When you want to sell a house, most offers are made in credit or mortgages. And although those types of offers are predominant, in general, it is quite normal for a percentage of all offers to be in cash.
The process can change when selling homes en bloc, as it is unlikely to receive a cash offer when selling several homes simultaneously because the money required for the purchase is too high.
How do you find wholesale cash buyers?
Although getting cash buyers for wholesale homes can be tricky, it is not impossible either. You need to follow certain steps and strategies.
Go to Real Estate Auctions
Auctions are one of the meeting points for potential buyers who have cash at their disposal. Due to the ease of this type of transaction, they are the most used payment method at auctions.
Thus, the vast majority of potential buyers who attend the auction are usually people who not only have enough money to go to an auction but probably also have this money in cash.
After the auction, many buyers are left with the need to purchase the real estate because, ultimately, the sale belongs to whoever makes the best offer.
An excellent tactic is to show up at these types of auctions and especially once the auction is over since many buyers will have lost the auction. They will still have the money to buy.
You can give them a card with your information and present them with the advantages of your real estate and special agreements in case they wish to buy your properties with cash.
Attend events where experts in the field go
As with auctions, in this type of event, you find people involved in real estate. Usually, these are conventions, expos, meetings of the Real Estate Investors Association (REIA), etc.; there are several events where you can find many people involved in this sector.
On this occasion, unlike the auctions, they will not be attending to make purchases but only to keep up to date or get information. Even so, by contacting them, you could find a good cash business opportunity.
Even if they don’t plan to buy in bulk soon, they may know someone planning a wholesale purchase and could act as an intermediary or put you in direct contact with an interested buyer.
It will also serve as an opportunity to make yourself known in the real estate field and make it easier for you to get cash buyers for the next opportunity or wholesale you intend to make.
Get advice from a real estate lawyer
In most real estate purchase and sale transactions, it is essential to have a lawyer for the elaboration of the contract, procedure, and closing of the transaction.
And when it comes to wholesale purchases and sales, it is highly recommended to avoid any risk in the clauses of the contract for you as a seller.
Because of the real estate attorneys’ experience in this sector, they probably know several investors who might be interested in a wholesale cash purchase.
The more reputable the attorney you seek, the greater the chances that he or she will have contact with major big-money investors.
While these attorneys may be a bit more expensive as far as others are concerned, they can also help you establish a good list of potential buyers and put a higher price on your wholesale real estate sale.
Is it worth looking for cash buyers?
As you may have seen, locating cash buyers is not the easiest or quickest activity. It can be a slow and time-consuming process to get a list of potential cash buyers.
If you wonder whether or not it is worth the effort, the answer is yes. Cash sales can be amongst the best deals on the market, especially with wholesale sales.
Although the process is more time-consuming, it is entirely possible and, in fact, preferable. You immediately have the money to make other investments with a cash purchase. In turn, by paying cash, you can get better prices.
Another little-mentioned advantage is the security of having the money immediately and being able to do whatever you need to do with it.
On the other hand, with mortgage payments, you could be the victim of an upward fluctuation of the market, where your mortgage would have had a much higher cost than your house is worth, and you could not take advantage of the situation because you would sell it to repay the mortgage.
One last recommendation
Another important aspect when selling real estate wholesale is to do it in record time. For that reason, if you already have ideas about the need to proceed with the sale, start with your search for possible clients.
By waiting until you have the properties for sale, you will waste a lot of time looking for potential cash buyers, and it will give the impression that, for some reason, your properties are not selling.
The idea is to start selling your real estate with an idea beforehand of who could be a cash buyer. In this process, you should organize and create your list with various data.
In your list of potential cash buyers, how you should include their first names, last names, phone numbers, email, occupations, if they own a real estate company, the name of that company, etc.
Once you have prepared your list of potential cash buyers, you can start pricing your properties accurately, communicate with each of the buyers, make your proposal, and listen to offers.