Serious investors need to find cash buyers. Why? Let’s say you hustled and got a house under contract. You ran the numbers and figured you could profit $10,000 or more on this one property! You’re excited, nervous, and ready to finish the deal.
But what now?
After all, having a house under contract isn’t enough. You also need someone on the other side willing to pay you cash for that property. And you can’t just have one buyer — you need a whole list of people willing to buy the properties you put under contract if you’re to turn your side hustle into a successful, growing business.
(One buyer probably won’t want to buy all of your properties)
And while finding cash buyers is typically easier than finding motivated sellers, it still takes some work.
To help, here are some tips you can use to find buyers, build a trusting, long-term relationship with them, and get them to purchase your deals in no time.
What is a Cash Buyer?
A cash buyer is an individual or entity (such as an LLC formed by a group of real estate investors) with the money to purchase a home outright without financing.
An actual cash home buyer will check these boxes:
- Have proof of funds
- A track record of successfully purchasing and flipping properties
- Authentic positive reviews and testimonials
- Willingness and ability to provide seller and professional references
A cash buyer offer will most likely land between low and high offers in the multiple offer situation. Experienced investors typically have similar pricing calculations.
Offers may not be the highest because investors know how vital an agreement is and don’t want to make false promises or fail to deliver.
Many sellers are looking to sell to a cash home buyer because they need to sell quickly and easily.
8 Ways to Find Cash Buyers
- Post on Craigslist
- Utilize Facebook groups
- Call real estate agents
- Go to property auctions
- Find the rental companies
- Combine SEO with a Cash Buyer website
- Get a list of absentee owners
- Search On Google
1. Post On Craigslist (Best Option for a Deal Under Contract Right Now)
Craiglist is a great place for finding motivated sellers and cash buyers (plus it’s free). By posting a few simple ads every day in your area of operation, you can collect buyer’s leads in no time.
Because remember, the cash buyers you’re looking for are probably already looking for properties to buy, and Craigslist is one place that they’re going to look. If they see your ad, they’ll likely reach out to you and you can add them to your buyer’s list.
It’s a free and easy way to grow your buyer’s list. What’s not to like?
2. Utilizing Facebook Groups
Facebook can a great place for finding local cash buyers. There are many local real estate Facebook groups that you can tap into.
Here’s an example of a local group.
Active groups are always posting their deals. Simply post within the group… “who’s dealing in [market city] area?”
Then wait to see who you can start building relationships with.
3. Call Real Estate Agents
Real estate agents usually have their fingers on the pulse of their market. They know how the housing market is doing, they are typically friendly, and they know tons of different people with different real estate interests — from first-time homebuyers to million-dollar cash buyers.
And that’s exactly why they are such a great resource for you when you’re trying to build your buyer’s list.
Make a list of 10 real estate agents in your area, call them, introduce yourself and what you’re doing, and ask them if they know anyone who might be interested in purchasing your properties.
You might be surprised at just how many names you get (heck! Some real estate agents are also investors looking for good deals, so you might even get some buyers that way).
4. Go To Property Auctions
Property auctions give real estate investors an opportunity to buy properties cheaply. But that might not be the only reason you want to attend these events — you can also use property auctions to meet cash buyers in your area.
After all, the only people who will go to the auction in the first place are people with enough cash to actually purchase a discounted property (i.e. the exact people who are perfect for your buyer’s list).
You can find the place and time of property auctions on your local government website and in the newspaper. When you attend, bring some business cards, mingle with the crowd, and allow relationships to form naturally.
When someone inevitably asks, “What do you do?” that’s the perfect segue into explaining your business and offering to add them to your buyer’s list.
5. Find The Rental Companies
One great way to find cash buyers with deep pockets in your market is to look for the big buy-and-hold companies, the companies with lots of rentals in your area.
Most of these companies are constantly looking to expand their rental portfolio and continue growing. More than likely, they would be open to you sending them deals.
The best way to find these companies is to search online for rentals, see who owns them, and look for the common denominator companies.
You can also take a drive and look for signs advertising rentals and then call those companies to see if they’d be interested in being added to your list.
6. Use SEO to Optimize Your Cash Buyers Website
At Carrot, we talk a lot about using SEO to find motivated sellers. By targeting phrases like “Sell my house fast for cash”, you can passively drive traffic to your website and convert those leads into deals.
Well, you can do the exact same thing with your buyer’s list.
You can build a landing page, optimize it for the keyword phrase you’re targeting — in this case, something like “buy investment properties in [market city]” would do the trick — and start collecting buyer leads.
You can get a Carrot site if you want to get your page ranking even faster — we optimize the tech stack for you :-)
7. Get a List Of Absentee Owners With Multiple Properties
Absentee owners are owners of properties who aren’t living in the property that they own. Sometimes this is because they aren’t doing anything with the property, waiting to sell, or because it’s a piece of junk.
But sometimes, people are absentee owners because they are landlords. And landlords are often looking to expand their rental portfolio as well. They just need access to cheap properties… which you can give them.
Usually, you can get a list of absentee owners from your local title company. Focus your attention on the absentee owners with multiple properties — those are the ambitious cash-buying real estate investors you’re looking for. The ones that, if you contact them, won’t have any problem with you adding them to your email list.
8. Search On Google
It might seem like an obvious course of action to search on Google for cash buyers. So do it! Most cash buyers want to be found by motivated sellers, which you can use to your advantage.
By searching in Google for “Sell my house now for cash in [market city]”, you can find the cash buyers with the biggest online presence in your market — some of those results will be wholesalers like yourself, but some of them won’t.
Contact the companies and investors you find online and tell them what you’re doing. Then ask if they’d like to be added to your email list. If they’re trying to expand their investment portfolio, they have no reason to say “no.”
Note: It can be enticing to click on a Google Ad. BUT… costing the investor money per click. Don’t reach out to investors through ads. Not a good way to build a relationship.
If your business succeeds, you must have a list of high-quality cash buyers. You need access to people who trust you and are willing to buy your properties.
And you can use the above 8 ways to build a cash buyers list. We hope this helps you build a successful wholesaling business.
Let us know how it goes!