Cash Buyers For Real Estate Wholesale – How To Find Buyers For Wholesaling

The buying process in the wholesale market is complicated. It takes a long time, a lot of terms and conditions have to be met, papers have to be signed, and there are multiple decision-makers that need to finalize the deal. In the real estate wholesale market, closing deals as soon as possible is how a business is able to grow. With cash buyers, that is possible.

So in this article, we will discuss what is real estate wholesaling is, who are cash buyers, how to find buyers for wholesaling in real estate, and the tips you need to scale your e-commerce realtor wholesale business. Find out how you can go from starting a small wholesale business to becoming a successful realtor through the power of e-commerce.

What Is Real Estate Wholesale Business?

There are three parts in the real estate wholesale business. There is the homeowner looking to sell, the buyer or investor looking to buy distressed property, and the middleman known as the real estate wholesaler. 

Real Estate Wholesaler – The Middle Man

The wholesaler is the integral part here. They are the ones that are negotiating with both buyers and sellers, just like in any other market. For example, a toy wholesaler will have to buy the product from the manufacturer and then resell it to retailers. That is the same in real estate.

Homeowners – The Real Estate Wholesale Sellers

First, the wholesaler looks for clients that want to sell their homes. They might want to sell because they are moving or they don’t want to take care of the distressed property. Whatever is the case, they want to sell the house as soon as possible. In traditional real estate, this might take months to years, which the homeowner does not have time for. So instead, the wholesaler tries to find a buyer within a shorter time frame to help the homeowner.

Buyers And Investors – The Real Estate Wholesale Buyers

Potential buyers are looking to buy either a single home or a number of homes. But they are willing to either live or take care of the property, which the original homeowners don’t want. So a real estate wholesaler contacts such buyers and negotiates the price.

Price, Negotiation And Closing

Once a buyer is found, the negotiation phase starts. Here, the wholesaler is trying to sell the distressed property. The price of a wholesale real estate is where it gets interesting. The homeowner has the rights but they want to sell the property as quickly as possible. They list their price to the wholesaler and come to an agreement for the price. This price is usually slightly lower than the market price because of the speed needed to sell the house. 

But once the wholesalers are looking for the buyers, they will quote a higher price than the ones that the homeowners are looking for. This is where wholesalers add value and make money. They markup the price to the buyers because the difference between the homeowners’ price and the actual selling price is where the wholesaler is making their money. 

Most of the time, it is not a lot. Since speed is a factor, charging too high would mean potential buyers will look elsewhere. So usually, the price is around 5-10% markup of the homeowners’ quoted price.

Once a price is settled on, the wholesaler has to act quickly. A closing attorney is needed to help go over the contract and settle the change in ownership of the house. Once that is done, you have successfully completed a wholesale real estate deal.

Who Are Cash Buyers In The Wholesale Market?

Wholesaling real estate means you have to do it fast. The owners of distressed properties are looking to sell it as fast as possible. Therefore, you need to find a buyer that is willing to buy it as quickly as possible. That is what a cash buyer is.

Cash buyers are buyers who have access to readily available cash to quickly buy a house. That means they don’t have to get a loan approved to buy the property. This quickens up the process and ensures that the real estate deal is done swifty.

Other than needing to sell the house quickly, there are reasons why a real estate wholesaler wants to sell the property quickly. As mentioned above, wholesalers make their profits from selling as many distressed properties as possible. As they are selling at a steep margin, the more houses sold means better business for the wholesaler. Therefore, a cash buyer is essential so a real estate wholesaler gets to sell as many properties as possible. 

How To Find Buyers For Wholesaling Using These 8 Sources

Finding someone financially able to quickly buy a property is difficult. So how to find buyers for wholesaling real estate properties? The main criteria of getting cash buyers is building a good relationship with the ones who are in contact with cash buyers. So here are places you can find cash buyers easily: 

Source#1 Property Auctions

To start off, property auctions are a place where you can easily find cash buyers. They are events where properties are sold to the highest bidders. Events such as these are looking for buyers who can readily buy properties, so cash buyers are bound to pop by here looking for properties to purchase. 

