GUIDE · UPDATED
How to find cash buyers for wholesale real estate deals
A wholesale deal is not finished when the seller signs. It is finished when a buyer closes. A cash buyer is an investor who can purchase without a mortgage approval, which is what lets a wholesale deal close in days or weeks.
This guide covers who those buyers are, eight places to find them, what to learn about each one, and how to send a deal so the right buyers answer.
THE SHORT VERSION
- The buyers you want have closed nearby, recently, on houses like yours.
- Public records of recent investor purchases are the most reliable place to start.
- Record each buyer’s buy box: where, what, how much and how fast.
- A handful of buyers who close is worth more than a long list that never answers.
Who cash buyers are.
| BUYER | WHAT THEY DO | WHAT THEY CARE ABOUT MOST |
|---|---|---|
| Flipper | Renovates and resells. | The spread between purchase price plus repairs and the after-repair value. |
| Landlord | Buys to rent and hold. | Rent against price, the neighbourhood, and how much work is needed before a tenant moves in. |
| Builder | Buys lots and teardowns. | Lot size, zoning and what can be built. |
| Institutional buyer | Buys at volume to rent. | Homes that fit a fixed set of criteria in specific areas. |
Each kind prices a deal differently, so the same house is worth a different amount to each. Knowing which kind you are talking to tells you which deals to send.
Eight places to find cash buyers.
Recent cash sales in public records
County records show who bought what. A purchase by a company, or by an owner whose mailing address is somewhere else, with no mortgage recorded, is usually an investor. Someone who bought near your deal in the last year is your most likely buyer.
Investors who bought near your deal
Look at the streets around the property. A buyer who has already renovated or rented a house two blocks away knows the area and can decide quickly.
Local investor meetups
Real estate investor associations and meetups put active buyers in one room. Ask what they bought last, not what they would like to buy.
Auctions
People who bid at foreclosure and tax sales buy with cash and buy often. Note who wins.
Investor-friendly agents
Agents who list renovated homes or represent investors know who is buying, and some buy themselves.
Lenders, title companies and property managers
Hard money lenders, title companies that close investor deals and property managers all work with active buyers every week.
Online groups and signs
Local investor groups on social networks, and the people behind "we buy houses" signs and ads, are buyers. Call them and ask what they are looking for.
Buyer data tools
Software that compiles recent investor purchases saves the record search and shows activity on a map.
Record each buyer’s buy box.
A buy box is the description of what a buyer will purchase. A buyers list without buy boxes is just a phone book. Ask each buyer these questions and write the answers down.
- Where do you buy? Cities, zip codes or neighbourhoods.
- What do you buy? Property types, bedrooms, size and age.
- How much work will you take on? Cosmetic, moderate or a full renovation.
- What price range?
- Do you flip or hold?
- How fast can you close, and how do you pay?
Check that a buyer can close.
- Ask for proof of funds: a recent statement or a lender’s letter showing the money is there.
- Ask what they closed on recently, and look the purchases up.
- Agree a non-refundable deposit when they accept the deal.
- Confirm they can close by the date in your contract with the seller.
A buyer who backs out a week before closing puts your deposit and your seller at risk. Checking takes one conversation.
How to send a deal.
Send the deal first to the few buyers whose buy box it fits, before you send it wide. A matched buyer answers faster and argues less about price.
- The area, and the address once the buyer is serious.
- Photos of every room and the exterior.
- Your ARV, with the comparable sales behind it.
- Your repair estimate, item by item.
- The price, the closing date and how to see the house.
Show your numbers. Buyers will run their own, and a wholesaler whose ARV and repair estimates hold up gets the first call on the next deal.
Keep the list alive.
- Note why a buyer passed. It sharpens the buy box.
- Update a buyer’s criteria when they change strategy or area.
- Mark who closed and who backed out.
- Remove the buyers who never answer.
FROM THE PUBLISHER
Where ARIA fits.
ARIA’s Investor Finder maps recent investor purchases around any address, so you can see who has been buying near a deal, and its matching ranks likely buyers for that deal by price, location and property type. On the Max plan the Cash Buyer Database keeps each buyer’s buy box. ARIA drafts the deal message for you to send from your own phone or email; it does not send bulk messages to buyers.
FAQ
Questions, answered.
What is a cash buyer in real estate?
An investor who can buy a property without waiting for a mortgage approval, using their own money or private financing that is already arranged. Because no bank approval is needed, a cash buyer can close in days or weeks.
How many cash buyers does a wholesaler need?
Fewer than most people think. A handful of active, reliable buyers in your market will close more deals than a list of hundreds who never respond. Aim for several buyers of each kind, flippers and landlords, in each area you work.
How do you verify a cash buyer?
Ask for proof of funds, ask what they have closed on recently and look those purchases up in public records, and take a non-refundable deposit when they accept a deal.
Should I find buyers before I find a deal?
Start a few buyer relationships first. Knowing what local buyers pay, and for what, tells you which deals to pursue and how to price them. You do not need a large list before your first contract.
Where can I find cash buyers for free?
County property records, local investor meetups, foreclosure and tax auctions, and local online investor groups all cost nothing but time. Public records are the most reliable, because they show who has actually bought.
What is a buy box?
A buyer’s purchase criteria: the areas, property types, price range, condition and strategy they will buy. Recording it for each buyer lets you send a deal only to the people it fits.
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