the estimated profit and repair-cost, after-repair cost, and what you want for the property in question. If they decline your offer, ask them what they are really interested in on the discounts and the types of houses they want, and then go out there and find them a customized deal that meets their needs.
These are just few of the many ways you can find serious buyers when wholesaling. Remember that it all boils down not to the number of people on your list but to the active investors who are ready to seal a deal.