As part of our Q&A series on wholesale real estate, in this episode will address the question of which prospects to go after first.
Should you find a motivated seller first or build a cash buyers’ list?
In a full blown wholesale operation, you will discover quickly that those are 2 different roles or jobs that just happen to be in the same business.
With that in mind, let’s take a look at today’s question and answer it comprehensively.
QUESTION From Michele Y
“Hi guys still educating myself on wholesaling I’ve been on Craigslist looking at houses (working up to making my first call soon I’m kinda nervous) any tips on what to ask? Also Is it better to find the motivated seller first or cash buyer? I’ve heard it’s better to find buyers first. Thank you!”
Paul S: “Personally finding a deal you can wholesale that the end buyer can make a good profit on is the hardest part. Cash buyers are always looking for deals. So if you have a good deal and advertise it. Shouldn’t have any problem finding a cash buyer. If you want to meet them go to your local foreclosure auctions and introduce yourself if you find one then tell him what you got they would probably tell you in a matter of minutes whether it’s worth their time”
Donny D: “Don’t listen to Paul. Get you at least 5 to 10 buyers so you have people to flip to. What if you lock up the property and can’t sell it? Then you screw the seller which isn’t fair & your reputation hits the toilet. That way if you already have buyers you will always sell it as you match their criteria. Take it from someone who has wholesaled multiple deals.✔️”
Paul S actually has a better answer simply because he said to lead with value.
Donny D… we don’t care how many deals you’ve closed bro. I can bet $2,000 you’ve never closed more than 2 deals if any, based on your answer to this young lady.
Michele Y, you need to learn marketing. That’s the single most important answer you can get.
But to answer your actual question.
What to ask? Ask…
1.) If you are talking to the right person.
2.) If they own the subject property you are calling about.
3.) If they are open to a cash offer that can close in 10-15 days on the subject property.
Is it better to go after motivated seller first or cash buyer?
There are 2 ways to answer that question.
I am a cash buyer and I have access to all the cash buyers you need.
If you had to choose, set up marketing and start attracting motivated sellers into your pipeline.
You can build your buyers list as you go. You can also learn professional level online marketing to build buyers list.
None of that is overnight. It takes time but well worth it.
Which of the 2 prospects (motivated seller or cash buyer) would you enjoy funneling value to consistently?
Find out the answer to that and focus on it.
If it’s motivated sellers, go after them and leverage other people to get your cash buyers.
If it’s cash buyers, others who are finding motivated sellers will fall in love with joint venture with you.
If you are truly bringing value to one side of the equation, the other will show up everywhere in abundance.
The common denominator here is to invest in yourself and skills to become a professional marketer.
I hope that helps. Bests of luck.