How to Find Cash Buyers and Why You Need Them
Summary
Why You Need Cash Buyers:
1. They buy ugly houses that you find….and not every house is a showpiece.
2. They can close in 1 to 2 weeks…which is a great option for sellers who need a quick close.
3. For prospecting vacant/distressed properties (not short sales) with a note on door and letter….”I have a buyer for your property. If you are interested in selling please contact me at __”
4. As a marketing option for Listings: “Guaranteed Cash Offer on your home in 24 hours – Quick Close, Fair Price.”
5. Because you can learn from them. There is a reason they have money.
How to Find Cash Buyers:
Go to MeetUp.com and search for local Real Estate Investor Groups.
Introduce yourself this way: “I market to (or occasionally come across) vacant and distressed property owners that look like crap and smell like pee….So if you like those kind of houses, please find me and give me your business card.”
Full transcript
Today, I am convinced that, absolutely, if you want to increase your arsenal as a real estate agent in your ability to get transactions and your ability to have credibility with sellers, you want to have an arsenal of cash buyers in your pocket at all times.
Hi there, it’s Kevin Ward, the founder of YESMasters Real Estate Success Training, helping you get more yeses and more successes in your business and in your life. One of the things that was so frustrating to me when I first started real estate would be an objection that I would get from, especially for-sale-by-owners all the time. In that way, it was, “Well, if you have a buyer, bring them,” or “Do you have a buyer for my house?”
I was taught some BS scripts like, “Well, I don’t know if I have a buyer for your house or not,” when the reality was, I knew I didn’t have a buyer for their house but that was a get-your-foot-in-the-door piece of crap script that we were taught. But I always thought, “You know what? If I could just say … I wish there was a way that I could always say, ‘Yes, I have a buyer.'”
Yet, the reality was, I knew at any given time, if I was prospecting perspective sellers, for-sale-by-owners, or expired listings, and they said, “Do you have a buyer,” I don’t know if I have a buyer for their house or not. What if I could just have a buyer for every one of their houses, that I could say, “Absolutely, I’ve got a buyer for your house,” without it being BS?
I always thought that, and it hit me one day. I don’t know when it hit me or how it hit me, but I was like, “If I had a cash buyer that would buy any property anytime, anywhere, if the price was right, then I could say, ‘Yes,’ I had a buyer for any house.” Then, I found out over years of selling real estate that there were cash buyers out there who made offers on properties all the time, all day, everyday.
I’m like, “Man, I wish I had some of those,” and today, I am convinced that, absolutely, if you want to increase your arsenal as a real estate agent in your ability to get transactions and your ability to have credibility with sellers, you want to have an arsenal of cash buyers in your pocket at all times.
In this video, I want to talk about why you must have cash buyers and how to find and create a pool of ready, willing, and able buyers who are willing to buy any property, anytime, anywhere, and why you need to do that and how to find them. So, first, let’s talk about why you need to have cash buyers, and there are several reasons why having cash buyers is a great thing to do.
One is because they can buy any house, and they can buy ugly houses. Not every house that you list, not every seller has got a pretty house. Some houses are ugly, they’re fixer uppers, they’re dog houses. They just need a lot of work, and those houses are best sold to rehabers or to investors, and those typically are cash buyers, not only because they buy ugly houses but also because cash buyers can close fast. They can close in one to two weeks, sometimes even less.
What’s the benefit of that? Well, because sometimes you have a homeowner or a seller that their highest motivation is, “I need my money, and I need out of it today. I’m not looking to get it for top dollar. I just want my money,” and somebody who can buy it fast is a benefit. Having a cash buyer, or multiple cash buyers, gives you that ability to do that.
Another reason is because when you’re talking to people, if you’re prospecting distressed properties, like distressed sellers or probate listings, if you’re looking at ugly houses, is that you can say, “I have a buyer for your house.” You can say it honestly and with integrity, “I have a buyer for your house. Are you interested in selling?” It also gives you the opportunity to handle the objection, “Do you have a buyer for my house?”
