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how to find wholesale buyers

How To Find Cash Buyers For Wholesaling Real Estate

real estate investing strategies wholesale real estate Jun 21, 2024

One of the many challenges Real Estate Skills' students face is how to find wholesale buyers, otherwise known as cash buyers for wholesaling real estate.

Wholesaling is a common practice among those who are just getting started in real estate investing. It involves finding a real estate deal on behalf of local investors and flipping the purchase contract for a profit. But to be successful, you must locate a pool of real estate investors who may be willing to buy the property - also known as wholesale buyers.

In this article, we'll define who wholesale buyers are and teach you how to find buyers for wholesale real estate deals. Here is a look at how to find cash buyers for wholesaling real estate:

Ready to take your real estate wholesaling skills to the next level? Finding wholesale buyers is just one step in the larger process of successful wholesaling. Enroll in our free training today to master every aspect of the trade and capitalize on all the opportunities in your market. Don’t miss out—sign up now and start building your real estate expertise!


*Before we begin our guide on finding wholesale buyers, we invite you to view our video on How To Find Cash Buyers For Wholesaling! [FREE] Host and CEO of Real Estate Skills, Alex Martinez, provides a comprehensive, step-by-step guide for finding wholesale buyers.


What Is A Wholesale Buyer?

A wholesale buyer is someone willing to buy a property that a wholesaler has scouted. A wholesaler's job is to find properties being offered at a significant discount, typically because the homeowner is either in foreclosure or is going through a serious life event and needs to sell quickly.

The wholesaler will then get the property under contract, turn it around, and sell it to the wholesale buyer at a markup. If the wholesaler priced the deal properly, the buyer could purchase the property and still make a profit by rehabbing and selling it at market value. That allows the wholesaler to pocket the difference as a fee for helping the buyer find investment opportunities without doing all the legwork themselves.

What Is A Wholesale Buyer

A wholesale buyer can be anyone willing to purchase the house from the wholesaler - but typically, a real estate investor has the means to purchase the property and rehab it to meet market standards. So, if you want to try your luck at wholesaling, you’ll want to target local real estate investors who buy houses to flip them.

Now that you know what wholesale buyers are, do you know how to find cash buyers for your wholesale deals? If not, you've come to the right place. Once we introduce you to wholesale house buyers, we'll dive into how to find buyers for wholesaling.

What Makes A Good Wholesale Buyer?

Not all cash buyers are equal. Some can make the wholesaling process more efficient and enjoyable than others. To ensure you transact with good wholesale buyers, look out for the following characteristics:

  • Liquidity: Given that time is of the essence in wholesaling, a good cash buyer should be liquid; this ensures they can readily access the necessary funds and pay in full immediately, allowing you to move on to finding and wholesaling other investment properties quickly. It also reduces the risk of the deal falling through and finding cash buyers again due to loan denials. Request their most recent bank or investment account statements to verify buyer liquidity. If they rely on a loan, ask for a proof of funds letter from their lender. Additionally, you may request an escrow deposit to confirm their financial capability.
  • Prior Experience: Good wholesale buyers are experienced and familiar with the legal and procedural aspects of wholesaling. They know the documents necessary and when to provide them, and will often require fewer contingencies, speeding up the transaction. Their long-term experience in the industry also means they've established relationships with professionals such as inspectors and title companies that you can tap into for due diligence, resulting in smoother transactions. Moreover, they're well-versed in market values and trends, enabling them to make fair and competitive offers from the word go; this reduces negotiation time, making the process more efficient for both of you.
  • Decisiveness: You also need to look for decisive buyers. A decisive buyer doesn't require prolonged deliberation periods. They can evaluate and quickly say yes to a deal, accelerating the transaction process. They also usually have fewer contingencies, reducing delays, and are less likely to back out of a deal since they know what they want.
  • Location: While you can wholesale real estate with buyers from any location, prioritize wholesale buyers within your investment location. Not only can they quickly assess the wholesaling deal, but you can also rely on them for future deals, easing wholesaling lead generation. Additionally, they're familiar with regional and zoning laws and other legal requirements. As a result, they can navigate the closing process efficiently, eliminating the delays caused by unfamiliarity with local procedures.
  • Communication: A cash buyer with excellent communication skills can clearly lay out their requirements and decisions, preventing misunderstandings that may delay the transaction. A buyer who communicates well negotiates better, reducing the time spent in back-and-forth discussions while speeding up the agreement process.

