After reading my previous wholesale posts, you should be able to find deals and know that they need to be purchased at deep enough discount that you can sell them to investors who can, in turn, make their own profit from them. Here we’ll assume you have these great deals and you simply don’t have buyers to purchase them.
So how do you find cash buyers?
1. First, it’s important to network at your local REIA meetings. You can find your local real estate investor association meetings at NationalREIA.org. Be sure to attend regularly to get to know your local investors and what they’re looking for. Some like large rehabs, some like smaller, some want properties they can put less into and then hold long term as rentals and they want to purchase those with equity already in them.
2. In most areas, you can find diversified investor meetings on MeetUp.com. Again, attend and network so you become known as the local with wholesale properties.
3. Seek out local Landlord Association meetings. Their attendees are actually doing the business and are often looking for more properties for themselves.
4. Call all the bandit signs you can find and see if any of those investors are interested in your deals. Ask for permission to add their email and phone number to your potential buyer list.
5. Get names, phone numbers and email addresses at every meeting you attend. This is how you make your investor list for mailing. I’m constantly asked where to get a list of potential buyers and sellers. The list can’t be purchased, you make it for yourself. It takes time but you don’t need many names. What you want on the list are quality names – those who are really doing the business – who have the funds, the desire and the ability to buy deals from you. It actually doesn’t take many names to create a great list.
6. If you have great deals, you won’t need to speak with many investors to get them sold. If you talk to six investors and they’re not sold, they’re not deals meaning you’re paying too much to purchase or expecting too much profit when you re-sell.
7. Be pro-active. If there aren’t any good investor meetings near you, start one. This is not an isolated business; you must be networking and part of the investor group to be successful.
8. If you have too many deals for sale, they may not actually be deals. If your properties don’t sell quickly, they’re probably priced to high.
9. Do you have the right investors for your deals? If you’re finding mobile homes, do you have mobile home buyers on your list? If you buy in highly distressed areas, do you have investors who want those deals? Be sure your buyer list is diversified enough to have buyers for any type of deal you come across.
10. Are your deals good? If you really have good deals, investors will make profit when they buy from you and they will be back over and over again. Soon, you won’t be looking for investor buyers, they’ll be seeking you out.
Do you have a buyer list? Are you able to sell quickly? What tips can you add?