Hey, guys, What's up? It's Alex Martinez, and today's video is How to Talk to Cash Buyers and Find Their Buying Criteria.
First off, cash buyers are the real estate investors that are going to buy your wholesale real estate deals. They are most likely renovators or flippers that want to purchase a property, renovate it and resell it for a profit. You get paid by bringing them this nice deal that you get under contract, and then you sell that contract or assign that contract to them for $10,000 plus. Cash buyers want you, and you need cash buyers to buy your property with all cash.
So, you may be asking, "How do I find cash buyers?" I previously made a video on how to find cash buyers in your area in one minute or less, so definitely check that out, but some other ways are to go to your local real estate investing association, and there you can meet cash buyers. Also, when you see bandit signs on the side of the road, give them a call, because there's most likely cash buyers on the other side of that phone.
Once you find the cash buyer and you're ready to talk with them, how do you talk with them? Let them know who you are and what you do. You can say, "Hey, my name is Alex. I'm a real estate investor, and I also wholesale deals below market value. I'm wondering if you're open to doing business together by any chance?" Just as simple as that. If they're a serious cash buyer or renovator, they're going to say yes. They want to work with you. They want deals.
Then, from there, talk to them. Get to know about their business. They're a human being and you're a human being as well, actually develop a relationship. You introduce yourself to the cash buyer. Let them know who you are. Once they're interested, then you need to know their buying criteria. You need to know your cash buyer's buying criteria so that you're not looking at random properties and hoping that they want your property once you get under contract. Your goal is to find their exact buying criteria so you can then search for those properties and then deliver those properties to them, the exact properties that they want.
So, what questions do you ask for their buying criteria? I have five items you want to hit when finding your cash buyer's criteria.
Number one, location. You want to know the location of where your cash buyer likes to buy. What zip codes, what neighborhoods, what cities. You need to know exactly where they want so you can look in those areas, so you're not looking in two cities over that they'd never buy in and never want to. No, you know where they want to buy, so you look there.
Number two, is price. What price ranges do they like to buy in. Do they only buy up to $500,000, and in between 3 and $500,000? Or do they go up to a million, million plus? Every buyer has a different criteria on their price range. Just ask them, "Around what price points do you like to purchase property at?"
So, you get the location, you get the price, and then, you get the capacity. Do they have the capacity for multiple deals per month, or is this cash buyer just looking to do one deal this year. You need to ask that question, because there's investors that aren't as sophisticated, and you need to weed those ones out, because they're most likely not going to get back to you the fastest if they've never done a deal and they get cold feet. So, you want to deal with the serious cash buyers that can give you answers quickly whether they want to buy the deal or not. You can ask them, "Okay, so if I give you five properties this month, you buy five properties from me, you have the contractor crews to work on those five properties and you have the capital to buy those five properties? Okay."
So, get to know their capacity and who they are, because you want to develop a long-term relationship with this buyer, where they can buy all your deals. In my experience, about 20% of your cash buyers will buy 80% of all the deals you have, so you'll start to work with the same cash buyers over and over again, because they do what they say they're going to do, they fulfill and they give you quick answers, and they pay you your wholesale check on time.
Another item I like to ask the cash buyer is ideal. What's your ideal property? Is it a three bed, two bath? Is it a two bed, one bath? I'd like to know what their ideal property is, so if I find it, I'm super excited and I know I can bring it to them. For example, and investor might tell you that they want a three bed, two bath that's 1,200 square feet, and that's their bread and butter all day, and it only needs $30,000 in repair. That's what they want. Only cosmetic work. They don't want to put on a new roof. They don't want to fix a cracked slab. Nothing along those lines whatsoever. Now you know when that property comes up, that's your buyer. You know it's a sweet deal. You know he's going to get back to you in time. You know he's ready to pay you, so you can get excited on that, and you can go right to them knowing that it's the exact property that they want. So, what's their ideal property?
Number five, add. Do they add square footage to property? This opens up the landscape of properties for you if they like to add square footage to two bed, one bath, meaning they build out and they put an extra bed and bath in it. So they can make a two, one into a three, two. This is another way to add value. If your cash buyer can do that and add square footage, he's probably a serious investor who's pretty sophisticated, so you know it's a pretty good cash buyer that you want to hold tight to you. It opens up the amount of properties you can look for, because now you know if you find a one bed, one bath or two bed, one bath, or even a two, two, he's open to adding square footage to it. There's a lot of value-add there.
So, to wrap it up, how you talk to the cash buyer is you introduce yourself. You treat him like a human being. You let them know who you are and what you do. You're a real estate investor who wholesales deals below market value and are they open to doing business with you? That's all you need to say. If it's a yes, continue the conversation and go to the buying criteria. Location, where do they like to buy? Price, what price points do they like to buy in? Three, what's their capacity for deals? Four, what's their ideal property? And five, do they add square footage to properties? That's how you talk to a cash buyer. You introduce yourself. You let them know who you are and what you do, and then you figure out their buying criteria by asking about these five things. Be sure to store it on a Word document or on an Excel sheet, or even in your CRM, so when that deal comes up, you know that this deal is perfect for that particular cash buyer, alright?
That is how you talk to cash buyers and find their criteria. I hope you enjoyed this video and I hope you're eager to talk to cash buyers, now, and introduce yourself, develop a relationship with them, find their buying criteria, and bring them a deal where you can get your wholesale check of $10k, $20,000 plus. Thanks so much. If you got value out of this, please subscribe down below. Please turn on the notifications as well. I'll be coming out with more videos on real estate investing and wholesaling. Thanks so much, and if you can, connect with me on social media, too! Take care.
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