How to Build a Cash Buyers List for Real Estate Wholesale Deals
As a real estate wholesaler with over two decades of experience, I can assure you that finding cash buyers for real estate wholesaling is a vital part of your job.
Your or your company’s weekly schedule should include time to locate and stay in touch with cash buyers.
In this article I will show you how to find cash buyers for real estate wholesale deals in 25 effective ways. Read on.
Is Buying a Real Estate Cash Buyers List a Good Idea?
As mentioned in our guide Wholesale Real Estate Investing 101 for Beginners, one of the first and most important questions you should find an answer to is “where to find cash buyers for real estate wholesale deals?” One way is to find a list of cash buyers for real estate that you can buy.
Are these lists worth your time and money? The most appealing thing about buying a list of cash buyers is that it’s a quick way to get started.
But you need to be aware that many of the names on the list may belong to people who are already out of business. If you buy a list of 100 names, you probably aren’t getting a list of 100 real prospects.
Since you can build your list of wholesale real estate buyers, you should consider whether paying for a list is the best use of your funds.
You will be cold calling on these prospects. They have probably already been contacted by a lot of list buyers before you. Calling on them will be about as tough a sell as you’re going to encounter.
It will take longer to build your list. But what may seem like a negative can be a positive for you:
- Creating a wholesale property buyers list for yourself will teach you a lot about the business.
- As you build your list, you develop relationships with your buyers.
- You won’t have to depend on someone else to bring you wholesale property buyers.
Searching for real investors is a better use of your time than calling on people who aren’t active investors. You’ll make connections with people who want what you are selling.
Finding buyers for yourself lets you control the quality of your list. When you need a buyer you’ll know immediately:
- Who is active at that moment
- What type of property they want
- What locations interest them
- The level of repairs and remodeling that they can handle
Now that we’ve determined why it’s an important part of your wholesale real estate marketing plan, let’s look at how to build a cash buyers list.
When you are building your real estate wholesaling business, one of the things that you’ll need to learn is how to find cash buyers online.
A great place to start is HouseCashin.com. HouseCashin is the largest online marketplace for the off-market properties for sale.
#1.1 HouseCashin Directory
Unlike many online sources, HouseCashin screens the investors and cash buyers listed on their website. The cash buyers on HouseCashin have been vetted for their experience, integrity, and reliability.
To find cash house buyers in the geographical area of your interest, just choose your location and you will see a list of cash buyers active in that area. These are the individuals and companies who are actively looking to acquire properties for cash.
We also have a directory wholesalers can add their business to. Sign up and become visible to cash buyers looking for local real estate wholesalers on our website.
HouseCashin is a quick way to add active investors to your list of buyers.
#1.2 HouseCashin Marketplace
HouseCashin Investment Property Marketplace is a powerful disposition engine designed to help wholesalers find cash buyers actively looking to acquire wholesale deals. Unlike other online property marketplaces, thanks to proprietary property-matching engine, HouseCashin Marketplace offers the most advanced targeting capabilities that boast industry’s greatest exposure and most precise targeting when it comes to property disposition.
Additionally to the basic parameters such as a property’s size, asking price, and description, the listing information includes such metrics as profit potential, estimated ARV (After Repair Value), rehab estimate, and others that help investors evaluate the deal’s profitability.
This makes the platform investors’ favorite place to shop for investment properties. Your listing will show your information as the seller of the contract so that an interested investor will be able to contact you and inquire about the deal. Once you get contacted by a potential cash buyer, add them to your list.
#2 Google Search
When learning how to find investors for wholesale houses, most people will start with an online search.
Use the familiar phrases such as “we buy houses in [your area]”, or “we buy houses for cash in [your area]”. The ones used by homeowners who are looking to sell their property to an investor.
However, some of the companies from the search results are wholesalers looking for properties. Finding out which companies are wholesalers and which ones are cash buyers isn’t a waste of your time.
Knowing who the players are in your market makes you more knowledgeable. You may need to work together sometime and co-wholesale a property.
Some social media platforms, like Facebook and LinkedIn host groups of users with similar interests. These venues are very useful to the real estate industry.
There are groups created specifically for investors in specific locations. Simply join them and find cash buyers. The search function will help you find groups in your local market. Use variations on your query and make sure you include the name of your city:
- House flipping in (your location)
- Home flipping in (your location)
- House flippers in (your location)
- Home flippers in (your location)
- Fix flip in (your location)
- Real estate investors in (your location)
- Real estate investing in (your location)
Additionally, using the same approach, look for groups for other professionals with whom you would personally network such as local hard money lenders, landlords, and property managers (more on this in the next section).
As long as they are working in their clients’ best interests, professionals who serve investors can refer them to other professionals (like you). If you can bring opportunities to their clients, you are helping them add value to their client relationships.
After all, the opportunity that you bring to their client is an opportunity for them as well.
Remember, your referral sources will also expect referrals from you. You can only feed business to so many attorneys, CPAs, etc. If you try to keep too many referral sources, you will weaken your influence with them.
