Marketing to Cash Buyers
When you begin marketing to cash buyers, there are several ways you may want to go about doing it. You could set up a direct mail campaign or even send a postcard with some jazzy marketing hoopla. Of course, there’s also the option of using bandit signs, which our students have found to be wildly successful. As you can see, there are a number of ways that you can market to cash buyers, but before you begin your marketing campaign, whichever way you choose to structure it, it is important to know the mindset of a cash buyer. Over the years I have had the pleasure of working closely with several cash buyers on projects, and I’m going to share a unique look into the day and life of a cash buyer so you can have a better understanding of just who they are. When you know who your client is, you will better understand how to solve their “problem,” and marketing is all about letting your client know that YOU are the solution to their problem.
First of all, cash buyers are busy! They are on a timeline and they are moving as quickly as they can to get from point “A” to point “B,” and they do NOT like to waste time when they are working. A cash buyer usually has a time frame in which he needs to complete his “fix and flip” project, and he sets his days, weeks and months to be as efficient as possible. You won’t find a cash buyer lollygagging on social media or strolling through the mall. Cash buyers are precise and focused in their daily routine. They have their job planned from start to finish, and they know the specifics of how long each task should take to accomplish in order to move on to the next task. When you create a marketing piece or if you are simply calling a cash buyer, keep this in mind: Let them know that you are aware of how busy they are and that you respect their focus. If you can tell they are too busy to talk to you, don’t be offended. Instead, offer to call them back at a more convenient time for them. **Hint Hint…this is an excellent way to illustrate to a cash buyer just how valuable you are to them. Also, let them know you will be finding them properties so they can stay focused on what they do best, flipping properties! Can you see how you can show them that you are the “SOLUTION” to their problem…? Even if they didn’t know it was a problem…? Yep, that’s called marketing!**
Next, remember that a cash buyer is all about his bottom line. He is good at what he does because he knows how to walk through a property, put together a budget for the property, and stick to it so that he can make a profit. A cash buyer has a box that he must stay in with each project. It’s not emotional; it’s all business. If the numbers don’t work, the answer is “no.” There is no need to take anything personal; it’s just the way he runs his numbers. The better you know how he runs his numbers, the more valuable you will become to him. A cash buyer also knows that there will always be little things that pop up that weren’t accounted for in the budget. However, a cash buyer will usually have given himself enough room on his profit to have a little cushion. When he is negotiating a deal, he is firm but flexible. He knows that getting a deal is better than not getting a deal. He also knows that he has competition, and he’s always on top of his game to put together an aggressive offer.
A cash buyer is also a master of project management. He knows where his time is best spent and what projects to leave to his experts. As he dives into a project, he is able to see where he can save a little time and money and then invests that time and money into something else that may have not been in his original plans. Any little details you can suggest might make you an invaluable part of his process. When developing rapport with a cash buyer, make sure you let them know you understand how important HIS bottom line is to you and that you will be negotiating aggressively to find him a smokin’ hot deal.