When I joined the program, I was pleased to see that a great emphasis is placed on finding cash buyers first, then finding properties to match their criteria.
What greater asset could we possibly have in our investing career than a list of people who have money in their pocket, who want to spend it with you, and will tell you exactly what they want to buy. It puts us in the role of personal shoppers, and if we simply match their criteria, then every property we bring them will be a guaranteed sale.
I like to take it a step further. What we REALLY want are several overlapping cash buyers, who are all asking for the same thing. If you interview 8 rehab cash buyers, it is probable that at least 4 of them are all going to give you the same list of property criteria.
That makes you very powerful with Realtors because you can give them precise property search information, and every property you place under contract that matches those criteria ends up being a sale. And it makes you very powerful when you bring back that property, because you can inform each of your cash buyers that you have other buyers, this property is going to be GONE by tomorrow, and if they want a shot at it, they need to act immediately.
But let's say that you have done some deals, fed some properties to your cash buyers, and they have made some money. Don't you think that they are going to be pretty happy to hear from you when you contact them? These people like you because you have made them some money, and because you do what you say you will do.
So your relationships with cash buyers can be shifted to another dimension. When you have a deal that you want to rehab yourself, instead of going looking for financing among people who don't know you, go to your cash buyers. Let them know you have a property you will rehab yourself, and that you would like them to fund the deal at a very good interest rate.
If you have 4 to 8 of these cash buyers with whom you have an established relationship, you have enough potential access to private money that you may never have to go to a bank again. With 15 to 20 of these cash buyers, you can structure huge deals worth millions where you have a share in the profits with no money out of your own pocket.
Do not underestimate the value of a cash buyers' list to creatively finance your own deals and to syndicate larger opportunities. Your cash buyers are your treasure chest, treat them well, build relationships, and create deals that they will want to be a part of.
When I joined the program, I was pleased to see that a great emphasis is placed on finding cash buyers first, then finding properties to match their criteria.
What greater asset could we possibly have in our investing career than a list of people who have money in their pocket, who want to spend it with you, and will tell you exactly what they want to buy. It puts us in the role of personal shoppers, and if we simply match their criteria, then every property we bring them will be a guaranteed sale.
I like to take it a step further. What we REALLY want are several overlapping cash buyers, who are all asking for the same thing. If you interview 8 rehab cash buyers, it is probable that at least 4 of them are all going to give you the same list of property criteria.
That makes you very powerful with Realtors because you can give them precise property search information, and every property you place under contract that matches those criteria ends up being a sale. And it makes you very powerful when you bring back that property, because you can inform each of your cash buyers that you have other buyers, this property is going to be GONE by tomorrow, and if they want a shot at it, they need to act immediately.
But let's say that you have done some deals, fed some properties to your cash buyers, and they have made some money. Don't you think that they are going to be pretty happy to hear from you when you contact them? These people like you because you have made them some money, and because you do what you say you will do.
So your relationships with cash buyers can be shifted to another dimension. When you have a deal that you want to rehab yourself, instead of going looking for financing among people who don't know you, go to your cash buyers. Let them know you have a property you will rehab yourself, and that you would like them to fund the deal at a very good interest rate.
If you have 4 to 8 of these cash buyers with whom you have an established relationship, you have enough potential access to private money that you may never have to go to a bank again. With 15 to 20 of these cash buyers, you can structure huge deals worth millions where you have a share in the profits with no money out of your own pocket.
Do not underestimate the value of a cash buyers' list to creatively finance your own deals and to syndicate larger opportunities. Your cash buyers are your treasure chest, treat them well, build relationships, and create deals that they will want to be a part of.
Dallin Wall
Real Estate Training Team
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