Eventually, you will need to reach a balance in your referral network. For now, network with as many professionals as you can to find those who are a good fit for you.
#4 Title Companies
A relationship with the right title company is very important for a real estate wholesaler. You need to find one that is experienced in closing wholesale transactions.
This can be especially important with “double closings” where you take ownership (temporarily) of the property instead of selling the contract.
As a wholesaler, you are in a position to bring business to a title company regularly. They should be able to introduce you to other referral sources.
#5 Investor-Friendly Realtors
Some realtors only work with the typical, traditional residential homeowners as clients. Investment real estate isn’t familiar to them.
In every market, however, there are realtors who work with investment professionals.
One way in which they can help you is to share market information from the local MLS about all-cash closings. The buyers in those transactions are often investors who you want to add to your cash buyers list.
#6 Hard Money Lenders
A hard money loan is one that is made by a person or company other than a traditional lender like a bank. They are typically short term loans that are secured by real estate.
Because they are based on the value of the property more than the creditworthiness of the borrower, hard money loans can be processed faster than traditional loans. For that reason, they are often used by wholesalers and house flippers who need short-term financing that closes quickly.
Both hard money lenders and real estate wholesalers work with short term investors. They can be a great source of referrals for one another.
#7 Closing Attorneys
If you haven’t already, you will find a real estate attorney to represent you in your business.
You are bringing your attorney real estate closings. That should count for something. Don’t assume that they will think of you when they have referrals — ask for them.
Sometimes it’s good to have several attorneys in case you need something done quickly and one of them is busy. You can probably manage a good referral relationship with 2 attorneys. More than that is not advised.
Current owners of residential rental properties are good prospects for your buyers list.
Look for rental properties that are posted online on websites like Zillow, Trulia, Redfin, and Realtor.com. You can find landlords advertising directly on Craigslist.
Driving through your target markets should be a regular activity. Look for properties with ‘For Rent’ signs. The property owner’s information can be found on the county tax records.
#9 Property Management Companies
Many landlords use a property management company to handle property repairs, collect rents, and market the property for rent.
This can be a very good mutual referral relationship for real estate wholesalers. They want to know who you are selling to so that they can solicit their business.
Property management companies are allowed to share their clients’ names with you. After all, you can easily look up the ownership of the properties that they manage on public records.
#10 CPA/Tax Advisors
Tax advisors who work with real estate investors can provide and receive client referrals. According to the American Institute of Certified Public Accountants, they can also receive fees for referrals.
Ask your network of closing attorneys, landlords, and hard money lenders for the names of tax advisors in your market.
Like attorneys and title companies, you don’t want to spread yourself too thin by promising referral business to a lot of CPAs. For that reason, you should spend your time networking with the CPAs who are most likely to have cash buyers as clients.
#11 Real Estate Investment Clubs
Finding and joining a Real Estate Investment Club in your area should be a priority in your business plan.
In addition to enhancing your overall knowledge of the marketplace, active participation in a club can lead you directly to cash buyers.
Attend your local club regularly, not just when you need a referral. You need to get to know the players, and they need to get to know you. Prepare for the sale long before you have a property under contract.
#12 Self-Directed IRA Meetups
Most people don’t know that you can direct the investment of your IRA. Knowledgeable investors self-direct their IRAs for investment funds all over the country.
Meetings of Self-Directed IRA investors are similar to Real Estate Investment Clubs. Getting to know these investors will introduce you to an entire category of cash buyers for your business.
BNI is Business Networking International. This is an organization that holds regular networking meetings for its members.
BNI charges a membership fee of between $400 and $600 a year. There may also be a fee to offset the costs of renting a venue or meals/refreshments.
BNI claims that its members closed over $16 Billion in referred deals worldwide in 2019.
Members are given the chance to present themselves and their services to the membership during one of the meetings.
There are over 9,500 BNI chapters throughout the world. Each chapter restricts membership by profession. Your local chapter will only allow one real estate wholesaler. You need to ask up front if they already have a member in your profession.
Networking with other professionals may lead to an opportunity to work with another wholesaler on a deal, or as partners in business. This is called Co-Wholesaling.
Such a joint venture can be especially beneficial to a young wholesaler who is just starting their business.
The benefits of Co-Wholesaling are:
- Access to each other’s buyers list
- Access to each other’s property pipeline
- Combining your knowledge and experience
- Sharing the workload
- Closing more deals
You have to be careful to put any partnership in writing. Make sure that you spell out the responsibilities of each party and how you are both to be compensated.
Long-term partnership agreements should account for the details of a dissolution of the partnership. If you decide to stop being partners:
- Can you still call on the buyers on your list?
- What happens to any pending contracts/sales?
Regularly attend auctions in your market to meet cash buyers. Look for foreclosure auctions, tax lien auctions, and private auctions of real property.
In an auction, the bidders have to be ready to complete the purchase quickly. Sometimes, they have to present their funds within 24 hours. This makes an auction a gathering place for cash buyers.
