The smartest investors keep two things in mind when selling property: Money is king. Second, investors need lots of buyers. Usually, this entails looking beyond a standard buyers list to sell a house for profit. While a buyers list is great for wholesalers, it’s not the only option to discover cash buyers for houses.
If you’re interested, you’ll need to use additional tactics besides your trusted buyer’s list. Continue reading for cash buying alternatives that even rookie investors can use.
Benefits Of Cash Buyers
Many real estate investors prefer “cash buyers” Cash can simplify a real estate deal and speed up closing timeframes. There is no loan approval process for cash purchasers. This might cut weeks off the closing date because purchasers aren’t submitting applications and discussing financing terms. Investors will locate cash purchasers willing to offer and close a deal. A faster closing can benefit investors regardless of their exit option.
By not needing a mortgage, cash purchasers streamline real estate transactions. Traditional lenders may be wary of properties with permit or title concerns. Cash buyers can decide if they want to handle these concerns. Also, lenders often request a property inspection and appraisal, leading to more back-and-forth between buyer and seller.
The Cons Of Cash Buyers
There must be a catch to cash purchasers, right? There are a few downsides to consider. Cash offers are generally below market price. Cash transactions are generally faster, so the price must be lowered to benefit both parties. While cash offers aren’t low, they’re virtually always lower than a traditional transaction.
The authenticity of cash offers is another issue. Verify with the customer if they have the money they say they do. You can accomplish this by requesting a bank statement or asset list. This helps you avoid bogus or undervalued offerings and get to the good stuff.
Find Cash Buyers Outside The Box
Cash purchasers aren’t limited by age or sector. Anyone with extra cash who wants to buy real estate might be a lead. Therefore, limiting your search to a single buyers list ignores the limitless potential all around us. Instead of wholesaling to a single list, explore “outside the box” for cash purchasers for real estate purchases.
If you can find cash buyers, you’re ahead. If you need ideas, the list below should help:
Realty Auctions
Real estate investors still go to auctions for deals. They have cash and are ready to go fast. Many are outbid by entrenched players who dominate local auctions or others who spend too much. Most leave auctions with cash. Introduce yourself at auctions. You have deals. They can usually get better deals. Share the benefits of working with you.
Home Signs
Personal property signs are exactly what they sound like: signs placed on a subject property with the goal of selling it. Like bandit signs, personal property signs link buyers to your contact info.
In addition to giving a mechanism for customers to contact you, personal property signs are overtly promotional. Bandit signs usually say “we buy houses for cash,” whereas personal property signs say “home for sale.”
Tax Assessor Site
Finding cash purchasers can be as simple or complex as you make it; sometimes it’s as easy as visiting a tax assessor’s website. If you need cash purchasers, visit a local tax assessor’s website. Look for ownership information that may indicate purchasing intent. You should give investor-owned properties additional consideration because they are more likely to be cash buyers for your own house. A few clues indicate that an investor owns a residence.