33 Ways to Build a Ridiculous Cash Buyers List
Q.What could possibly beat the exhilaration of flipping that sweet wholesale deal of yours for a tidy payday with only, say, an hour or two of your actual time involved?
A.The euphoria of doing so within mere hours of putting it under contract.
Maybe even minutes.
Sound far-fetched? Too good to be true?
It’s all in the wrist list.
As in, building and cultivating your own ridiculously awesome list of hungry cash buyers – waiting, salivating, just hoping to stick a fork in the next juicy deal you’ve cooked up and served on a silver platter.
When it comes to wholesaling houses for quick cash, anyone who’s been at this for at least 37 seconds already gets the raw juice that having a solid list of cash buyers on tap can be for your wholesaling endeavors.
No buyers, no profits – know buyers, know profits.
(lol, see what I did there?)
In this Knowledge Bomb I’m about to drop 33 time-tested, proven cash buyers list-building maneuvers on that pretty little head of yours. I’m talking, a treasure trove of ways you can create that goldmine list of active investors, with capital on hand, and eager to share their buying criteria with you in hopes of snatching up one of the good ones.
This should be the last thing you ever need to read on how to build a cash buyers list.
* suddenly this –> *
This list – basically a mini-course – is the culmination of what we’ve learned of cash buyer-getting thus far in over two and a half decades in the real estate game. You might even want to go ahead and bookmark this for future reference, cause there’s no way you can use all of these ideas at once unless you’re from Hogwarts or a robot from the future.
Use even a fraction of these tactics and you’ll quickly have all the buyers you need.
Deploy half or more of them, and I guarantee you’ll have the biggest, awesomest buyers list in your whole freaking area, hands down.
OK, I can hear you asking it in my mind (outta my head, you sicko!) so let’s go ahead and answer before we dive in:
“Do I really need a ginormous buyers list to win at wholesaling?”
Nah, of course not. But also, it doesn’t exactly hurt either.
Let me explain…
My first few years wholesaling houses (starting back in 2001) I only had like 3 or 4 guys I ever flipped contracts to. They were solid, local players with years of experienced notched on their belts, cash on hand, and the ability to act fast and close quickly if needed. I only needed these 3-4 guys in my corner to close around 40 something deals my first year in the game. Not too shabby.
But also, consider that having a veritable stockpile of cash buyers on tap gives a couple of unique benefits:
First: You have by default a wider net to fit your deals into. More cash buyers = more diverse buying criteria = more opportunity for you to craft a deal from those leads you’re sorting and sifting.
Second: A bigger buyers list can attract even more deals to come your way, because once word hits the street with other investors that you’ve achieved “Buyers List Level: Expert” something interesting happens:
Other investors start bringing you their deals to sell to your buyers.
Think about it, once you get a rep for selling contracts in hours instead of days or weeks, suddenly you become the path of least resistance when their first couple of attempts to work their flaccid little buyers list doesn’t exactly pan out.
So having the biggest, baddest buyers list in town can actually give you more deal-making options, while making you a co-wholesaling magnet, which means more easy money in your pocket. This has happened to us many times and it freaking rocks.
Having said all that, it really doesn’t matter what your personal philosophy for the ‘ideal’ cash buyers list is – the tactics you’ll read below are more than enough to get you there.
How these are organized
Just FYI, rather than try to sort these by some kind of value, I’ve gone with no particular order, except for grouping them into 3 main categories:
- Hi, I’m Awkward! (Networking Tactics)
- Thug Life (Street Tactics)
- The Internets (Web/Tech Tactics)
If a tactic could fit in more than one group, I just picked one.
And hey, I bet you a whole dollar you’ll find more than one clever, outside the box strategy you never would have thought up yourself in here.
Think you can prove me wrong?
OK then, let’s do this.
(1) Local REIA
It may already be painfully obvious, but your local real estate investing association (REIA) is a watering hole for all manner of investor, including rehabbers and landlords you need to be connected with. Go to the meetings! But don’t just randomly collect business cards. Rub shoulders, shake hands, but do more listening than talking, and look for ways to make authentic connections with the players you identify in the room.
Pro Tip: Look for ways you can be more involved than merely being a regular member showing up for meetings. Be more visible by volunteering to help somehow or even teach something. Consider buying an ad in the club newsletter to promote your wholesaling biz, or even becoming a corporate sponsor. OI signed our company up for Gold Sponsorship with our REIA, which gives us primo ad in their newsletter and website, plus a spotlight opportunity at every meeting to stand up and let any cash buyers in the room know we’re the best deal-pushers in town. From this alone, we add a stack of fresh cash buyers to our list every single month.