Be prepared before you go. Rehearse your “elevator pitch”. This is a short, concise description of you and your business that can be told in an elevator before the doors open.
When you meet someone at an auction or any other networking event, you aren’t trying to convince them to work with you. Your goal is to get the opportunity to follow up with them. It’s an introduction, that’s all.
Add the buyers you meet at auctions to your buyers list and start marketing yourself and your properties to them.
Look for Recent Cash Sales
#16 Public Records
We’ve already discussed how you can use public records to find the owner of a property that you know is an investment property. You can also search public records to uncover investment properties. Those owners are cash buyers who need to be on your list.
Information on property sales is available to the public. Most counties have an online platform to search their records.
When a property is sold, the deed is recorded. This shows that the ownership of the property has changed. The deed will tell you the name of the new legal owner.
When a mortgage loan is used to buy the property, the mortgage or deed of trust is also recorded. This is a lien on the property. If there is no lien filed, the transaction was done with cash.
You can locate cash buyers by searching for deeds that were filed with no corresponding lien. Not all cash buyers are investors, but most of them are.
Listsource.com is one of several websites that provide property transaction information or buyers lists.
Some of these providers give you access to any market in the US. Others focus on the records found in one or more specific counties. Some give you a menu of reports from which you can choose.
The price for these services can vary depending on the scope and nature of their data. There are monthly subscriptions that range from $45 to $500.
Usually, these sites let you filter the information requested. The data you receive is based on your criteria and you pick out the potential buyers.
Listsource is known for its ease of use. They generate the lead list for you. You can set filters on the information based on your target audience.
Listsource has an option to pre-pay for a set number of leads. This can run from $600 for 4,137 leads to $1,725 for 13,800 leads. They also offer monthly subscriptions from $150 to $500 per month.
New wholesalers may want to pay by the report. Listsource will do this, but they have a $50 minimum purchase amount.
To have an effective wholesaling business. you will want to learn how to find cash buyers on MLS. MLS stands for Multiple Listing Service. This is the database used by brokers in your area to list residential properties for sale.
MLS databases are set up and managed locally. It may be owned by a local or regional association of realtors, a company, or a real estate trade association.
Each MLS is separate from other databases around the country and may have its own rules and structure.
Once a property has closed, the listing agent changes the MLS status to Sold and adds information about the sale. This data helps agents to understand the market and estimate the market value of homes that they are listing.
You can usually set filters in an MLS search for cash sales. Once you know which properties sold for cash, you can search county property records for the buyer.
Access to an MLS requires a paid membership. In many cases, MLS membership is only available to licensed agents. You may even have to become a realtor to join your local MLS.
This is a good reason to network with investor-friendly realtors.
Hudhomestore.com is the site where the Department of Housing and Urban Development (HUD) lists homes for sale. These homes were financed with FHA loans and had to be foreclosed on by HUD.
Homebuyers and investors can buy these homes by bidding for them on the site. The site shows information about the winning bidder. If it shows O/O, that means that the home was bought by an Owner/Occupied bidder, or homeowner.
If the notation is INV you’ve found a cash investor. Simply search for the property address in the county tax records and you’ll get the information you need to add that buyer to your list.
Other Websites and Software
#20 Local Tax Assessor’s Website
The county property tax records in your area contain information on property owners that is open to the public.
Go to the tax assessor’s website and familiarize yourself with the search features.
When you believe that a property was bought by an investor, you can look up that address and find the buyer’s contact information.
You can also proactively use the tax records to find investment properties. Search for:
- properties that are owned by LLCs or corporations
- owners who have multiple properties.
These are probably investors who can be added to your buyers list.
Section 8 is a government program to assist lower-income renters. The program gives a subsidy for qualified renters directly to landlords.
GoSection8 is a website where landlords list Section 8 qualified properties for rent. These landlords are investors that you can put on your list.
You can also contact HUD to get a list of Section 8 housing in your area. That list includes landlord contact information.
Freedomsoft is a full-service platform for real estate investors that automates their business. The company advertises features that include phone and text systems, email support, workflow management, analytic features, and lead generation.
Freedomsoft charges a monthly fee that ranges from $97 to $297. The price depends on the number of leads provided and the number of users.
Listsource is a lead generation website. You can use it to find buyers and properties to wholesale.
The information filters that you select can direct the results toward motivated sellers or cash buyers.
This is a good resource for wholesalers who use direct mail to market themselves to investors.
Wholesalers who want help with their marketing, as well as a buyer database, can use Findcashbuyersnow.com.
This site has one subscription level of $149 per month. This includes a national buyer database, unlimited searches for any county in the United States, and marketing tools for reaching those buyers.
#25 Real Estate Crowdfunding Platforms
Crowdfunding creates investment opportunities for people who don’t have a lot of money to invest. Crowdfunding platforms put together groups of people who invest relatively small amounts of money.
The funds are placed into investments like real estate properties and developments.
Real estate crowdfunding investments include financing house flipping projects and residential rental properties. The real estate developers and landlords that they provide with financing are good prospects for your buyers list.