As a real estate wholesaler, having a quality cash buyers list is critical. It can literally be the difference between a contract becoming a payday or turning into a lost deal. It doesn’t matter how many wholesale deals come across your table if you don’t have anyone to buy them.
While building a list of cash buyers can seem intimidating at first, this article will explain how cash buyers work in real estate and why you need them when investing. Then we’ll go over some tips for where to find cash buyers and how to build a list for your business.
How Cash Buyers Work In Real Estate
Sometimes in real estate, property owners are in distress. They may be going through a financial hardship, their property could be in poor condition and unable to qualify for financing by a traditional buyer, or they may just need to sell quickly. Cash buyers will make an offer, and if that offer is accepted, they’ll buy houses at a discount in exchange for a quick, all-cash closing.
Typically, cash buyers make selling your house easier and faster than it would be with a real estate agent and can provide a cash offer in as little as a few days or hours. There are thousands of cash buyers across the country who you may see market online or on signs by the side of the road saying “Properties for Cash” or “Cash Home Buyers.”
Why you need a cash buyers list in real estate
Cash buyers are important in all facets of real estate investing, but they are especially important for a wholesaling business. Wholesaling is when an investor finds and negotiates a discounted all-cash offer for a property and then assigns their interest in the contract to a cash buyer at a slightly higher price.
The wholesaler earns a profit from the difference in pricing between the cash offer and the sale price to the cash buyer. Wholesalers, in particular, need a solid list in order to sell the real estate they have under contract. The more cash buyers they have in their wholesale buyers list, the more likely the property will sell and go to sale quickly.
How to build your own real estate cash buyers list
If you want to build and grow your list for your investing business, you have to start networking with or market to cash buyers. Cash buyers in most cases are experienced real estate investors, but they could be busy professionals, small-business owners, or even successful real estate agents. They don’t necessarily need to have their own disposable money on hand but instead should have the knowledge and connections to be able to purchase real estate quickly and for cash.
In today’s market, with more and more people going online to sell their homes, it’s a good idea to have a website with a landing page for both sellers and prospective cash buyers. This helps capture potential leads and store their information in an efficient way.
Make sure to vet your buyers. Unfortunately, a lot of real estate investors are tire kickers, and asking questions when you meet a potential cash buyer will help you determine whether they are serious as well as what they are looking for. Some questions you can ask include:
What type of properties are you looking for?
Is there a specific neighborhood, zip code, or county you buy in?
How much money do you have available to deploy currently?
What is your investment or buying criteria?
How many properties have you purchased for cash in the past? OR, How long have you been a cash buyer?
How quickly can you typically close?
Where to find cash buyers
A great place to begin looking for cash buyers is by calling the numbers on the signs you see on the side of the road. While some numbers will be for wholesalers, many will be for direct buyers. Another place to look is at your local REIA (real estate investing association). REIA meetings can be a tremendous place to build your list while learning and networking with other investors.
Additionally, you can look online at places like Facebook Marketplace (NASDAQ: FB) or Craigslist, placing your own ad for cash buyers or looking at who is active in these places. Facebook groups and BiggerPockets are also a great way to network with other active investors.
If you have a target market you will be focusing your marketing efforts on, look for a recently completed rehab and search public records to see who the company or investor was. I’ve sold properties simply by looking in public records for real estate investors who are actively investing in that area or recently owned a real estate investment close to mine and then reaching out to them from their website or sending a letter.
Building your cash buyers list takes time. Attending real estate or investing events where people likely have money to buy properties for cash, while establishing a quality lead funnel, will improve how quickly your list is built. Just remember that quality is more important than quantity. It doesn’t matter if you have 100 people in your email list if none of them will actually buy the property you are marketing.
10 Ways To Find Real Estate Cash Buyers in Your Market
The best way to find cash buyers in your market is by using a tool like ListSource! You can also attend foreclosure auctions.
If you’re wholesaling real estate, then you can’t close deals without cash buyers.
But how do you find cash buyers in your market? More importantly, how do you find high-quality cash buyers — people who’ll buy from you not just once, but many times into the future?
(After all, not all cash buyers are created equal)
That’s what we’re going to talk about in this guide — in fact, we’re going to give you 10 tried-and-proven ways to find real estate cash buyers in your market.
Let’s dive in.
1. Use ListSource
ListSource is a database with tons of real estate information. You can search for properties, discover homeowners, generate leads, and target prospects.
And yes, you can even find cash buyers.
Well, essentially you’re going to pull a free and clear list (meaning the owners are 100% free of legal encumbrances like liens or mortgage) for properties that have been purchased in the last 12 months (or 90 days if you’re consistently using this strategy).
Here’s a detailed video on how to do this.
2. Attend Foreclosure Auctions
Who attends foreclosure auctions?
Well, there are certainly some tire kickers around, but the majority of people who attend a foreclosure auction are looking for a home to buy… in cash.
Since foreclosure auctions require that cash be paid for the property within a very short amount of time, most of the people there A) have access to a decent amount of cash and B) are serious enough about finding good deals that they’ve taken time out of their day to attend the auction.
In other words, auctions are full of A+ cash buyers.
So attend local foreclosure auctions, bring a pen and some paper (or your smartphone), and make it your mission to get as many phone numbers and email addresses as possible.
Of course, be courteous about when and how you talk to people — you don’t want to interrupt them when they’re trying to bid on a property.
Something like this should do the trick…
Hey, my name is Tyler and I’ve been finding some great real estate deals in the area. I know you’re busy right now, but is it okay if I get your email address or phone number so I can reach out later with some info about the properties I have?