To approach cash buyers at property auctions, you need to be a regular so people recognize who you are. That makes it easy to approach cash buyers and share information about potential real estate deals. Arrive early and engage in conversation with cash buyers and exchange information. You will know who they are once you have attended a few auctions and see familiar faces frequently buying properties. Build up a meaningful relationship with them and you can add them on your cash buyers list and to sell houses you are working on as a wholesaler.

Source#2 Real Estate Agents

Real estate agents are a treasure trove of potential cash buyers. They are licensed professionals who assist buyers and sellers of property. Some real estate agents work exclusively with cash buyers. With their knowledge and network, you can utilize their cash buyers’ list and add it to yours.

Start by identifying agents who have experience with investment properties. Approach them and lay out your business model to them and mention how you are looking for cash buyers. A sure-fire way to get new cash buyers from these agents is to offer up a property to sell in exchange. This helps build a mutually beneficial relationship with the agents and they will be more inclined to share their cash buyers to you.

Source#3 Local REIA

The Real Estate Investor Associations (REIA) is a group that brings together everyone in real estate. This includes wholesalers, landlords, house flippers; all of whom are looking for cash buyers. Events hosted by your local REIAs are your best bet in finding a cash buyer.

What you need to do is be at the events in your local REIA. Just like in auctions, you need to build a relationship with the people in these events and be on the lookout for relevant information about cash buyers. Exchange contact information with the event goers and make sure to be credible about your information as well. Soon, you will have a list of cash buyers in hand.

Source#4 Closing Attorneys

As mentioned above, closing attorneys are a great way to close out deals for real estate wholesalers. That also means they work closely with cash buyers when closing on real estate deals. As a result, they become a valuable resource for finding potential cash buyers.

To connect with closing attorneys, make sure you work with them when closing your deals. Explain to them your business and offer them a percentage of sales for their help in closing deals. Reach out to the ones who are eager to work with you. Not only will you have a new list of cash buyers from their network, but you also get an attorney who you can work with to close deals as fast as possible.

Source#5 Serial Landlords

Serial landlords are real estate investors. They own multiple properties for rent and are constantly on the lookout for new properties to expand their portfolio so they are potent cash buyers. Due to their experience in real estate, you can be sure approaching them as cash buyers is a fruitful endeavor. 

To approach serial landlords, start by identifying those who own multiple rental properties in your area. You can find this information through public records or by networking with other real estate professionals. Once you have a list, reach out to them with information about your wholesale deals. Make sure they understand the value proposition of getting new properties for rent and purchasing from you means they get properties at a great price. 

Source#6 Property Management Companies

Property management companies handle the day-to-day operations of rental properties for landlords. This means they are in contact with a diverse buyers list, where cash buyers are also included. This makes a property management company a good source of information on who cash buyers.

To find cash buyers through property management companies, start by reaching out to companies that manage multiple properties in your area. Explain your business model and offer to share your insight in the market. Companies like these are much harder to get a buyers’ list from, which is why building up a proper business relationship is important. If successful, you now have a cash buyer list for a variety of properties.

Source#7 Bandit Signs

Bandit signs are small roadside signs used to advertise real estate deals. They are typically placed in high-traffic areas and feature simple, These signs are an effective and affordable way to reach potential cash buyers who may be driving through the area. The goal is to attract the attention of serious investors who are ready to make cash offers.

If you are out and about, you might have noticed signs with attention-grabbing messages such as “We Buy Houses for Cash” or “Cheap Properties for Sale.” These are called bandit signs, advertising real estate deals. The ones behind the signs are cash buyers looking for the next real estate deals to buy for their portfolio.

To start, contact the buyer and ask them about the types of houses they are trying to buy. If any matches with the type of property you are wholesaling, then you can easily strike up a deal. You could also use bandit signs of your own, where instead you advertise looking for buyers. Make sure the signs are clear, easy to read, and include your contact information. When potential buyers call, be prepared to provide details about your wholesale properties and how they can benefit from purchasing them. 

