Building a Cash Buyer List

A professional wholesaler does NOT depend on "finding" a buyer to make a profit on a particular property. Instead, he works hard to identify potential buyers before he's ever found a property to sell to them. By networking with investors and rehabbers, he learns who's a cash buyer, what areas and types of properties they're looking for, what their exit strategies might be, what their requirements and pet peeves are, and how fast they can close. He gathers this information and keeps it where he can get to it when he needs it - that is, when he has a deal to sell them. By having a list of potential buyers, and knowing it well, you'll know to whom the property will probably sell before you even get it under contract. At that point, it's simply a matter of calling the right people until you get the answer you want.

Occasionally, matters conspire to put you in a position of having a great deal - but no buyer - despite your best efforts. This is where your real estate education comes into play. If you have the knowledge and resources to get these properties purchased and/or for getting your closing date delayed, you can still make these deals fly.

Tools you might use include a partner or private lender who can come up with the cash to close very quickly. Once you own the property, your exit strategies are no longer limited to a quick flip; you could retail the property or offer it for sale with owner financing. Another strategy might be to negotiate short-term seller financing or a "split funds" deal where you pay part of the purchase price now and part in 90 days. In wholesaling, as in the rest of the real estate business, knowledge is the key to profits.

Happy Investing!


Reprinted from the Real Deal, a monthly newsletter for Real Life Real Estate Investors with permission of Vena Jones-Cox. Get a free 3-month trial subscription by logging onto www.regoddess.com. One per household, please.