How To Find Cash Buyers For Wholesaling: 8 Proven Strategies

Wondering where to find wholesale buyers? Attend local property auctions, such as foreclosure auctions. These events usually attract real estate investors and regular homebuyers looking for a good deal. Additionally, they're typically cash buyers, as auctioned properties are usually paid for on-site.

Besides auctions, look out for “we buy houses in cash” bandit signs and contact the listed numbers. These signs are often set up by house flippers and property management companies looking to purchase distressed homes and resale them for a profit. Check out public records such as your local area county files, newspapers, and lis pendens records for leads. Also, join local area real estate social media groups as local area entrepreneurs tend to post ads on these platforms. Additionally, try these eight proven strategies to find cash buyers with the qualities discussed earlier:



Purchase A Cash Buyer Directory

The first method to finding wholesale buyers is investing in a directory of cash buyers. Such resources are readily accessible online and can serve as a launchpad for your venture, offering a plethora of contacts to propel your business forward swiftly. This is perhaps one of the most underrated methods for learning how to find cash buyers for wholesaling.

These comprehensive lists compile the details of cash buyers with a track record of purchasing properties outright. Leveraging these directories can save you the legwork of identifying potential investors. For a reasonable cost, you're awarded access to current directories filled with investors who may possess extensive property portfolios and the capacity to expand them. Expect to find essential contact details like phone numbers and emails of established cash buyers.

To maximize the effectiveness of these resources, it's wise to look for directories with positive user feedback. This step confirms the reliability of the lists, ensuring you connect with credible cash buyers within your desired market. Building a robust roster of ready investors can significantly simplify the wholesale real estate process, especially when these buyers are open to collaborating with you.

Bandit Signs

A bandit sign is a small, poster-sized sign that you’ll often see on lawns and intersections advertising different services. Many cash buyers and wholesalers post bandit signs that say “We Buy Houses” or “In Foreclosure? We Can Help” or something along those lines.

These signs are not only effective for attracting motivated sellers, but they can also be useful for finding buyers as well. If you post them all over town, you’ll likely get calls from a few buyers wanting to know what kind of deals you have available. So make sure you include your contact information such as your phone number and website on the sign, so they know how to get in touch.

Build Your Real Estate Network

Networking is always a good way to find leads, no matter what your business. Start by leveraging your personal network and see if anyone you know or work with is interested in buying an investment property. You could also join your local REIA or real estate investors association and pass out your business card.

This is a great way to connect with potential buyers because you already know that they’re involved in real estate. Also, be sure to join any other real estate groups in your local area. If you want to find qualified buyers near you, you'll have to meet them in areas they frequent. You should also check the local newspaper for listings. Many wholesale buyers advertise their services in the paper, which will make your job much easier.

download wholesaling cold calling script

Leverage Relationships With Real Estate Agents

Cultivating relationships with local real estate agents can be a strategic move for wholesalers aiming for swift transactions. Agents, with their extensive networks that span lenders, investors, and fellow agents, often have the inside track to potential clients who may be interested in taking over your wholesale contract. Inquire with agents in your community if they represent or know of any clients seeking quick property acquisitions, especially those willing to pay in cash.

Moreover, agents are often connected to a broader community of realtors who can introduce you to the right buyers for your property. By establishing a rapport with several real estate professionals, you gain access to a valuable information exchange about past and potential cash buyers within their circles. This strategy not only broadens your network but also enhances your chances of connecting with serious buyers willing to close deals promptly.