Pro Tip 2: Contact the REI president and see if he/she would consider your one of your sweet deals to their cash buyer list for a profit cut.
Meetup is an online social networking portal that facilitates offline group meetings in various places around the world. Basically you can find and join common interest groups, like politics, books, gamers, Anime, guys who like to drink beer and watch movies in their garage on Thursday nights, or whatevertheheckelse. Not long ago I was looking for co-wholesale partners and I found them by searching for meet-ups in the area. There were several REI related group, so I joined the meet-ups and posted to their message board, with multiple responses to show for it.
Pro Tip: I even decided to start my own meetup group at a local pizza joint, and it’s been an invaluable network builder for us to run this group, including adding multiple cash buyers to our list on a regular basis. Do definitely give that a try.
(3) Closing Attorney / Title Agent
Think about it, who knows the ‘cash players’ better than the attorneys and title agents closing their deals? And they already have a vested interested in keeping a great thing going with them, so why wouldn’t they want extra brownie points for a warm intro to another awesome client who can help them keep make even more money doing (and closing) great deals?
So next time you’re at your title company’s closing table, just ask them: “Hey, who else do you do closings for that pays cash for houses? Think they might ever be interested in any of the wholesale deals you’ve seen me doing? … Great, would you mind making a friendly introduction please?”
Pro Tip: Title companies can also often sell (or give) you a list of all cash transaction buyers who’ve purchased a certain number of properties in a certain zip, with specific price and date range. Just ask them if they can help you out with this kind of info.
(4) Hard Money Lenders
Keep in mind that not all your buyers need literal cash in the bank – investors who utilize hard money can also be perfectly fine for wholesale deals, so long as you know there’s still a qualifying factor involved. So reach out to any local hard money lender and make a personal connection, then see how they’d feel about introducing you to any of their local investor-borrowers who might be interested in doing more great deals.
Pro Tip: If they can’t/won’t connect you for some reason, you can work around them: In your county’s online public records, look up what properties your local HMLs have liens on, then look up the owners. Ka-pow!
(5) Landlords with Houses for Rent
It’s a no-brainer that landlords who already own performing rentals could be interested in buying more if they like the area and numbers. So reach out to any/all landlords advertising houses for rent and ask if they’re interested possibly acquiring another solid cashflow property. If yes, continue the discussion from there to find out their criteria.
Pro Tip: I highly recommend doing this systematically, so that (i) you’ll be consistent with it and (ii) you’ll hopefully avoid pinging the same landlords over and over. So for example, you could set a weekly task for your virtual assistant to collect any/all new landlord contacts from Zillow, Craigslist, newspaper, etc. and add them to a spreadsheet or database, making sure to eliminate any duplicates and/or known property management companies. Then monthly, have him send a text and/or voice mail blast to everyone new on the list. You can easily send voice and/or text broadcasts with Call Fire. Our current preference is sending group text blasts with Mighty Text Pro (Android only) and direct-to-voicemail messages through Sly Broadcast (Also, we make our message sound like a one-off call they just happen to miss, rather than a group broadcast to the masses)
Pro Tip 2: If a landlord you speak with seems burned out, spin the conversation into asking them if they’d like to solve that problem by selling to you instead. Boom, motivated seller.
(6) Section 8
We’ve all heard of Section 8 housing, the gov’t program some landlords use to get guaranteed rent. But have you ever considered mining Section 8 for cash buyers? Here’s how it works: Local Section 8 offices typically retain a list of ‘approved properties’ for the Section 8 voucher program, including contact information for each landlord.
This list may be readily available just for the asking, so call up the local housing authority and find out. If not, visit your local housing authority and personally meet the rep there. Tell them you’re a local property investor considering housing options for the Section 8 market, but would like to see what kinds of other properties are already available by comparison. One way or another, get the list, the reach out to every landlord on the list as already described. It’s a quick and easy way to find cash buyers and even get a peek into their basic criteria in their investments.
Pro Tip: Socialserve.com and GoSection8.com are a couple of little-known websites where landlords can list Section 8 properties they have for rent along with their contact information. Do a zip code search to pull up all the Section 8 rentals located in your area, and you know what to do from there!
(7) Property Management Companies
Just like closing attorneys and hard money lenders, these guys have direct working relationships with major players, and a vested interest in keeping them happy as a tick on a fat dog. So reach out to any/all reputable property managers and straight up ask them if they’ve got actively buying owners who might be interested in acquiring new cash flow assets. Which of course means more future properties under their management.
Pro Tip: In most areas property managers are legally required to be licensed real estate agents. So if warm fuzzies and more houses to manage aren’t a big enough carrot, why not dangle a little commission in front of them on the first 2-3 properties any of their referrals buy from you? Incentivize, yo.
