The Cash Buyer Masterclass | Real Estate Wholesaling

As a real estate wholesaler, you must have end buyers for the contracts you lock up, or you're not going to make any money. Getting contracts locked up is only half the battle, as you still need to get it sold in order to make your check. In this video, I'm going to tell you about the 4 main types of buyers for wholesale deals and exactly where you can find them. And if you stay until the end, I'm also going to throw in a 5th type of buyer that is not only the easiest to find, but also consistently pays the most amount of money for wholesale deals. The first buyer you're going to want to get added to your buyers list are going to be realtors. While most realtors won't actually be your end buyer, they will have clients they can show your deals to. A lot of landlords and flippers will have a specific realtor they use to find all of their deals, and you're going to want to find those realtors and get them on your list. Now, in order to find these realtors, you're going to want to hop on Zillow and go to the market you're looking to find buyers in. Search for recently sold homes and also look at homes that are pending. On Zillow, you will be able to find the realtor who sold or is selling the home. Google their name, get their phone number, and call them up and see if they work with any investors who are looking to buy off-market discounted real estate with cash or hard money. Now, if they say yes, get their information and let them know you will start sending them any new deal you get. Make sure to ask them if any of their buyers have any specific types of properties they are looking for. For instance, maybe a realtor has an investor they work with that is only looking for duplexes in a specific zip code. You're going to want to get— make note of all this information. So you can start specifically targeting those types of properties. The second type of buyer you will be selling your wholesale deals to are flippers. Flippers are investors who buy properties, renovate them, and then immediately list them on the market for a quick profit. These are going to be your bread and butter buyers who you're going to sell the majority of your deals to. And you can find flippers in several different ways. The first is to attend local real estate investor meetups. Meetups like this occur multiple times every month in bigger metropolitan areas. You can find information on when and where these meetups are in real estate investor Facebook groups. In order to find real estate investor Facebook groups, all you have to do is search on Facebook real estate investors and then the name of the city or the state that you're looking to find buyers in. Join as many of these groups as you can and stay up to date with when the meetups are. And also look out for the groups for people posting about deals they're buying or deals they're looking to buy. The third type of buyer you're going to be looking to assign your deals to are landlords. These are long-term holders of real estate who buy properties to rent out to tenants. You can find them the same exact way you find flippers. Now, when you're talking with the landlord, ask them what kind of properties they're looking for and what kind of return they're expecting on their investments. A lot of landlords abide by something called the 1% rule. The 1% rule in real estate is you want your property to rent out for 1% of the total purchase price every single month. So in order for one of these landlords to buy your house for, let's say, $100,000, the property needs to rent out for $1,000 a month. Now, most landlords are very particular about where they buy properties. Some will only buy in certain towns, some will only buy in specific zip codes, some only in specific neighborhoods, and some will even only buy on specific streets. Find out exactly where and what kind of properties they're looking for so you can start sending them deals that fit their buying criteria. Now, the fourth type of buyer that commonly will buy wholesale deals are hedge funds. Hedge funds can be some of the best and the worst buyers. They can be the best because their buy boxes are usually very clearly defined. They're going to have set expectations about the the size of the property, the year built, the lot size, and the locations that they buy. However, they can also be the worst because oftentimes working with them can be a huge pain in the butt. They have very specific processes that you need to follow to sell them deals, and they oftentimes aren't able to close quickly due to extensive inspections that they require. Finding hedge funds looking to buy single-family homes from wholesalers is also a huge challenge. There are some that are easy to find. For instance, a hedge fund that I've sold plenty of deals to is called SFR3. You can go to their website, type in any address, and it will immediately tell you if it's a house they would be interested in buying. But most hedge funds are very tough to find, and they only work with specific wholesalers. The best way to find these hedge funds is by attending the types of events and conferences that their representatives hang out at. For instance, the Information Management Network forums. Those are the 4 main types of buyers for your wholesale deals. Start networking with them today so that you will have a solid buyers list for your future wholesale deals. And one thing you're going to find is a lot of these people are going to overlap. You will find some realtors who are also landlords, or maybe some flippers who are also landlords. Make sure to take note of exactly the types of properties they're looking for so you're only sending them stuff that they will be interested in buying. Now, the bonus type of buyer that I'm going to tell you about is the best type of buyer I have ever worked with. Not only are they incredibly easy to find, but they also pay so much more money for properties than the other 4 types of buyers. The 5th buyer for your wholesale deals are going to be retail buyers. These are just regular people looking to buy houses to live in. They aren't looking to make a profit on the deal, so that leaves way more room for you to make more money, and it also allows you to potentially offer the seller much more money. Retail buyers are so easy to find because all you have to do is list your wholesale deal on the MLS. The MLS is the Multiple Listing Service, and it's what realtors use to list their properties. Now, the caveat to selling your deals to this type of buyer is that the process is slightly different than it is with the other types of buyers. You can only sell deals to retail buyers if you have what's called novation agreement signed. A novation agreement is a standard real estate agreement that allows you to replace one contract in favor of a new one. This is crucial because a regular wholesale contract will not allow you to sell deals to retail buyers. The reason why is because retail buyers are buying properties using conventional financing like bank loans, and banks won't pay assignment fees. You're also going to have to get some other paperwork signed in order to get the property listed on the MLS. Now, despite having to get these extra agreements signed, my company is seeing massive success by doing these novation deals and selling all of our wholesale deals to retail buyers. If you want to learn exactly how to pitch this type of deal to your seller leads, get access to all the contracts and other documents required, and learn how to get your wholesale deals on the MLS and sold to retail buyers who are paying top dollar for properties, then go ahead and watch my free novation training at www.wholesalingv2.com. We call it Wholesaling V2 because this is honestly the future of wholesaling real estate. It allows you to offer more money to people. It allows you to provide cheaper housing to families in need, and it's going to allow you to make yourself way more money. Guys, if I missed any other buyers that you guys are selling deals to, let me know down below in the comments. And if you found this video helpful, I would so, so appreciate it if you would hit the like button and subscribe to the channel. As always, guys, thank you for watching and I will see you on the next one.