“Well, absolutely. I have multiple buyers, and in fact, I offer to people a guarantee I’ll have an offer on your property in 24 hours, guaranteed. I’m not sure it’s the best buyer for your property, but I definitely have a buyer. So, are you looking for just any buyer that will bring you a good offer on your property, or are you looking for the buyer that will get you the most money for your property, because it’s not the same conversation.”
Whether they’re just looking to get a property sold fast, or they want the best buyer, now I can have a conversation with a for-sale-by-owner or an expired, or any other potential seller who throws that at me and says, “Do you have a buyer for my house?” “Well, yes. Absolutely. I have buyers right now that would be interested in buying your property. I just don’t know if it’s the best buyer for you, so are you interested in selling your property quick, or are you interested in getting top dollar for it? Okay, cool. Because if you’re interested in getting top dollar, that’s a different conversation,” but at least now I have credibility with them and then when you know the right strategy and so forth, it just gives you that leverage to have a credible conversation where they go, “Okay. They answered my question.”
Now, they run out of scripts, the for-sale-by-owner does, and now you can win, get the appointment. So, that matters, and it’s just a great thing that you can use for marketing to properties to say, “Look, you want a cash offer on your property? We buy houses fast, cash offer, within 24 hours. Quick closing, fair price. Now, it’s not going to be a top dollar price, but it’ll be a fair price.” So it gives you another angle for marketing, and my favorite reasons why everybody needs to have a lot of cash buyers is because you should learn from cash buyers because if they’re a cash buyer, that means they have cash. That means they have money.
If they have money, that means they did something to make money, and I want to learn from people that make money. You know what I mean? Like if you find somebody that could go out and buy a house for cash today and then fix it, and then sell it, or buy it, keep it and rent it, if you’ve got somebody that can buy it, afford to buy houses for cash, you should learn from them. They know something about not just how to sell real estate, they know how to own real estate, how to buy it, how to make money with it.
It’s just a great association. I would like to get around more people that have more money and make more money, so it’s just something that’s great. Now, that’s the reasons that you should have cash buyers. It helps you as a real estate agent get better, have more options, have more opportunities, create opportunities to get listings, to get transactions, to help more people in multiple ways.
The next question, the obvious question is, “How do I get cash buyers? I don’t know any cash buyers. What do I do?” I’m going to give you in this video one central core strategy that is the simplest, fastest, and probably the way to get the most buyers like that, and here it is. Go to meetings where real estate investors, cash buyers, show up. Here’s how you do it.
Go to meetup.com, and you can go to meetup.com in almost any market, any city you live in, the United States for sure, and maybe even beyond. Go to meetup.com and look for real estate investor networking groups, real estate rehab groups or you can just type in “real estate” and search for all the meetup groups in your city that have meetups. When you do real estate, you’re going to get real estate rehabers, real estate investors. You’re going to get single family, you’re going to get multi-family. You’re going to get all kinds of stuff, but I’m looking for particularly places where I can go where I know they’re going to have cash buyers.
I like rehaber meetings, investor meetings, and so forth. You go to those meetings. Now, at the meetup groups, it’ll tell you when the next meeting is, how many people have already RSVP’ed that they’re coming. Most of the meetup groups are free, or there’s a small fee to come that helps offset parking or offset refreshments or whatever, but they are a great place to go. You get there, and if you go to a group where there’s going to be 20, 30, or more people there, you’re in a great place.
One, you’re going to learn some stuff. They’ll have somebody come, typically a speaker that’s going to teach on buying real estate, investing in real estate, cashflow real estate, wholesaling real estate, wholesale flipping, fix and flip, all kinds of stuff that you’re going to learn from. But the most important thing is, I’m looking for cash buyers. Here’s how you do it.
