Disclaimer: PropStream does not offer investment advice or profit promises. This article is for educational purposes only. Consult a financial professional before wholesaling real estate.
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Key Takeaways:
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As a wholesaler, you find discounted properties, put them under contract, and sell those contracts to investors for a profit. The longer it takes to assign a contract, the longer it takes to recoup the time you’ve invested. The best way to streamline the process? Find cash buyers.
Cash buyers can help you flip purchase contracts faster and more reliably while serving as a stable source of repeat business. They look to you to find great deals, and you look to them for quick closings and reliable paydays.
But where do you find cash buyers, and how do you keep them as long-term customers? In this article, we’ll cover the best ways to find cash buyers, how to build and nurture lasting relationships with them, and other tips for success.
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Why Cash Buyers Matter in Wholesaling
Cash buyers are the lifeblood of any successful wholesaling business. Here’s why:
Faster closings. Cash buyers don’t have to wait for a lender to underwrite and approve the deal. They may even bypass an appraisal if they’re confident in their own property evaluation.
Fewer financing hiccups. When investors rely on traditional financing, changes to their borrower profile or an appraisal that comes in low can cause the lender to delay or even withhold funding. By contrast, investors who pay with cash don’t depend on lender approval.
Credibility with sellers. Sellers are more likely to sign a purchase contract if they’re confident the deal will go through. A reliable cash buyer pool can help build your reputation among sellers as someone who moves deals fast.
Repeat business. Most cash buyers are investors, and most investors regularly look for property deals. As a result, they can be an excellent source of repeat business, especially if you maintain a strong relationship with them.
Higher return on your time. By working with cash buyers who close quickly, you can earn your return on your work (the assignment fee) faster, letting you hunt down the next deal sooner.
Related: What Should a Wholesale Real Estate Contract Include?
5 Ways to Find Cash Buyers
Now that you know what makes cash buyers so valuable, here’s how to find them:
1. In-Person Networking
Many cash buyers gather at networking events. For example, you likely have a local real estate investor association (REIA) that meets regularly. By showing up to one, you can meet cash buyers in your area seeking property leads.
Introduce yourself to investors and offer your help. By demonstrating your expertise in finding discounted properties, you can win their interest in your wholesaling services.
2. Online Groups and Forums
On top of attending in-person networking events, explore online real estate investing communities and forums. For example, Facebook or LinkedIn may have groups dedicated to investing in your local housing market. Request to join.
From there, you can participate in discussions, offer advice, and build a reputation to attract new wholesaling clients.
3. Cash Buyer Ads
Many cash buyers advertise that they’re actively looking for properties to buy. Though they’re targeting sellers, that doesn’t mean you can’t use this information to your advantage.
For example, pay attention to local bandit signs and classified ads. You’ve likely seen some that say “We Buy Houses” or similar with a phone number listed. Call it and explain that you can source attractive property deals for a fee.
4. Public Property Records
Every county stores public records on property transactions in its jurisdiction, including how property purchases were financed. By searching these records, you can discover owners who paid for their properties in cash.
However, scouring public records can be tedious work, which brings us to our final and best option for finding cash buyers.
5. BEST OPTION: PropStream
The most efficient way to find cash buyers is to PropStream it.
Our database has transaction history details on over 160 million properties nationwide. A pre-built Cash Buyers Lead List can yield an instant list of homes with owners who paid with cash.
You can then stack on other filters to solidify your cash buyer lead list. For example, you can limit your search to homes with owners with a minimum number of properties, such as five. These are more likely to be investors interested in expanding their portfolio.
Building and Nurturing Relationships with Cash Buyers
It’s one thing to find a cash buyer; it’s another to qualify and retain them as a long-term client.
Before you choose to work with a cash buyer, ask them a few questions to gauge how well you’d work together. Here are some example questions to consider:
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In short, determine how serious the cash buyer is and what their buying criteria are.
Then maintain a strong relationship through consistent communication. For example, send a regular market update to stay top of mind and position yourself as an expert. Then, when you have a purchase contract to assign, your cash buyer will be more open to taking on the deal.
Tips for Success
Developing a strong flow of cash buyers for your wholesaling deals takes work and time. However, here are some best practices to accelerate your success:
Always have more buyers than deals. That way, you’re less likely to go through all the work of getting a property under contract only to have the deal fall through because you can’t find a willing buyer, damaging your reputation among sellers.
| Tools like BatchDialer help you reach the most cash buyers in the least amount of time. With BatchDialer, wholesalers can call verified numbers at scale without leaving their workflow. With AI-powered multi-line dialing, phone number health tools, and seamless integration, BatchDialer turns potential buyers into real conversations faster than ever. |
Stay organized with a buyer's list database. This helps you keep track of cash buyer leads, their buyer criteria, and when they’re due to assume another contract. Without a central database, it’s easier to let leads and deals slip through the cracks.
Offer value to keep buyers engaged. Even if a cash buyer isn’t actively looking for a deal, keep nurturing them with market data and other valuable insights. That way, when they’re ready, they’re more likely to choose working with you over other property lead sources.
Sign Up for PropStream to Find Your Next Cash Buyer Lead
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Ready to take your wholesaling business to the next level? Use PropStream to optimize your cash buyer lead generation. Instead of scouring public records or attending networking events, you can get a quality list of cash buyer leads in moments. But that’s not all.
PropStream’s skip tracing features can also give you cash buyer leads’ contact information. From there, you can start a postcard or email marketing campaign directly within PropStream to reach out to your cash buyer leads and pitch your wholesaling services.
