How do YOU find cash buyers?

Since I'm online right now, I guess I'll answer first. I have not agressively sought buyers yet in my REI (shame on me). I have had people stop me in the store or around town just because they've heard by word-of mouth what I'm doing. I've had investors from this site contact me because they've READ what I'm doing. I've had investors respond to my "for rent" Craigslist ads (weird). And I sure have learned enough techniques from everyone here for getting the word out! When I'm ready to do more wholesaling, I will be posting on Craigslist, like you Sissy, will speak to those I know personally have some "funds" to invest, will market on the DG site, and will put feelers out in my community, including the local paper.

Thanks, Sissy, for sharing. I appreciate all your input in these forums! I have learned a lot through your posts.

your DG sis,

Rina

Thank you for your insight. We can learn something from each person on here.

you guys are awesome wow i have just learned just from reading your posts i havnt made a dime yet and this is fun. Thank you so DG enthusiests TODD

Another way to find buyers....go to your local Tax Assesors web site and they will usually have a property lookup area. This is the area you can look at all the houses in your town and how much they appraise for,who owns them, how many BR and BA, Sq. Ft, picture or drawing of the house, acerage etc....
If you notice a person or a LLC. that owns lots of property's make contact with them and see if they are interested in investing in more. Tell them you would like to add them to your VIP list for all the great deals you find on single family residences. Let them know you are a wholesaler and will work hard to find exactly what they are looking for.

This is how I have found a few of mine. You may end up having to actually snail mail them a letter if you cannot find them in the phone book or one of the online phone number lookup things.

Hey Todd
Real estate is great and it is very fun! I do know what you mean. Just spend as much time here as you can reading and learning all you can from everyone. There is a treasure of invaluable information on this site and so many people to consult with when you find deals. I see that you are in California. I hear how great of deals youcan get in California. Anita is from somewhere in California and is all the time landing great deals.
Sissy

Today I found someone rehabbing a burn out house. I stopped and asked him if he was an investor. He said yes. He buys in a certain area and has a certain price range. So I now have a new buyer to add to my buyers list.

I call the we buy guys in the ads I find and I also call the numbers on bandit signs I find. Those aren't around as much as they used to be. But I call them and say basically the same thing. I also meet buyers at REI clubs. I've found buyers in clubs I joined online as well. It's amazing where you find buyers once you keep your eyes peeled. The law of attraction works.

God bless you sister,

I have also just recently started ads on the free sites "Investors wanted for Multiple Investment Properties. I am a seasoned real estate investor who realizes quick equity and/or positive cash flow on my deals. Do you want the same?"

and just got my first bite this morning. I asked him to follow up by answering these questions (HIS ANSWERS IN CAPS):

Do you presently have any investment properties? 14 RESIDENTIAL, 3 COMMERCIAL
The price range of homes you are searching for? UP TO 300k, PREFER MULTI FAMILY APTS
Are you credit worthy? 750 CREDIT SCORE
How soon can you close? DEPENDS ON AMT OF INVESTMENT
Are you handy or do you prefer homes that need no work? SMALL CREW BUT NO FIXER UPPERS
Where are you located? SAME AS ME

OK, he is more experienced than me but I do know the area I advertised as well as anyone. I specialize in watching single family homes (mostly REO's) in the 50-100K range, some higher too. How would the experienced assignors or bird-doggers suggest I proceed with my first lead. I have not done this method yet. I have only been the landlord thus far. I do have one offer in on a property and have a list of ones to look at. Sort of nervous to even respond to his response.

Thanks for reading this and look forward to your insight!@!

Kate

I am just starting out. Bought Dean's book bout 5 days ago. Read the whole thing in 2 days...Went back and been taking key notes that I think are important. I am excited to learn and been researching everything I possibly can...I enjoy learning many things and thanks to these post, I know how to word my ads a little better, and respond to them. So I thank everyone on this site and look forward to learning lots more.

I have a question...When you get your buyers list together and find properties they may be interested in, whats your next step...To see if the investors are willing to pay a finders fee to you and if so, set them up with a owner of a property that they may be interested in. As far as after contacting the owner and coming up with a price that is cheaper than what could eventually be sold for, do you then set up a contract with the owner to assign to another buyer. Cause to me, if you find an investor that says yes to paying a finders fee and set him up with the owner, then he or she could potentially basically take the property without paying you cause you just set them up and had no contract. Im a little confused, and know I am missing or not understanding something, so trying to figure out what needs to be done. Thank you so much, Marc HOPE THIS ALL MAKES SENSE!!!