Just remember, bandit signs are unverified and unregulated. So you need to be extra careful with who you are doing business with. Make sure to do a thorough background check after getting into contact with them so you can verify them as legitimate buyers. Only then should you conduct business with them.

Source#8 Public Records

Public records are official documents filed with government agencies that provide details about property transactions, including sales, mortgages, and ownership changes. These records are accessible to the public and can be a valuable resource for finding cash buyers. By examining property sales records, you can identify transactions that were completed without financing, indicating a cash purchase. 

Public records might seem like an unlikely place to find information on cash buyers, but it matters on what you are looking for. These are official documents filled with government agencies that provide information on property transactions and ownership changes. Public records can be found at local county offices, online databases, and through various real estate information services.

Start by looking for recent properties that have been sold or had their ownerships changed in your local area. What you need to notice is a pattern where one buyer is closing multiple deals. That is your cash buyer who you need to reach out to.  You can contact them through direct mail, email, or phone calls. When approaching them, make you put the value proposition of your wholesaling first to get them to invest in the properties you are handling. With that, you have a new list of buyers through publicly available information.

Source#9 Online Real Estate Listing

Having the properties you are selling listed on popular real estate websites. Potential cash buyers looking to purchase your properties will end up contacting you. Online listing increases your visibility and has buyers coming to you instead of you finding them. You can also have your wholesaling website where you can list properties that you are trying to find buyers for. Just remember to verify all buyers before meeting up with them or finalizing the deal.

Source#10 Social Media And Online Forums

Last but not least, you have the wealth of information on the internet through social media and online real estate forums. Popular social media sites have groups where you can easily find cash buyers for your wholesaling business.

Join groups and search through filters for buyers. Once you have a list, you can then contact them and ask them information on the type of properties they are looking to buy. When one matches the type of property you are selling, approach them about it and gauge their interest in purchasing such a property. In no time, you will have a new list of potential cash buyers.

If you are also active on these groups and online forums, you can build a reputation with buyers who come to these places looking for properties to buy. Post regularly about the properties you are selling and the cash buyers will come to you. Message them personally so you can talk in detail to help close out the deals.

Compliment Your Wholesale Business With A Bulk Order App On Shopify

Wholesaling real estate means you have to be always on the move. With the emergence of e-commerce, you can open up an online store on platforms like Shopify to start listing your properties by yourself. However, since you are selling a property, you need to compliment it so you can raise the value proposition for the properties you are selling. 

Here is a bulk order app on Shopify. Using this example, I will show you how you can raise the value proposition of your properties and compliment your wholesale business with a bulk order app on Shopify:

 

You can see the store is selling candles with multiple variants all on one page. This is great for wholesaling real estate business because you can both sell the house and sell complementary goods on your store at the same time. The app allows customers to view multiple variants of a product at the same time. This encourages customers to choose the variants they want to buy. They are also able to select the quantity amount on the same page as well.

Once the customer is satisfied with their quantity selection, then the customer can add all the variant quantities with one click. This streamlines the shopping process and encourages customers to complete their purchase. 

But you will notice there is a restriction message at the bottom. This is the app’s cart minimum order quantity message. Without fulfilling the quantity, the customer cannot add the product quantities to cart. This both helps you and your customers. If you are selling bundles with specific quantities like a box of 14 candles, then the restriction makes sure the ‘add-to-cart’ button cannot be clicked until the restriction criteria is fulfilled. This reduces mistakes from the customers as they are choosing the exact quantity for the bundle. On your side, setting a minimum order quantity helps you maintain your inventory better as you are selling an amount that makes sense for your business. 

With one app, you are helping your customers by giving them complimentary home goods through your store, while also helping make the shopping experience as streamlined as possible. For you, you get to sell your products how you want thanks to the restriction options which are otherwise not available on Shopify’s native options. An app like this is perfect for real estate wholesalers to capitalize on new products to sell and expand on your customer base.

Bottom Line

Real estate wholesalers heavily rely on cash buyers to help with running their business more efficiently. But buyers are not readily available for real estate, so you need to curate a cash buyers’ list. With the sources mentioned above, I hope you now know how to find buyers for wholesaling real estate businesses and we hope you succeed in doing so.