By: Jamel Gibbs
Copyright © REI Education Academy LLC
In the first article in this series we discussed the importance of building your team and also the tools you will need in order to move forward in wholesaling bank owned houses. We also discussed the importance of finding your cash buyers first when you are wholesaling REO houses.
In this article, the second installment of our “How to Wholesale REO Houses” series I will show you how to find cash buyers and also what you need from these cash buyers in order to be effective when you are finding reo houses that meet their criteria.
Keep in mind that this is one of the most important steps in the process. The reason for this is because the cash buyers are the lifeblood of your REO wholesaling business. They will allow you the opportunity to make this process work with none of your own money or credit, as you will see throughout this article series.
You also want to remember that your target cash buyers will be rehabbers and landlords. Rehabbers will be looking to buy, fix and sell properties and landlords will be looking to buy, fix and rent the properties. In the current market there are more landlord buyers than any other kind of real estate buyer available.
There are many different ways to find cash buyers, but I will provide you with 2 different ways that you can implement with very little expense on your part.
Here’s how you find these cash buyers:
- Post Craigslist Ads- these won’t cost you a dime. All you have to do is post an ad on craigslist that will explain what you are looking to do and how you can help out the potential cash buyers to find great deals. You can get the same letter that I use in my business by visiting the link below. Keep in mind that you will receive that letter during the second installment of the video series provided.
- Hang bandit signs- this is by far the fastest and easiest way to find a ton of cash buyers fast. All you have to do is get some blank 18×24 yellow corrugated plastic signs and hand write the following message on them:
3 Bed / 2 Ba CHEAP!
You can get a free Google voice number to add to the sign and call it a day. If you hang 50 to 100 signs your phone will ring off the hook.
Once the cash buyers start to contact you, you will want to find out the following information from them:
- What type of properties are you currently buying?
- What areas have you recently purchased properties in?
- What price range do you currently purchase properties in?
- How fast can you close?
Once you have the answers to these questions you will be ready to move onto the next step, which is to start finding properties. In the next article I will show you how to start finding REO properties without spending a dime.
In the meantime, you should start searching for cash buyers and implementing the strategies discussed in this article series.