Every wholesaling business needs access to a list of cash buyers.
These investors make running your business possible. When you find a deal, they are ready and willing to purchase that property very quickly.
Or at least, that’s how it’s supposed to work.
But as you’ve probably found, not all buyers are created equal.
For instance, you can have a list of just 10 top-shelf buyers who buy homes from you over and over again… but you could also have a list of 100 buyers who almost never purchase homes from you.
Finding quality cash buyers is key.
But what makes a cash buyer “high quality”?
Here are a few criteria…
- They have easy access to cash.
- They will buy properties sight unseen.
We’re not saying that you shouldn’t work with any buyers that need funding or like to visit properties in person… but the best buyers for your business are going to have easy access to large amounts of cash so that finances aren’t a problem and they’re going to understand their market and their investment business model so well that they’re willing to buy properties sight unseen.
How do you find these buyers?
Here’s a 3-step trick!
1. Find Live Foreclosure Auctions
Live foreclosure auctions might be the single best place to find top-shelf cash buyers.
Think about it. People who attend these auctions are looking for deals, they have immediate access to cash (they have to pay immediately after they win an auction), and they’re willing to buy homes sight unseen (since they won’t be able to see the inside of the home before they bid on it).
In other words, if someone is buying properties at foreclosure auctions, then they probably meet the criteria for being a top-shelf buyer!
2. Attend The Auctions & Get Contact Information
The next step is to attend the auction.
But you’ll want to get there a little bit early so you actually have time to talk with buyers and get their contact information without bothering them during the auction.
You can say something as simple as, “Hey, I’m a new investor here and we’re really ramping up our marketing to find leads. I’d love to send you over deals that fit your budget and buying criteria. I know the auction is about to start but could I just get your email address and phone number and then I can follow up with you about it later?”
You can also talk with people after the auction or even during the auction if they don’t seem occupied with bidding on the current property. Just be aware of what’s going on and try not to bother people while they’re involved in the auction.
Your goal is to get as much contact information from as many buyers as possible. You can even take notes on who buys what types of properties and how much they spend — this will give you some cues as to who the really serious buyers are.
3. Follow Up
The final step is to follow-up with these cash buyers. You can ask them for more information about the types of properties that they’re wanting to purchase and about their buying criteria.
You can also ask them about when they’re wanting to buy a new deal.
Then you can find deals, send ’em to your new list of top-shelf buyers, and close much faster.
You might only find a few of these cash buyers every time that you go to an auction, but imagine having 30-50 of these top-shelf buyers on your list?
How much more smoothly would your wholesaling process go if that were the case?
Remember, quality over quantity!