Hey Investors. It’s Cody back with you again bringing you more amazing tips and strategies to light a fire under your business and take you to the next level.
What’s the one ingredient that wholesalers are always looking for? That is, in addition to a bunch of houses to flip… if you said cash buyers, you’d be 100% right! You should constantly be in buyer-list-building mode. The bigger your list grows, the quicker you’ll be turning deals, and the bigger your profit margin will grow.
That’s what this post is all about. I want to teach you the basics of building a cash buyer’s list – and how to do it no matter where you are in your investing game, and no matter how big or small your budget might happen to be.
If you follow these 8 tips, you too, can build your buyer database so you can start earning quickly by wholesaling houses.
Hang on – here we go!
List Building Tip #1
For our first tip, you can turn to your old online friend, Google.
Search your local area for a “We Buy Houses” company. When you spot the individuals who’re advertising or appearing at the top of the search engines in your state, check out their sites. Give them a call and see if they work with other investors and if it would be okay to call them when you run across any good deals.
List Building Tip #2
Bandit signs are another great way to locate more cash buyers. What I like to do is put 5 to 10 signs in areas where I like to buy discounted properties.
My signs say:
Investor Special in the Area
Then I place my phone number at the bottom of the sign.
I get a ton of phone calls from these signs. I just inform them that all my properties are currently sold, but that I consistently get new ones from all the leads I generate every single week. Then I ask them if I can add them to my buyer’s database and they all agree.
If you really want to do this strategy on a budget, you can use handwritten signs on poster paper. People love the “garage-sale” mentality of these signs. It makes them feel like they’re getting a bargain deal from a person and not a company.
These little signs have big power to generate consistent cash buyers for you.
List Building Tip #3
Think about rental properties. This is a great source to finding cash buyers and it’s super simple.
Locate different rental properties in your area and reach out to them via email or phone. Your goal is not to connect with a Realtor or the property manager… you want to find the rental property owner. These individuals are often looking to invest in and purchase additional properties. Or they may be tired of holding their current properties and are ready and willing to sell them to you at a discount. (That’s a real homerun!)
List Building Tip #4
No matter where you are in the investing game, anybody can follow this tip…
Ask your investor-friendly real estate agent to pull a list of all the properties in your target area that have sold within the past 90 days – and the MLS shows that it was a cash sale.
The next step is to check tax records to see if the taxable mailing address of the property is different than the physical mailing address. If it is, chances are that the property is an investment property.
Send the owner of record a letter or a postcard (to their taxable mailing address) explaining that you also have access to other deeply discounted properties in the same area and ask them to contact you. When they do, you can add them to you cash buyer’s database.
List Building Tip #5
Here’s another easy one. You can locate cash buyers by placing newspaper ads (or even online classified ads). The ad can read:
Invest in foreclosures or discounted properties.
I find, you fund. We split big profits.
You’ll be amazed how effective this strategy can be. But note, you never want to make specific promises in terms of return on investment.
List Building Tip #6
Speaking of foreclosures, here’s a tip that has to do with them…
Go to a local foreclosure auction and find the buyers who buy the most properties. In many cases, these buyers are acting as a bidding service. They simply bid and then receive the trustee’s deed or the foreclosure deed, or the quitclaim, and hand it over to the actual real cash back-end buyer who they bid for.
What I like to do is find out the legal entity of the bidding services, and then track inside the tax records who they are quitclaiming and selling the properties over to. I look up the registered agent of the real cash buyer’s LLC, and then I send them a letter or a postcard telling them that I can get them more deeply discounted properties. When they call, I add them to my cash buyer’s database.
List Building Tip #7
When first getting started, most new investors begin networking and attend the meetings of their local real estate investing association. When networking, check to see if the main REIA has any subgroups that are focused on either fix & flips or buy & holds.
Start networking with those people because they are your ready-and-willing cash buyers.
List Building Tip #8
Many people don’t realize that the government allows you to use money inside of your IRA to buy and sell real estate tax-free. It’s known as a Self-Directing IRA.
There are companies out there called “custodians” that periodically hold local lunch-and-learns. These events are a great place to go and network with people who have lazy IRAs. You just position yourself as the real estate expert and they can be your cash buyers.
8 Is Great
These 8 list-building tips should get you revved up and ready to roll. Little or no cash outlay involved, and yet they have the potential to put money in your pocket on a regular basis. Now have it ‘em
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