What To Say To Cash Buyers For Wholesale Deals

Courtney Osborne

05-01-2023

What is a Wholesale Deal?

A real estate wholesale transaction can take many forms for a variety of different property types for many different cash buyer types. Real estate investors buy properties at various price points and aim to purchase them at a discount or a reasonable price below the ARV (after repair value). If the numbers don't make financial sense, most cash buyers are unlikely to buy the property. If the purchase price range is too high to access money from private lenders or hard money providers, wholesalers should have the correct numbers from cash buyers first. Knowing the buying habits, preferred property types, desired locations, and previous off-market purchases of each cash buyer is crucial. Wholesale deals usually take the form of an assignment of contract from the wholesalers to an end buyer who will ultimately purchase the property. It's important to understand and become educated on the process. Communication and straightforwardness with the title company and the end buyer is very important to make a successful wholesale transaction.

Why it's important to have all the information for a wholesale transaction

Off-market real estate transactions can be complicated, from dealing with title issues to managing squatters and difficult tenants. Understanding the seller's current situation and timing requirements is essential for a successful transaction. It's important to have a clear understanding of the seller's motivations and timelines to streamline the process and ensure a positive outcome for both parties.

Sellers usually have a timeline in mind for selling their property, either immediately or within the next few months if they're not in a rush. Cash buyers should also be aware of these timelines, especially if they need to contact lenders. Real estate investors who primarily buy off-market properties know that these transactions can be complex, so they prefer a smooth process. Investors who purchase multiple properties per month prefer deals that can provide a quick return on investment and avoid complicated transactions. The information cash buyers need includes:

• Square footage of the property
• Location (neighborhood, ZIP code, etc.)
• Purchase price
• Whether the property is located in a flood zone
• Whether the property is occupied by tenants or squatters
• If the property is occupied, what is the rent for each unit and length
• If it is an infill vacant lot, what is the frontage, depth, and zoning, and is there a survey available? Also, what is the timeline and cost for replotting, if necessary?
• A list of necessary repairs and cost
• Schedule a time for the buyer to walk through the property
• Provide pictures and videos of the property
• Include the name and contact information of the title company and escrow officer.
• Assignment agreement

What to say to cash buyers

Once you have all the information needed for a smooth real estate wholesale transaction, it's time to reach out to cash buyers. We have created a cash buyer workflow that is important to use and practice before contacting investors. It's essential to contact the actual cash investors behind the corporate entity, as investors with LLCs and other legal company structures are typically serious real estate investors rather than those who buy property part-time. It's crucial to build a cash buyers list in advance and know which investors are buying in any real estate market.

Learn from person experiences

Agreedment

Agreedment is a Nationwide Cash Buyer List software that enables real estate wholesalers, real estate agents, brokers and real estate professionals to find & get contact information of cash buyers and other real estate investors.