Every investor knows the tangible benefits of buying a property with cash. Leveraging other people’s money is nothing short of advantageous, and one of the best strategies investors can use to beat out the competition. It is worth noting, however, that buyers aren’t the only people who covet cash. Sellers, for what it’s worth, stand to benefit just as much from a cash transaction, if not more so. Therefore, if you are trying to sell a deal, it may be in your best interest to know how to find cash buyers for your properties.
In order to fully understand why knowing how to find cash buyers is important, you must first understand how they view capital.
Today’s greatest real estate investors are more than aware of it, and anyone with the aspirations of “making it” in the real estate industry should, too: cash is king. Few things, if any, are more valuable to a real estate investor than the ability to leverage cash in a respective transaction. At the very least, cash has cemented itself as the preferred method for completing a transaction; at its pinnacle, however, access to capital awards savvy investors the ability to transcend the competition. Cash is nothing less than a “game changer” in the hands of a knowledgeable real estate investor, which begs the question: Why do sellers covet cash transactions? Better yet, what is it about receiving an all-cash offer that is so much more appealing than one that has been financed through a traditional lender?
The moment an offer is accepted, sellers expect to get paid — and get paid they will, regardless of the source. Whether they are receiving cash or a financed lump sum from a bank loan, sellers will get the money they were promised. That said, sellers don’t covet cash for it’s monetary value, but rather its speed of implementation. Cash has become the preferred method of facilitating a transaction for one simple reason: it eliminates the “middleman” and the need to succumb to the lengthy underwriting processes that have become synonymous with bank loans. In other words, a cash transaction can happen almost immediately, whereas a financed transaction will almost certainly last exponentially longer. There are simply too many regulations, checks and balances to account for in a financed deal for it to come close to matching the speed in which a cash transaction may be carried out.
It is also worth noting that cash deals are about as “sure” as they come; few things are likely to impede them. Cash offers are so simple, in fact, that there’s very little that can go wrong or prevent a deal from closing. Financed transactions, on the other hand, are subject to several variables, each of which are just as out of the hands of the buyer and seller as the next. It is entirely possible for a financed deal to fall apart in the eleventh hour due to unforeseen circumstances, forcing the seller to look elsewhere and forfeit any progress they had made in selling their property.
Cash offers are unequivocally better in the eyes of sellers. Here are a few reasons you should learn how to find cash buyers:
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Whether you realize it or not, there are a number of places to find cash buyers online. If you want to know how to find cash buyers for real estate transactions, try some of these online methods:
Lead Generation Website (Squeeze Page): Do not underestimate the power of capturing leads your own website has. Provided you put in the time, there’s no reason your own website squeeze page can’t solicit the contact information of cash buyers. It is entirely possible to set up a lead capture form that specifically targets cash buyers. Simply start by advertising to cash buyers on all of your marketing platforms, making sure to hit on social media. Proceed to use each outlet to drive a cash-centric message to your audience; one that will guide willing and able cash buyers to your page. Once they arrive at your squeeze page, offer them something for their contact information (perhaps an e-book).
Real Estate Clubs: Conduct a local search to identify the nearest real estate club. As their names suggest, real estate clubs consist of real estate professionals and enthusiasts, many of whom are likely to be real estate investors themselves. Perhaps even more importantly, however, real estate investors already know the importance of buying with cash; there’s a good chance they are just waiting for the right deal to come their way before they pull the trigger on a cash offer. Who’s to say they wouldn’t want to make on offer on your home. At least one thing is for certain: you will never know until you ask.
Craigslist: Craigslist is nothing, if not a great vehicle for rental property owners to market their homes for rent. The online marketplace is full of investors trying to fill their vacant properties, but I digress. As someone looking to sell a home to a cash buyer, you are most likely less interested in renting a room and more interested in finding someone with both the means and willingness to add to their portfolio. That said, those with an established rental portfolio may be exactly what you were looking for. At the ver least, Craigslist can help you identify investors that are actively investing. There’s no reason you shouldn’t contact the owners of rental properties to see whether or not they would be interested in expanding their portfolio with your property. And, again, if they are investors, they already know the importance of using cash.
ListSource: ListSource has made a name for itself by identifying motivated sellers. However, the data on ListSource can be reverse engineered to find cash buyers. More specifically, pay special considerations to absentee owners that neglected to record a deed of trust; their neglect to record a deed of trust could suggest a cash purchase was just made. Better yet, it could identify a potentially viable cash buyer for your own deal.
Public Record: While public records will most likely require you to visit your local public record’s office in person, the search starts online. Begin with a quick Google search to identify the office closest to you, or the one the holds the data on the homes you are interested in. Once you have identified where you need to go, take some time to visit the office and pay special considerations to the homes that do not have a lien attached from a loan. If there isn’t a lien attached, there’s a good chance the home was purchased with cash. From there, simply identify the buyer, and you’ll have a contact that has made a cash purchase in the past. Better yet, they may be interested in making a cash purchase in the future.
Hard Money Lenders: Hard money lenders, and even private money lenders for that matter, are nothing if not a great source of leads. If for nothing else, they have worked with investors looking to acquire deals with cash. In the event a hard money lender can connect you with their past clients, it’s possible that you could find yourself with a new lead.
If you are comfortable finding cash buyers in your area, you may find yourself with a distinct advantage. If for nothing else, knowing how to find cash buyers can facilitate an easier, faster and cheaper deal. It is true what they say: cash really is king. And if you can find buyers willing to pay for your properties in cash, you may find the process of selling a home to be that much easier.