Find Local Landlords

Another way of finding buyers for wholesale deals is to connect with local landlords. Not all flippers sell the homes they renovate - some keep them to rent out to tenants. Plus, many real estate investors are involved in multiple aspects of the business and may own a rental property in addition to doing fixes and flips. Or, at least, they may be able to point you to someone in your network who may be interested.

You can find landlords by contacting local real estate agents, calling for rent signs, or checking county records of the owners of investment properties in the area. A good way to find landlords is to check with the county auditor. You can use Zillow to pull a list of all the homes recently sold in the area. Then, visit the country auditor and check their records.

There, you'll be able to determine the name and contact info of the new buyer. Look for any buyers that don't list their new purchase as their primary residence - chances are that means it's an investment property.

For the cost-conscious wholesaler, there's an approach to finding cash buyers that doesn't require purchasing directories—although it may be more time-consuming. Dive into public records and scour online classifieds for individuals who have completed cash transactions for home purchases.

However, it's critical to thoroughly vet the cash transaction records you find. Confirming the legitimacy of your prospective buyers is a key step in this process. Done meticulously, tapping into the wealth of information available on public records can be an invaluable strategy to support your real estate ventures without incurring additional costs.

Utilize Social Media & Online Resources

Likewise, if you have a large following on Facebook or LinkedIn, you could try posting there as well and see if anyone in your personal or professional network is interested.

You could also try to find users who advertise themselves as real estate investors in their profile and send them a direct message. You may or may not get a response, but if you are persistent, you’ll eventually find a solid lead.

Real estate forums are another good place to look. Reach out to anyone who posts regularly on a popular real estate board and see if they have any interest in your deal or advice on building a buyers' list. Even if you don’t find any direct leads this way, you can often find a wealth of information that may point you in the right direction.

Read Also: Wholesaling Auction Properties: The (Ultimate) Guide

Craigslist

Craigslist is an online website renowned for classified advertisements across various industries. For the real estate industry, Craigslist features house listings for sale and rent by realtors, real estate agents, and individual property owners. It also has buyer ads from different states expressing interest in purchasing properties for cash; this makes Craigslist a prime resource for wholesale leads as it offers motivated leads and free ones. Here's how to build wholesale buyer lead lists using Craigslist.

  • Visit Craigslist.com
  • Navigate to your target state and select the desired city
  • Click on the “Housing” category to access all the subcategories on Craigslist
  • Type “we buy houses” or related keywords into the search bar at the top of the page and hit enter

These steps will generate results for buyers actively seeking to purchase properties in your target and surrounding areas. Click on any ad to find the buyer's contact information on a detailed listing page. To reveal contact details such as name, email, and phone number, click “reply."

Note that Craigslist will sometimes mask the email addresses to prevent spam. Copying and pasting the email into your email will reveal the full address. Once you have the contact details, return to the ad results page and repeat this last step, where you click on each ad to compile a list of cash buyers.

Common Mistakes To Avoid When Working With Wholesale Buyers

Common Mistakes When Working With Wholesale Buyers

There are certain mistakes you must absolutely avoid when finding buyers for wholesale deals. They include:

