If you’re in the business of wholesaling houses to other investors, rehabbers or landlords, there are lots of ways to get them sold fast. I will cover a few of them here, but what is critical to the process, is that you must sell cheap. Investor/rehabber/landlord buyers don’t buy if they are not getting a GREAT deal. So, if you hold out for top dollar on your wholesale deals, you are likely to be very disappointed. In fact if you don’t sell cheap, the following strategies will do you no good, what-so-ever.
So, with the understanding that you’re going to sell cheap, what you need to do is go directly to the active buyers in the area. Most of them are paying cash for properties. Access to cash buyers is important. You can get that access through www.CashBuyerDataFeed.com. It’s the most comprehensive, least expensive, easiest to use, service of it’s kind and you’ll always have a steady stream of the most recent cash buyers everywhere in the USA. I suggest you check it out if you are selling houses wholesale. It’s way more than just a list of buyers. There are powerful tools to help you communicate with them too.
Another simple way to get the word out about your house is to submit the property info at www.iBuyHouses.com. There your property will be exposed to a nationwide network of investor buyers who are hungry for good deals. Because of the way you sell properties, iBuyHouses is an ideal way to get the word out, and it will take you all of 1 minute.
Then there is the Section 8 office in your area. You can walk in and ask for a list of landlords who are participating in the program, and have access to lots of local wholesale buyers right at your finger tips.
You should attend your local Real Estate Investor Association or Club meetings. The room will be full of potential buyers.
When you see a house that is obviously being rehabbed, walk up and say hello. Exchange business cards with another potential buyer, and one who’s obviously active in the business.
Keep your eyes peeled for the “I Buy Houses” signs and ads in your area. You know they’re active buyers who deserve your attention.
The bottom line is… with a properly priced house, a good list of buyers, and a little extra effort, you’ll sell quickly and easily. Then after you’ve been to the bank with you deposit… Go do it again!
Cam
I want to buy listed homes using your transactional funding. If I am buying a home listed with a Realtor using transactional funding, will Realtors allow me to put the house under contract and give myself a time period to find buyers who can close fast with cash? Normally I could only do this with private sellers. I would hate to put a home under contract to buy with a Realtor then not have a “serious” cash buyer. My worry is finding a buyer who will lose interest and back out at the last minute right before we are getting close to the closing date. Should I put a contingency in my purchase agreement that let the listing agent know that my offer is dependent on me finding a buyer in x number of days?
You aren’t going to find any agents who will allow you to place a property under contract knowing that you don’t have the money to close. You can’t tell them that you need to go and find a buyer. An agent works on commission and he/she only gets paid when the deal closes. They aren’t going to spend a bunch of time allowing a “wholesaler” to take a property off the market in order to find someone else who has the cash.
Ideally you want to find high foreclosure areas/zip codes with a lot of inventory and introduce yourself to the cash buyers who are buying multiple properties in those zips. It would be good for you to use a tool like Cam Dunlaps Cash Buyer Data Feed. Once you get them on your list, you can use a Proof Of Funds letter from a Transactional lender and approach the Realtor as if you are going to be the one buying the property yourself. Once you get the deal under contract at a very good wholesale price, you immediately shop the deal to your investor list.
You will normally be provided with a 7 to 10 day inspection period from the Banks which will allow you time to shop the deal to different investors. If no one buys the deal from you, you need to make sure you cancel the deal before your inspection period runs out so that you do not risk losing your deposit.
If one of the buyers on your list decides to buy the deal from you during that 7 to 10 day inspection period, then you get proof of funds from your buyers as well as a signed contract. In addition to this you should collect at least $2000 non refundable EMD so that if the buyer backs out of the deal at the last minute, not only will you have gotten your earnest money back due to the buyer giving you $2000 but you actually made a $1000 profit. That way you can keep playing the game without having to figure out how you are going to get $1000 all over again.
Great Info and Advice Cam!
Thanks
Rodney
I do like the idea of asking for an upfront EMD from the buyer, once you have the 7-10 days time frame for inspection and once the property is under contract. This is a good idea and I will not think twice about using this idea because it makes sense.
Thanks Eurica
Hi cam,
I recently tried the Cash Buyers program it’s great I mailed 4 out just to see, got 1 response a contractor looking for inventory and I put in a post on craigslist using a wholesalers template ,cash buyers looking for property and got a hit on wholesalers that are just starting out and if I can find the buyers for them, they’ ll do all the heavy lifting. I just had another wholesaler looking for cash buyer.
Great post thanks for information.