Then follow up with them, ideally a day or so after the auction, and tell them about properties you currently have under contract.
Craiglist is a popular platform for finding cash buyers.
It’s free, it’s easy to use, and lots of people looking for great real estate deals browse through Craiglist listings.
There are essentially two different strategies you can use to find cash buyers on Craigslist.
The lowest hanging fruit is to post your deals in the “real estate for sale” category. To get as much attention as possible, you’ll want to renew your post every 48 hours until it expires after 30 days — then you can post again if you still haven’t found a cash buyer.
It’s also a good idea to post more generally about your wholesaling business. Here’s an example…
The second way to find cash buyers on Craigslist takes a little more work but can be really effective and give you access to buyers that your competitors are ignoring.
For this tactic, you’ll want to visit the apts / housing category and search for landlords — these people already own real estate properties and so it’s not unlikely that they’re looking for other deals.
Call and tell them what you’re doing, ask if they’re looking for more deals, and see if you can put them on your buyer’s list.
If you get a property management company when you call, tell them what you’re doing and ask if they can put you in touch with the owner.
Most people think of the MLS as being exclusively for selling properties.
But it can also be used to find cash buyers.
If you have a good relationship with a real estate agent in your area (if you don’t, then work on building a few relationships with agents — it’s definitely worth your time), you can ask them to pull a list of all-cash transactions over the last 90 days.
Then get in contact with those buyers, tell them what you’re doing, and ask if you can add them to your buyer’s list.
5. Networking Events
Here’s something that every real estate investor should keep in mind: the better-connected you are in the community — the more people you know — the easier it’s going to be to do deals and find cash buyers.
Since real estate investing is typically done within a specific market, networking can be really powerful.
Attend local meetups or events — try Meetup.com — consistently and you’ll be surprised at how many cash buyers you find organically.
Of course, Covid-19 has made networking more difficult than usual — that’s why it’s also a good idea to network online with Facebook groups and other social media channels.
6. Website SEO Lead Capture
Building a lead-capture website isn’t an overnight strategy for finding cash buyers (unless you run FB and Google ads to it), but it can become a key asset over time.
In fact, this is one of the things Carrot specializes in; helping real estate investors build websites that capture buyer leads organically through Google.
Here, for example, are some lead-gen stats from Tyler’s Carrot site…
And here’s what Tyler’s Carrot site looks like…
We highly recommend giving Carrot a try if you haven’t already.
As for driving cash buyers to your site, considering targeting the following SEO terms…
“Investment properties in [CITY]”
“Real estate deals in [CITY]”
“Cheap homes in [CITY]”
To get your website ranking, you’ll want to include your target keyword in the title tag, meta description, and URL. It’s also a good idea to include your target keyword in the first paragraph of the page.
Then wait 3-6 months and see what happens — SEO takes time.
7. Hard Money Lenders
Hard money lenders might not be the first people you think of for finding cash buyers.
But remember: a cash buyer doesn’t necessarily need to have all the cash on hand in order to buy your real estate deals… they just need to have access to cash.
In other words, your buyers can use hard money lenders to purchase your deals.
What you can do is call hard money lenders, tell them what you’re doing, and ask them to connect you with some of their clients. It’s in their best interest to do so because those clients might turn around and use the hard money lender to buy your deals!
It’s a win-win.
BiggerPockets is easily the largest and most active online community for real estate investors.
It’s a great place to learn new investing strategies, network with other experts, and even find cash buyers in your area (or heck, out-of-state cash buyers if the deal is really sweet).
If you don’t have an account, we highly recommend creating one.
Then visit their forums and either create a post about how you’re looking for cash buyers or engage with someone else’s post. At the very least, you’ll get some helpful and specific advice on how to find cash buyers in your area from people who know what they’re talking about!
9. Search Google
We already talked about capturing leads through SEO in tip number 6.
But that’s something you should be doing on the seller side as well as the buyer side.
In fact, many real estate investors in your market who are looking for deals have websites that are ranking in Google for specific keyword terms in an effort to attract motivated sellers.
You can easily find these investors by typing in something like “sell my house fast in [CITY]”.
Now to be fair, a good chunk of these businesses will exclusively be wholesalers, in which case there’s not much benefit in reaching out to them. But others — even if they do some wholesaling — will be buy-and-hold investors or house flippers.
The only way to find out is by giving them a call, introducing yourself, and asking if they have any interest in joining your buyer’s list.
You might make some of your competitors angry by doing this, but that’s no skin off your back… it’s just a part of the game.
And who knows? You might find a few awesome buyers that support your business for years to come.
10. Newspaper/Radio/Billboard Ads
Display advertising is a great way to improve brand awareness.
And the more that you improve brand awareness, the more people who will think of you when they want to find a good real estate deal.
So consider paying for newspaper, radio, or billboard ads in your market.
To get the most bang for your buck, you can structure this ad to attract both sellers and buyers. Here’s an example…
Want to sell your house fast for a fair cash price? We can help.
Want to buy investment homes for a killer deal? Give us a call.
Also, consider using a unique phone number so you know which leads are coming through from your advertisements — this will help you measure the ROI of the ads.
But don’t discount the value of brand awareness — when people in the community know about your business, it’s much easier to consistently find sellers and buyers.
We’ve covered just about every tried-and-true strategy there is for finding cash buyers.
There’s always room for creativity, of course.
But ultimately, it comes down to action.
You’ve got to pull buyers lists, call people, attend foreclosures, post on Craigslist, etc.