  • Inadequate Market Research: You should never wholesale property without adequate market research. Thorough research helps you better understand the property and market, allowing you to price it accurately; this not only helps you attract the right buyer but also ensures you maintain a healthy profit margin. Market research also helps you identify property types in demand so you can focus your lead-generation efforts more effectively. Additionally, understanding your competition allows you to take strategic steps to gain a competitive edge.
  • Overestimating The ARV: Overestimating the potential ARV of a wholesaling property can cause you to overprice its sale price, consequently scaring potential cash buyers away.
  • Failure To Vet The Buyer: As mentioned, wholesale buyers aren't equal, and some are inherently better for your projects than others. Therefore, it’s incredibly important you vet each potential buyer to avoid entangling yourself with those who'll waste your time. Assess prospects for liquidity to eliminate the likelihood of failed real estate deals and wasted time. Also, evaluate their real estate investing experience, decisiveness, and communication skills.
  • Failing To Build Relationships: Failing to build relationships with your wholesaling buyers limits your future opportunities. So, make a point to cultivate good relationships with your current cash buyers list. They could be repeat buyers or even offer you cash buyer referrals. Besides, by building good rapport without your cash buyers, you’ll facilitate open communication, making them comfortable enough to give you feedback that you can use to improve your overall business strategy, leading to a successful wholesaling career. Strong relationships with wholesale cash buyers also allow you to better understand their preferred property criteria; this will enable you to tailor your portfolio to meet their needs, resulting in better deals and profitability. Attend networking events, participate in discussion forums, and actively engage your buyers on social media to build relationships with them.
  • Inconsistent Follow-Up: Without follow-up, you miss out on repeat wholesale deals, which means you must generate new leads from scratch every time you're wholesaling real estate.

Understanding how to find real estate investors for wholesaling requires you to know what to look for. That said, you'll want to make sure your wholesale buyers have these qualities. Wholesale house buyers with these traits are more likely to lead to a successful deal.

Where Can I Find Wholesale Buyers Near Me?

Many wholesalers who are just starting out choose to focus specifically on their own local area before branching out into other markets. But, that means you’ll need to know how to find buyers for wholesale real estate deals who work specifically in your area; this may or may not be easy to do depending on the size of your city/town.

One method is to use the local MLS to look up cash sales in your area. You may need to enlist the help of a real estate agent if you don’t have access to the database. But this will help you find potential buyers who work in your specific area or neighborhood.

Another tactic is to attend local community events and trade shows and pass out your business card. Depending on where you live, the local REIA may cover a large territory and not your specific town. But if you attend a local meetup in your community, it will make it easier to find buyers who work in your area.

Read Also: How To Get MLS Access In 6 Ways (Even Without A License)

How To Build A Wholesale Buyers List

But locating the buyers is only half the battle. You’ll also need to vet the buyers and build a solid list to be prepared for when you land a deal. Part of the balancing act of running a wholesale real estate business is establishing a pool of buyers before you look for properties. You likely won’t have time to start from scratch after the property is under contract.

So, you'll need to do some scouting beforehand and keep a solid record of all the potential buyers you meet. Not everyone you come across will be interested or available to purchase the property you ultimately get under contract. So you’ll want to carefully vet each buyer you meet and keep the information organized and easy to access when the time comes.

Following this detailed list of questions can help you gauge each potential candidate effectively:

  • What is your name?
  • What is your phone number and email address?
  • What are your purchasing criteria?
  • How do you finance deals? (cash, hard money, etc.)
  • Do you have a particular budget?
  • What kinds of properties do you buy?
  • What locations do you work in?
  • How soon are you looking to make a purchase?

These questions are fundamental, but you can certainly customize them to align with your unique process. The way you choose to organize this collected data is equally important. You might opt for a basic spreadsheet or consider investing in professional CRM software specifically designed for wholesaling.

You can adjust these questions and add more to meet your specific process, but this is the basic type of data you want to collect. You should also consider how you plan on organizing the data. You could just use a basic spreadsheet, or you may want to invest in professional CRM software for wholesaling.

A CRM is a program that has features that make it easier to organize data and reach out to leads. These features can help ease the process if you're compiling a large amount of information. It’s up to you to decide what works best, but the smoother you make this process, the easier it will be to find a buyer when you have a deal.

Read Also: [FREE SCRIPT] How To Talk To Cash Buyers & Find Their Buying Criteria


*To get a more in-depth understanding of this process and enhance your skills in dealing with cash buyers for wholesaling, don't miss out on our insightful video, How To Talk To Cash Buyers For Wholesaling (FREE SCRIPT)! It provides valuable tips and strategies to help you navigate these conversations effectively!


