If you have a short-term investment strategy in real estate, it is important that you market your property to cash buyers. You can find a property below market value, put it under contract and then resell it quickly to a cash buyer. You can make a great profit for a few days of hard work without getting your hands dirty in the usually tedious process of repairs and rehabilitation. This investment strategy is particularly recommended to newbie investors who are yet learning the ropes and can’t take a serious financial risk.
Finding a cash buyer is not difficult if you know where to look. Here are a few tips that you can implement immediately:
Cash buyers are usually experienced real estate investors. Most of them have several years of experience in property investment. They know the importance of networking and like to be part of online communities of other investors in their target areas. Finding these online communities and joining them should be your first step in your real estate investment journey. You can market the property to your online community members in your area as soon as you put a property under contract or close a profitable deal.
You should also find out if any group or body of real estate investors is active in your area. If so, you should join it. These groups organize meet-ups, seminars and other events from time to time. You should participate in these events and try to network with more experienced investors.
You can approach real estate agents, appraisers and home inspectors to build a list of buyers who bought properties for cash in your target areas over the past 6-12 months. It is quite easy to build this list because most people buy home with mortgage financing. You will find that most cash buyers are real estate investors and carry out multiple cash deals in a short amount of time in their desired neighborhoods.
Bandit signs, business cards and flyers are old marketing tricks, but they are effective even in this age of technology. Use slugs such as ‘buy home for cash’ on all your marketing collateral to draw cash buyers.
You should set up a website where you can offer to sell properties to cash buyers. You can also promote your contacted properties on social media channels and utilize online advertising platforms such as Google AdWords. Make a list of websites that publish online classified ads in your area. Look for cash buyers under the real estate category. You can also publish online classified ads to find cash buyers for your contacted properties.
These are some of the easy and most effective ways to find cash buyers. Keep in mind you should focus on building your network at the beginning of your real estate investment career. Once you are part of a network, it will become extremely easy to buy and sell investment properties through referrals.