Justin Wilmot explains how retail cash buyers can be a gold mine for your wholesaling business.
Justin lets us in on how and where he looks for these retail cash buyers, including what to say to them.
Mike: Welcome back to the flipnerd.com REI Classroom where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Justin: How are you doing? My name is Justin Wilmont, and I will be your host today for today’s REI Classroom. And today we’ll be talking about the wholesaler’s goldmine: retail cash investors.
Mike: This show was sponsored by passiverental.com.
Justin: All right. Today I want to talk to you about the “Holy Grail” for a wholesaler in the seller’s market. And for us, that’s been retail cash investors, and they’re in droves right now. I kind of compare it to this when I talk to people, in a down market, there’s more motivated sellers, and there’s more opportunity for discounted properties, still is today. But it’s easy to flip it over to any kind of fix and flip guy, or redeveloper.
But what we’ve been focusing on more lately, and this is a really good tip, because this is something that has really made a huge impact on our business. We focus primarily on retail cash investors, and finding the kind of product that we can provide them. They’re easy to find, they’re typically non-entities, they’re typically currently buying foreclosures in your current market.
Anybody that’s buying REO’s right now in my opinion, they’re not typically getting a very good deal, typically paying retail, depending on if it was on the MLS or not. And so what we do is look for those people, and see what kind of value we can provide to them. They’re not difficult to find, it’s just making the calls, following up, building a relationship, and figuring out what the pulse is.
What we like to do, is when we go into a particular market, if it’s a new market, or even our existing farm markets, retail cash buyers are always evolving, they’re always pouring into the markets on a daily basis; you can never run out of them. And so we make an objective to continually, and repetitively find who’s coming in the market, and who’s recently made a decision to start putting their money into real estate – taking out a CD, the Money Markets, the IRA’s, wherever it may be, and putting it into real estate, because they feel comfortable.
And anybody that’s buying multiple properties in your target market that are REO’s, or distressed that were on the MLS, and they’re paying cash in, they’re not doing it in a trust or an LLC, that’s somebody that you can help as a wholesaler. Definitely keep this in mind, retail cash investors can completely change your business model if you’re a wholesaler, and have a much more dependable business rather than just trying to always get deeply, deeply discounted properties in a seller’s market where technology, anybody can ask their phone, and 10 seconds have a general idea of what their property is worth in conjunction with knowing that it’s a seller’s market. I hope this tip has helped you, and go out there, and make some money.
Mike: Passiverental.com is your source for turn-key, done for you rental properties. If you’d like to be an investor, and not a landlord, please visit passiverental.com, to learn how to purchase cash-flowing, professionally managed rental properties in the hottest rental markets across the country. We can also help connect you with financing for your next property. Invest the easy way today, and get started by visiting passiverental.com.
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