Who Has the Best Cash Buyers List? Realtors? No Way!
From Tom Nardone, Millionaire Mailman …
Way! The last few properties I have wholesaled have been by adding Realtors to my M5 system who have brought a cash buyer to the closing table in the last 6 months.
Investors who have to rely on Realtors to find them deals will usually pay higher prices for investment properties.
This is because the investor buyers do not possess the skills that investors like you and I have.
Or it could be that cash buyers working through Realtors do not want to take the time to do the marketing and incur the expense that is necessary to find your own wholesale deals.
If your target market is in a city where the hedge funds are buying, then this is totally true.
Some hedge funds do not care to have a marketing department to find deals, and therefore they just pay slightly below retail for the property they buy.
You cannot always know what a buyer’s business model is!
If a buyer has a business model of holding properties for 5 years till they appreciate, then they can afford to pay more… especially if they are a big money fund.
Big money funds often get paid for placing the millions of dollars they put out on the street and not necessarily for how smart or cheaply they can buy each single property.
Big money makes stupid buying decisions from the street level view of things.
What I have discovered is, although I like a healthy list of cash buyers, a list of investors just like me is not my favorite buyers!
This is because investors just like me want to try to steal my deal for close to the same price I have it for. That sucks to have negotiated a great deal with a seller – and now have to negotiate again with another buyer who is a clone of myself.
Therefore, what I have discovered is – a healthy list of Realtors who have brought cash buyers to the closing table in the last 6 months may be the highest price paying buyers you can find anywhere!
In other words, those buyers who are relying on Realtors to bring them deals.
In many cases, I can sell the property for just 10% to 20% below the market to a Realtor’s cash buyer and net a higher profit from the transaction than if I sold it to a cash buyer clone of myself, and still be able to pay 3% to the Realtor who brought the cash buyer.
You should be able to have a Realtor on your power team who can pull the Realtor cash buyers from the MLS for you.
Call those Realtors and say that you see they had a cash buyer closing recently and tell them about your “OFF MARKET” property.
Many of the Realtors will jump at the chance to show it to their clients.
Have a window of about 2 hours to be at the property and invite them all over to see it with the cash buyer clients and take the highest and best offer.
If you follow this method, you will certainly net higher profits, and you will have an easier job of holding the buyers' hand to the closing, because the Realtor will help you with the hand holding in order to get his/her commission.
Try it! It’s a better way!
Enjoy the Journey,
Lemme hear from you
Have you established a Realtor relationship like this? Tell me about it in the comments section below.