Being a true cash buyer has its advantages when you’re working with sellers and wholesalers. Branding yourself as a reputable, trusting cash buyer is key so that when your name is brought up, nothing but good is mentioned.
Word of mouth goes far in the the real estate investing industry. Word travels fast through small local communities, both good and bad.
Build a brand that represents who you are as an investor. From your marketing to your rapport with sellers to your follow up, it all comes together in a package of what people think of when they hear your name.
Whether you’re a new investor or have already closed on a few deals, it’s important to consider how you’re coming off to other people. Not only do you want to be known as the local expert, but you want sellers to know that you’re a serious buyer who can close quickly.
Showcase Yourself as the Local Expert
This is easier if you’re investing where you live as you already know about the market, generally. You also need to know what investment properties are going for in the area. Depending on the market, wholesalers are typically picking up properties anywhere from 70-80% of ARV.
Keep an eye on the market so that when there are shifts, you’re ahead of the game and can adjust your business plan accordingly.
Some good questions to always consider:
- Are there hot areas that people are trying to move to?
- Are people renting or purchasing in a particular area?
- How extensive are the repairs needed? (If repairs aren’t extensive, you might be able to repair just enough for it to go on the MLS and be sold at retail.)
Have a solid marketing plan with a clean logo, clear message, and easy to navigate website. Make it easy for people to learn about your business and contact you. When sending out marketing materials, follow up steadily over multiple months as the seller might not be ready to talk to anyone when your first piece was sent out.
Read: Setting Up Your First Direct Mail Campaign
When Meeting with Sellers…
You have roughly an hour or so to build trust with a motivated seller during an appointment. What you say and do leading up to the appointment, during the appointment, and after the appointment is critical. These sellers are a lot of times meeting with multiple investors and you need to stand out as the clear choice on who to go with.
Sometimes it’s your offer that has them choosing you, but that’s not always the case. It’s an emotional time in the seller’s life and if you explain that you can be a solution to their situation and that you can make the process go smoothly, that very well might be the tipping point on them choosing you over other investors.
People want to work with people they trust. Sellers may be willing to take a lower offer if they’re more comfortable with you and confident that you’ll perform.
If the house is in distress, let them know you will buy it as-is and they don’t have to worry about the condition. You also have people who can fix it up.
For sellers who have liens, let them know your title company can research them and will contact the lienholder to settle them. The settlement will be paid before the closing with your funds and it won’t cost them any money out of pocket. You can also offer to clean out the property if they want to walk away without moving everything out.
By going above and beyond, you’re letting the seller know you truly are there to be a solution for them and want to help make it an easy process.
Wholesalers are always looking for cash buyers. They know you can close quickly and are likely to bring you more deals if all goes well.
If you are a “true” cash buyer with liquid funds, you have the power to set strict criteria in what you’re looking for. Be clear and upfront with what your criteria is and remind them of the benefits of bringing you the right deal.
The quicker a wholesaler can close a deal, the quicker they can move onto the next deal. If you can be the solution to this, you’re invaluable.
When you find a deal that works, follow through and get the deal closed quickly and without hassle. If done right, you’ll find yourself with a few wholesalers who are repeatedly bringing you deals and it’s a win-win for both parties.
Be Aware of the Brand You’re Building
Every action you take and every word you say reinforces your brand. Follow the golden rule and think before you speak. Take a step back and analyze the message you’re sending to others.
You can spend years building your brand to perfection and with a few missteps, your foundation can crumble.