What is a cash buyer’s list? It is a database of real estate investors, typically rehabbers that have the capital or have access to private funding to purchase properties without conventional financing. They do not need to get qualified for financing to close a deal. They can close quickly once title work is done. Your Cash Buyer list is the lifeblood of your real estate business and is critical to your success in "Assignment of Contracts" & "Quick Flipping". Without Cash buyers…you are not in business!
Here are some effective examples of networking and marketing strategies to start building your cash buyer list:
Gold Mine Ads
"Three Bedroom, 2 Bath, Needs Work, Must Sell!" Gold mine ads are magnets for rehabbers and investors. Keep the ad simple and to the point. Advertise in free or cheap publications such as Craigslist.com or a local shopper saver publication. Rehabbers WILL call on these ads; your phone might ring off the hook! Keep a list of questions to ask your prospective Cash Buyer by your phone or on your computer.
Call Bandit Signs
Bandit signs are those bold signs you will see posted at street intersections, or posted in a property’s front yard. They might say something like "I Buy Houses Cash". Call on these signs not to inquire about the property, but to prospect the buyer to see of they are a rehabber / investor. Introduce yourself as a wholesaler; any experienced investor will know what that means.
Attend REIA meetings
Real Estate Investor Association is one of the largest networks in the nation for real estate investors. Visit their website to search for a local chapter in your area www.REIA.org. Network with people in the industry. Word of mouth is a powerful form of advertising! Pass out your business cards and ask for referrals. Get the word out!
Attend foreclosure auctions in your area. Hand out your business cards to investors that are actively bidding. This circle of investors can be a very tight knit circle that you will need to get an "in" to be acknowledged. If you show up on a regular basis and be persistent the chances will be more likely that you get that "in". Word of advise, don’t bid on anything until you have a lot of experience in this highly competitive arena.
Call on "For Rent" classified ads and signs. Craig’s list is a great resource for finding other investors. It’s free advertising and more and more people are using it as a real estate resource that said, there could also be a ton of crap to sift through. If you visit craigslist.com on a regular basis you will quickly figure out which postings are realtors, brokers and crap.
Call "For Sale" Ads
While you are browsing through the classified ads, craigslist.com etc. Notice if there are ads by the same seller for sale by owner. If you find multiple houses being sold by the same person/company most likely they are an investor. It’s not always FISBOs, but a realtor could also represent an investor if they deal in more inventories.
Visit a Job Site: If you see a rehab project in progress, stop and talk to the project manager, or the sub-contractors. Ask if the owner of the property is an investor / rehabber. If you can get a name, Great! If not leave your business card. Hint: If there is a permit posted the investor or the company name should be listed on the permit.
Hard Money / Private Lenders
Investors work with hard money and private lenders as an alternative to conventional bank loans. Contact a hard money or private lender to network, ask if they would be willing to hand your business card to their clients and refer you to them.
MLS Search for Cash Buyers
Refine your search in the MLS to "Cash Only" you can track if the property was purchased with cash or a conventional loan. If the property was purchased with cash, the buyer might be an investor looking to add to their portfolio. Contact the buyers and ask if they are interested in acquiring more investments properties. If you don’t have access to the MLS, a Title company can also pull these records for you. There are also real estate investor software programs that give you access to records.