Once you get there, now, I’ve got … I’ve found the meetings. I’ve found the real estate investor groups. I go to a meeting, and I get there. Now, the worst thing to do, what most real estate agents do when they show up is, if you get a chance to introduce yourself, “Hi, I’m a realtor. If you need help buying or selling a property, here’s my card. Let me know,” and they’re like, “Yeah, whatever. You’re just another realtor.” You’ve got to have a different message, you’ve got to have a way to position yourself that makes them want to connect with you. So here’s how you do it.
A lot of times at these meetup groups, you’ll go around and everybody will introduce themselves. Just tell everybody your name, where you’re from, what you do. So you have the opportunity to do it, and you say, “Great, introduce yourself. Hi. My name is Kevin Ward. I’m a local real estate agent. However, I occasionally run across, or I’m doing some marketing to some distressed properties, and sometimes some really rundown houses that look like crap and smell the same. If you are interested in those kind of properties and like buying ugly houses, make sure I get your business card before you leave tonight.”
The moment you say that, you are going to have, at the first break, you’re going to have people lining up to give you their business cards. You’ll even be, while you’re sitting there in the meetup group meeting, you’ll literally have somebody tap you on the shoulder. You’ll look, and they’re like, “He wants you to have his card,” and they’re handing you business cards. Whenever they know that you find ugly properties, cash buyers go like, “I want an agent that finds ugly properties.” That’s how you get them.
Don’t talk about you and a traditional real estate pitch, like, “I find ugly houses. If you like ugly houses, let me know.” Then you can have a conversation like, “What margin area are you looking in? What are your … What kind of investing do you do? What kind of cash buys do you do? What’s your price range? What location? What is your sweet spot? What kind of margins are you looking for,” all kinds of questions you can ask once you start a conversation with them, but the best part is, now you can literally walk away from one investor meeting with half a dozen or more real cash buyers who will write offers on properties that you find today.
Now, they’re not going to be fair market value offers. They’re going to be wholesale offers. They’re going to be low ball offers, but sometimes that’s what’s needed. Now, let me just deal with a couple of sometimes fears that agents have and they go like, “Well, what if I get this cash buyer and I don’t have a deal for him, like I don’t have a deal for him in a month or two months or three months? Isn’t he going to be like, think I’m a fraud?” No. He’s not expecting … He’s not waiting for your phone call.
They don’t put all their eggs in the basket and go, “Okay. Now I have an agent. I’ll wait for you to send me deals.” They have their own … They do marketing, they do whatever things they’re doing. They’re going to these investor group meetings. They’re looking for properties all the time, and they’re putting out all the different feelers. You’re just another feeler for them. If you don’t call them with a hot deal, they’re not going to go like, “Well, you’re not for real.”
They weren’t waiting for you to call, so if you don’t call them for two months, or a year, or two years, it doesn’t matter. When you need them, you have them. Are all the cash buyers who put themselves out there legit? Are they going to all buy, make offers on every property? No, so I want to build a portfolio of cash buyers. I want to build a group of cash buyers, that whenever you get a distressed property or you get a super motivated seller that needs to get out quick or an ugly house that I can email all 17 of your cash buyers, or all six of them or whatever, and say, “Hey, I’ve got this … Here’s this property. Not on the MLS yet. It’s ugly, it needs some work. Here’s what its market value is today. Here is how much repair is needed.”
You can send it to them, “Would you like to make an offer? If you would, please email me and we’ll talk.” That is a massively effective way to add horsepower to your business to give you just another way to get buyers, to get sellers, to make deals happen with it. When an opportunity comes, you’re prepared to meet that opportunity because you have buyers in your pocket, all day, every day. If that makes sense, make sure you give the post a thumbs up, you give the video a thumbs up that you like it. Put any comments or questions you have below, share this video with other agents you know that will benefit. If you haven’t subscribed to my channel yet, make sure you do that for more awesome videos to help you get more yeses and more successes in your business and in your life.