If you are just beginning to wholesale and finally have a property under contract, what’s next? Your focus now has to turn to finding a cash buyer, as quickly as possibly, who is interested in the property for a fix-and-flip or a rental. So, how do you find this type of investor?
First, create an email brochure that includes all the information about the property: address, description, price, rehab cost, after rehab value (with comps), pictures, an action line saying, “The first person to bring a non-refundable earnest money deposit of $2,500 will get this property,” and, of course, your contact information.
Next, send a copy of the above email to all the cash buyers you have qualified. Then call and let them know you sent them an email of a deal they will be interested in and get them out to see the property. Then start marketing the property by creating bandit signs and ghost ads that have all the information on the property, except the address. When potential investors call, get their email and send them a brochure giving them the address and encouraging them to see the property.
Next, attend several real estate investor clubs and pitch the deal to everyone there. Then hand out brochures and your business card as you collect their contact information. Also, attend foreclosure auctions and let the bidders know about the deal. Then start calling landlords and pitching the deal to them. Continue by calling “We buy houses” ads online and telling those investors about the project. Follow up by calling members of the Better Business Bureau who are investors and pitch the deal to them.
Lastly, if you are fortunate enough to have Response’s real estate software, you can look up and call cash buyers to let them know about the investment opportunity. Also, contact all your friends and relatives who have money to invest and let them know about the potential profits that can be made fixing and flipping the property or holding it for rental income.
Once you have an investor interested, collect the deposit and get them to sign an Assignment of Contract agreement. Submit both the Purchase Contract and the Assignment of Contract to the escrow company, and they will basically do the rest.