Step no. 1 Identify the market that you wish to start investing in. This is critical as this will be the market you will start looking for cash buyers in. A real estate market can be defined in a number of ways, such as:
- City Limits
- County Limits
- Zip Codes – this is the most common
- District – in the larger and more populated cities
Step no. 2 Find realtors to help with your market research and analysis to determine the following:
Step no. 3 Find cash buyers. Here is a list of both online and physical resources you can use:
- Local real estate agents, such as Keller Williams, RE/MAX, Coldwell Banker and Berkshire Hathaway.
- Title companies, such as Chicago Title and Old Republic Title.
- Various paid websites that offer real estate software products that allow you to search county records and the Multiple Listing Service for recent purchases of real estate that were done with cash.
- County records. This can be done online or in person.
- Real Estate Investor Clubs. Make sure to search online for the local REI club in your area and attend the next meeting so you can speak with cash buyers there.
- For finding contact information, search the following websites:
Step no. 4 – The Qualifying of Cash Buyers – here is a suggested list, both scripts and questions:
RECEIVING INBOUND CALLS FROM INVESTORS
“Thanks for calling. I apologize, but I put the ad out a little premature. I haven’t got the contract accepted yet, but if this is what you are interested in I’ll call you back once I lock it up. Before I let you go, I assume you’re an investor, correct? What kind of deals are you looking for?”
MAKING OUTBOUND CALLS TO INVESTORS
“Hi, my name is [name]. I found your information online and it says you’re buying houses. I’m a real estate investor too, and I wanted to see if you have anything for sale. I can sometimes get great deals through other investors. Do you have anything available?”
QUALIFYING CASH INVESTOR QUESTIONNAIRE
Where are you investing? (City, County, Zip Codes, etc…)
What type of properties are you buying?
What property characteristics do you look for? (Beds, baths, sq ft, etc…)
What types of repairs do you typically do on your properties?
What is your maximum purchase price?
How much profit do you need?
How many deals can you handle per month?