Love ‘em our hate ‘em, these guys have an unmistakable presence in about every major U.S. city. What’s more, I’ve noticed that they tend to be rehab-centric investors who kinda-sorta-hafta keep churning deals to keep feeding that hungry franchise machine they’ve signed on for. So you should definitely reach out to your local HV folks and add them to your cash buyers list. Just go to their website and you’ll easily find your local franchise owner(s) in a few quick clicks.
(9) Attend Auctions
Visit local property auctions and target the folks bidding and buying the most. Whether private auctions, local trustee / foreclosure auctions, tax deed sales or whatever the heck else, the active bidders here are supremely valuable to you. The specific rules can vary based on the area and scenario, but these guys almost always have to verify having large amounts of “good funds” available at the auction in order to even bid. You want them. So go to these auctions and meet them in person. Use your people skills and rub shoulders with them, but don’t make it weird. They tend to be a jaded bunch, so you might have to go a few times before they’ll even let you talk to them. Have your thoughts organized before an approach, and try pulling just one of them off to the side rather than trying to broadcast en-masse how awesome your wholesale contracts are.
But trust me, it’s worth it. Most investors who buy at auctions are used to making fast decisions on a deal and are only ever used to buying deals from auctions. Once you start pushing good deals their way, they’ll wonder where you’ve been all their life.
Pro Tip: In some areas, the folks bidding at auctions can actually be from a buying or bidding service that works on behalf of investors who don’t want to attend the live auctions themselves. If you find out so, then go online and research properties this company purchased, including who they transferred the sale to. Boom, back door cash buyers.
(10) Self-Directed IRA Gatherings
Hardly anyone ever thinks of this one, but it’s a freaking goldmine. Find local Self-Directed IRA custodians (Entrust, Equity Trust, there are many more) and ask them if they hold investing meetings or “lunch and learns” anywhere in the area. Network the crap out of them. These people have capital (in their SD IRA!) they need to have out there working for them. They’re often interested in real estate, but lack the knowhow or time to actually find deals. So you show up and present yourself as the local real estate investor expert that specializes in finding diamond-in-the-rough property deals. Next thing, you’re their pusher.
Pro Tip: Maybe it’s obvious, maybe it’s not. But in addition to courting these guys as cash buyers, their “lazy IRA money” also works superdy duperdy great as a source of private money for your deals. Yep, a two-fer
CPAs have clients with money. Many CPAs have clients who want to invest said money. And like other professionals already listed here (closing attorneys, hard money lenders, property managers) CPAs also have a vested interested in making their favorite clients crazy happy. So ask any CPA you know (or meet) if they think any of their clients might be interested in investing in some local discounted real estate if it’s a truly smoking deal. From there, you can connect the dots.
Pro Tip: Ask other experienced investors you know around town who their CPA is. Often it’s a CPA who already works with a lot of other local investors. Richer soil to till, amiright?
With over 180,000 members worldwide, BNI is the single largest business networking organization in the world. Last year alone they generated 6.6 million referrals resulting in $8.6 billion dollars of business. It’s one of those organizations with a number of local “chapters” in an area, and any given chapter can only have a single member representing any one business type. So your chapter might have one dentist, one roofer, one landscaper, one mortgage broker, one plumber, one Realtor, one basket weaver, and of course one real estate investor… you.
Besides your actual chapter members being a great group of go-getters to network with (and possibly interested in real estate investments) the real power lies in the extended networks of these people. The underlying agreement is that chapter members will support each other’s business with referrals. So when you know someone needs a dermatologist, you’ll hopefully think to refer Dr. Whitehead from your BNI chapter… and when anyone else in your chapter finds that someone in their world needs something real estate investor related (like access to steeply discounted investment properties, for example) then he’ll refer them to you.
Pro Tip: This works super great for motivated seller referrals too 😉
(13) Other Networking
Basically you should flap your gums about what you do to anyone and everyone, and look for those power networking opportunities to connect with folks who might want what you’ve got to sell. So Chamber of Commerce, Charity Events, Rotary Club Fundraisers… basically anywhere you can position yourself with people and ‘talk shop’.
*TAKES BIG, DEEP BREATHE*
So there you have it. I hereby bequeath thee THIRTY THREE time-tested, proven tactics you can use to get a completely ridiculous cash buyers for your wholesale deals.
All in a day’s work.
So, let me ask you…
Which of these 33 pieces of awesome is your personal favorite?
And assuming you didn’t already know every single one of these before, which is the next one you can’t wait to try?
Oooooooh, can you think of anything not on the list here that I missed?
Please chime in and leave a comment below with your answers and other thoughts. I’d really like to know.