First, you'll want a non disclosure agreement between the two of you. Then you decide if you want to do the deal as a bird dog or as an assignment. As a bird dog, you get a finders fee, which you negotiate ahead of time with the investor. This is a great way to start out because you show your investors that you know what you're doind, as far as finding houses goes. Doing assignments is a bit trickier. First you find a great deal and make an offer with "and/or assigns" after your name and then assign it to your buyer. There are two important factors to this. First, you must prove that you can fund the original purchase price. Very few lenders will just let you use the assignee's funds. Second, you must close both transactions on the same day. Sistreat has a company that will put up the funds for you and charge a percentage of the amount funded. Basically, they give you proof of funds for your end of the transaction in exchange for a fee. They also have title companies that will do double closings. You can find more info here: http://www.deangraziosi.com/node/8643

reighnie

Thanks sissy and reighnie!
this has been very helpful...I am starting out too and have a house we will be bidding on today...I'm scared...I have a potiential renter for it but if we get it the price is low enough that I could probably resell right away...
money is very tight tho and if it doesn't sell right away...we are sunk...
I have to try and figure how to use the investor system...

whats a bird dog?

A bird dog is someone that drives around and finds ugly houses that could result into great deals. It's not always ugly homes that you are searching for. It could be homes that have potential, may be vacant or unkept.

To find buyers one strategy is to go to a local chapter of "National Association Of Remodeling Contractors" and call a couple dozen names on the membership roster and say the following:

I'm a real estate investor who buys, renovates, and sells single family houses. My lot in life is searching out properties that are candidates for renovation. I often find more properties than I can handle.

Sissy, when it comes to finding "End Buyers", I do various tasks, I use Craigslist and Backpage.......Faithfully, I'll post an Ad that states that I'm looking for Rehabber's because i have too much Inventory and NEED to Unload WHOLESALE Properties WAAAY UNDER FMV! Or Something of that Nature. I use MORE than 1 Catagorey to post.

The other Main way I get "End Buyers" is: Real Estate Clubs(Meetings), these meetings are by Far the best way to make Use of your time as a WHOLESALER Starting Out, the Connections and Resources that they make available are seemingly Endless.....I ran around like a "Chicken with my Head cut off" to each group of members giving my presentation of #1 Who I am, #2 What I do, #3 How it Benefits them, etc.

These are 2 Excellent ways to get an ENDLESS POOL of Rehabbers or "End Buyers" for your Wholesale Deals, SULLY

Sully you are so right about the REI meetings around town. They are an invaulable source of information.

Another thing I do is when I see a house under total rehabbing I stop and find out who is the person rehabbing. Sometimes you find an investor who is into buying ugly houses to rehab.

Then of course calling on the For Rent signs and asking if they are investors and are currently buying any investment properties.

Hi! I ordered the book a few days ago, but have not yet received it! I await anxiously! I do have Dean's home page and have been working with the AFF.

These postings are VERY helpful as I begin my 'homework' ahead of reading the book. I am making a list of the suggested ways to find buyers and 'checking it twice'!

Merry Christmas everyone!

Hey Elana, I am not familiar with a bandit sign! What it it? Thx!

Hi Cheyenne
I am not Elena but a bandit sign are those signs you see up high on telephone poles that say things like: I Buy Houses...or they are sticking out of the ground on those wire legs sometimes. People use them for various advertizing of their businesses. I think they call them bandit signs because late at night people come out to post them because of fear of being confronted by the police about putting up advertizing illegally. But you better have an unlisted number on them because they can hunt you down if the number on it is listed.
Sissy

Hey Marc
That is why you want to first "lock the house up" on a contract with the seller. Then you go down to your local county court house and file the Notice of Option which puts somewhat of "cloud" on the title...protecting your interest.
Then you call on the investor and say "Hey Tom..I think I have a perfect house according to what you described to me that you buy...when can you come take a look?" etc.....
Sissy

Hey Marc
That is why you want to first "lock the house up" on a contract with the seller. Then you go down to your local county court house and file the Notice of Option which puts somewhat of "cloud" on the title...protecting your interest.
Then you call on the investor and say "Hey Tom..I think I have a perfect house according to what you described to me that you buy...when can you come take a look?" etc.....
Sissy[/quote]

As far as going down to the local county court house and filing the NOTICE OF OPTION, is that necessary or does that just make things a little easier cause nobody at all can basically buy that property. If thats what the notice means anyways???