Where Can I Find A Free Buyers List?

If you want to save yourself the time and energy of building your own list from scratch, there are ways you can get a buyers' list for free. Learning how to find buyers for wholesale real estate deals for free is as simple as searching websites that cater to wholesalers and real estate investors. They often provide free resources for investors, including a list of cash buyers along with their contact information.

You may be required to provide your email address or sign up for a newsletter. But this can be a good way to get a few free leads. Be aware that some of these sites may only offer a free sample and expect you to pay for any additional information. But this can be a good place to start if you’re stuck and don’t quite know how to find buyers for your wholesale deals.

Finding Wholesale Cash Buyers: Google Ninja Trick

Search keywords on Google that motivated sellers typically type in. You will type those keywords in and include your location information in Google to find cash buyers in your area and online. So, to find cash buyers online for free, you only need to pretend you're a motivated seller.

This strategy is what our company, Real Estate Skills, has coined the "Google Ninja Trick."

We have a downloadable resource that you'll be able to download with all the words that you can type in to find these cash buyers; all you have to do is search in your area. And then you'll be able to find these cash buyers in your area in literally one minute or less. It's that simple.

Download the Google Ninja Trick Resource For Finding Cash Buyers here (this includes all of the BEST Motivated Seller Keywords & Phrases you want to use to Find Cash Buyers)!

Real Estate Community Groups

Another strategy you can use is to go to social media community groups like Facebook. For example, you can find a variety of real estate investor groups there. What you would be looking for are posts from people who are looking for buyers.

These interested buyers would mostly send their email or contact details in a direct message, or they would comment on that particular post. You can then use that information and scrape their contact details to create a buyers list of your own and put it in your CRM to keep this data organized; this may take a little bit of time and dedication, but it is a simple process to build up your buyers list for free.

What Is The Difference Between A Wholesale Buyer And A Wholesaler?

Remember, there’s a big difference between wholesale buyers and regular wholesalers. A wholesaler is responsible for locating the deal and getting the property under contract. After that, they will turn it over to the wholesale buyer, who will retain ownership. The wholesale buyer is typically an investor who will purchase and renovate the property for sale to local home buyers.

A wholesaler will never actually own the property; they will simply secure the purchase price and then flip the contract to the other investor. The wholesale buyer will take possession of the property and be responsible for the heavy lifting required to renovate it to market standards. So, while they are both involved in the same general process, the roles and responsibilities of each party are completely different.

What Are The Benefits Of Working With A Wholesale Buyer?

The benefit of learning how to find real estate investors for wholesaling is mainly that you can earn a sizeable assignment fee without taking on as much risk. Wholesalers never actually purchase the property, which means you don’t need good credit or money in the bank to get started. Plus, you’re not responsible for the renovations or paying any carrying costs associated with owning the property, which brings additional risks. As a result, the earning potential for a wholesale buyer is much higher. But it’s more time-consuming and requires more work and careful planning as well.

Wholesaling is a great technique for beginners who want to learn about the process of investing in real estate but aren’t quite ready to jump into buying property. Working with a wholesale buyer allows you to gain experience from a seasoned investor while potentially earning large fees. Plus, it doesn’t require a full-time commitment, which makes it great for those with a nine-to-five job who want to earn additional income on the side.

Final Thoughts On Finding Wholesale Buyers

Finding wholesale buyers isn’t difficult, but it does require patience and dedication. You may have to face a fair amount of rejection and try multiple methods to build a solid buyer’s list. Use the techniques discussed in this article to get you started. You’ll have to develop a system that works for you if you want to be successful. So, you should try as many different methods as possible and decide what works best for you and your wholesale business.

The Real Estate Skills Pro Wholesaler Program is world-class and designed to teach you how to find buyers for wholesale real estate deals. Check it out for yourself with our FREE online training to see why thousands of new and experienced real estate entrepreneurs are learning to wholesale and flip houses successfully with Real Estate Skills!


*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.


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