What motivates a cash buyer to jump in and make the “all cash” offer?
Our research found that the top three concerns made by cash buyers are:
1. “prices may go lower”
2. “will the area see more sell off & foreclosures”
3. “will tenants move to area”
So who are these cash buyers and how do you get them in your pipeline? For starters you must understand that a person who is using cash to buy real estate is looking for location and price. That is, they want under-valued (great price) property in a good location.
Our survey found that for the most part cash buyers are Rental Property Buyers. There were also rehabbers and contractors, but most persons, investors, and groups are looking to buy rental properties.
Getting Cash Buyers to Contact You
Now that you know cash buyers are generally looking to buy rental property, you can set your marketing to target these types of people.
An effective approach that brokers and agents have been using involves placing the “Handyman” Ad. This ad is placed in the newspaper and online.
The Process for Placing Ad in Newspaper:
Note: A lot of buyers still check the newspaper for properties
1. Place the following Ad in the newspaper for at least a few weeks. Place this ad even if you do not have a property yet to sell. You can repeat the ad as often as you like.
Handyman Special – 40% Below Market Value
Lakewood area, call 866-459-4597 x252
2. When you start getting calls,
– Let each person know that the property has already sold
(if you do not yet have a property to sell)
– Say you have new below market value properties weekly
– Ask if they want to be placed on your priority buyers list
if so, take down their information — name, phone, email,
property type, financial situation (cash buyer), etc.
3. Perform your Follow-up activities & close deals
The Process for Placing Ad on Internet:
1. Create a website, or add a section to the home page of your existing site.
2. On your website,
– state that your company gets a weekly supply of properties
at 20-60% below market value.
– have a “Below Property Value Notification” sign-up form
where each person enters their name, and email address
3. Put this website address in your newspaper ad, on your business cards, in your newsletters, etc.
4. Follow-up with each person
To get the most buyers for your real estate business, make sure you follow-up with each person. When buyers are ready to do a deal, you want your name at the top of their list.