How I Sold My Latest Wholesale Deal (Find Cash Buyers Now)
In the world of wholesaling houses for fast money... cash buyers are king! And yes, even though I have a HUGE cash buyer database, every once in a while I send out a property that none of my current cash buyers have an interest in.
This was the case with my latest wholesale deal on Keim Dr. in Phoenix, Arizona. This was a 2001 sq. ft. 3 bedroom 2 bath house built in 1958 that needed a medium amount of rehab (mainly updating). I had the property under contract from a motivated seller for $105,000, and was marketing the property for sale for $125,000. I estimated the ARV of the property around $160,000 - $165,000 depending on what rehab was done to it.
Used My M5 Marketing Machine Software To Blast Out The Deal To My Cash Buyer Database...
But we received ZERO calls on the deal. :-(
So about 5 days later we lowered the "As-Is Cash Only" price down to $119,900.
And we received 3-4 calls, but no one ended up wanting the deal. :-(
So the next day we decided to use a "top secret ninja tactic" to find use a qualified cash buyer off the MLS.
How To Reverse Engineer Closed Transactions Off The MLS To Find CA$H Buyers Now
Getting access to the MLS can be difficult (especially if you're a brand new investor), but once you have access, there are many benefits you can receive besides being able to comp properties. One of the best benefits (in my opinion) is the ability to do research in specific areas of your target market(s) to find cash buyers. This can be done quickly, and for FREE (so you don't have to pay for a service).
CLEVER INVESTOR WHOLESALING TIP: There are three ways a real estate investor can gain access to the MLS.
- Use Your Investor Friendly Real Estate Agent - Not all agents are created equal. Finding an "investor friendly" real estate agent that understands how an investor thinks about deals should be one of your highest priorities when first starting out learning how to invest in real estate. Explain to them how you can benefit them (buy a lot of properties through them, pass them your retail leads), and explain what you would need in return (access to MLS, market research, daily offers made on distressed MLS properties, offers made on HUD properties).
- Becoming A Licensed Real Estate Agent Yourself - Getting licensed may take a while (and typically costs around $1500 - $2000 after classes and dues), but is well worth it. I find it a HUGE benefit being licensed and being an investor.
- Getting Hired By A Local Broker / Agent As Their "Marketing Coordinator" - This is one of my favorite techniques for anyone that doesn't want to be licensed themselves. What you need to do is be-friend an investor friendly real estate agent / broker and offer to "work" for them as a marketing coordinator. Any assistant of a real estate agent / broker can gain limited access to the MLS for a small monthly fee (you get your own MLS username and password so the agent doesn't have to give you theirs). This will allow you to access the MLS to comp properties, and do market research without having to bother the agent every 5 minutes!
Back to reverse engineering the MLS to find cash buyers now...
So here are the steps we took to find cash buyers now near our subject property on Keim Dr:
Step #1 - We pulled up all the "closed" transactions near our subject property that closed within the last 3 months that had the financing type as "cash".
Step #2 - We checked the tax records to find the "taxable mailing address" for the cash buyers.
Step #3 - If the "taxable mailing address" was the same as the property address we ignored the listing. This means the cash buyer is not an investor...but simply a homeowner that paid cash for their own personal residence. If the "taxable mailing address" is different then the subject property they purchased, we pulled the "taxable mailing address" and "buyers name" and placed the data into an excel spreadsheet.
Step #4 - We then sent a postcard to the investor (using www.click2mail.com) saying "we noticed you recently purchased a property at 1234 Main Street, we have another smoking hot deal near your property at 2402 W. Keim Dr that you may be interested in. Call us immediately if you're interested in adding this "money-maker" into your portfolio".
In all, we found about 70 recent cash buyers that we ended up mailing a postcard to. Within a couple of days, we got a call from a California investor that received our postcard that wanted the property. He offered us $115,000 and we ended up assigning our interest in the deal over to him. The deal is set to close in a couple of days and I will make a cool $10,000!
We also received over 10 more calls on the property, have a back-up offer, and added 11 new "fully qualified" cash buyers to our database.
Well, I hope anyone reading this uses my reverse engineering tactic to find cash buyers now in their local area. It's easy, cheap, and a great way to sell your real estate wholesale deals and build a cash buyer database.
Your " find cash buyers now" finding friend in the biz,