Marc
The Notice of Option lets the other inverstor know when he goes down to the court house to file a Notice of Option...that you already have the first option to buy the house until the date specified on the contract between you and the seller.
So he will have to turn and leave because the ladies at the court house will not let him file until your time has expired on the contract. Just more protection for you so someone doesn't steal your deal till your time is up.
Sissy

It looks something like this....
+++++++++++++++++++++++++++++++++++++++++++++

NOTICE OF OPTION CONTRACT FOR SALE AND PURCHASE

This NOTICE OF OPTION CONTRACT FOR SALE AND PURCHASE (the “Notice”) is made, executed and delivered as of the _____ day of ________________, 20___, by and between __________________________(“Seller”) and ______________________________(“Buyer”).
The Seller grants to the Buyer an Option to purchase the real estate as described below (the “Property”):
Property Address: __________________________________________________________________
City, State Zip: __________________________________________________________________
Parcel #: __________________________________________________________________
The term of this Option Contract is from the _______ day of ________________, 20___ and expires on the _______ day of __________________, 20___. The Buyer can execute the Option Contract at any time during the Option Period.
The Option Contract may be terminated and this Notice released and satisfied of record by execution and recording of a Release of Option Contract signed only by the Buyer.

The Option Contract for Sale and Purchase contains the following Representations and Warranties:
“6. REPRESENTATIONS AND WARRANTIES: To induce the BUYER to enter into this Agreement, the SELLER makes the following representations, warranties, and covenants.

SELLER hereby grants the Buyer and or their representatives all of the necessary rights to immediately list for sale, market, negotiate and enter into a contract to lease or sell immediately to a third party for a profit. All documentation in connection with the foregoing will be made available at the request of all Lenders, Sellers, and Buyers involved in the transaction.”

See Exhibit A (Legal Description) attached
AS TO SELLER:

In witness whereof, we hereunto set our hand and seal, at _____________, in the County of ___________________, State of _______________, this _______ day of _____________, 20____.

_____________________________________ ___________________________________
Seller Seller
_____________________________________ ___________________________________
Witness #1 Witness #2 (Notary may be a witness)
State of __________________
County of ________________ ss:

Before me, a Notary Public in and for said County, personally appeared the above named _____________________________________________________ who acknowledged and declared that he did sign and seal the foregoing instrument and that the same is his free act and deed.

In testimony whereof, I have hereunto set my hand and official seal, at _________________, in the County of ___________________, State of ____________, this ______ day of _____________, 20___.

______________________________
Notary Public

AS TO BUYER:

In witness whereof, we hereunto set our hand and seal, at _____________, in the County of ___________________, State of _______________, this _______ day of _____________, 20____.

_____________________________________ ___________________________________
Buyer Buyer
_____________________________________ ___________________________________
Witness #1 Witness #2 (Notary may be a witness)
State of __________________
County of ________________ ss:

Before me, a Notary Public in and for said County, personally appeared the above named ____________________________________________________ who acknowledged and declared that he did sign and seal the foregoing instrument and that the same is his free act and deed.

In testimony whereof, I have hereunto set my hand and official seal, at _________________, in the County of ___________________, State of ____________, this ______ day of _____________, 20___.

______________________________
Notary Public
This instrument prepared by: Grantor

Hi everyone,I was wondering if someone knows of any investors in the Orlando Florida area.

Playing with words, "making a list .... and Checking it twice. What a way to go. Good luck and Merry Christmas back at you.

Sandra

Last night I found a cash buyer at my local Home Depot buying supplies for his current rehab project. You jut never know where you will find these types of contractors/people who buy.

Do you do this everytime you lock up a property and what does it cost?

Have you locked up any REO's and if so, have you done the option with them?

What percentage of the time would you say have had to back out of a contract because you were unable to sell it in the time frame?

THANKS!! Kate

It cost me $40 bucks. I guess each state is different on prices but not by much. I use it everytime for my own protection.

I don't lock up properties that I feel I cannot sell. I find what my investors request. I have had many people try to get me to go to contract on their houses over the past 3 weeks but....the house is in such disrepair I ususally walk away. I only have one investor who doesnt mind doing extensive repairs...but only in certain areas. Then he wants to basically buy the house for what the land is worth. So I really have to make a deal for him.

No I have never worked an REO. I would like to sometime but finding a banker who would let me assign one is another thing. So far I have never found a banker willing to take and or assigns.

I am still working on my buyers list though mostly through online advertising. i am startting to brainstorm on the traditional method of building a buyers list and one area i am looking at finding cash buyers is real estate auctions.

Though i am yet to attend my first live real estate auction, i believe the environment at an auction will give you access to cash buyers and the price range, locations and other features you might need to know.

This is my wildest imagination on one way to locate cash buyers. If any one has had success with this method, please let us know how effective it is.

Is the non disclosure aggreement between me, the bird dog and the seller? Where do I get such document?