3 Tips on Vetting Cash Buyers | Wholesaling Real Estate

3 Tips on Vetting Cash Buyers | Wholesaling Real Estate

In this video I’m gonna share with you
three tips on how to vet and qualify your cash buyers, because quality is so
much more important than quantity. Hey welcome to my channel if you’re new,
welcome back if you’re true. I’m Dara real estate investor, entrepreneur, and
consultant out of Atlanta, Georgia and gonna dive right into the three tips and
the three things that you should do to vet and qualify your buyer. Be sure to
stick around all the way to the end of the video so you can get a bonus tip. I
have several videos on my channel on how to find cash buyers and even how to
market your deals to cash buyers but here I want to tell you how to vet
them. It’s so important because not every cash buyer is made equal. So getting
right into the tips. Tip number one is to ask your potential cash buyer for their
specific criteria. I cannot count how many times I’ve had buyers like, “Oh yeah, just send me everything you have. I’m a cash buyer, send me all your deals.”
You sure you want all my deals because someone who wants everything– I’m not
saying that just because someone will buy everything means that they’re not a
verified, qualified cash buyer, but it just really grinds my gears. There’s– for
some reason it grinds my gears when people are just so broad and general. I
think about it like this, if you are in the market to start dating and you’re
like, “Well, I like all kinds of guys or girls or whatever. And it’s like, okay so
you don’t have a type? You don’t want an educated man who is college educated? You
don’t want a man from this culture? You don’t want a man who’s tall? And maybe
that’s you; maybe you like just that species, that gender. But those with
criteria are gonna actually get what they want. You know I mean? Like if you
know what you want, you’re gonna get what you want. Bringing it back to real estate,
if you know you like three bedroom, two bathroom houses that are 1,200 square
feet, no foundation issues in this zip code with this much– this little days on
market, then you’re going to get that. It’s gonna be easier on the wholesaler
to find you exactly what you need. So I like to make sure
that the cash buyers that I work with have criteria even if it’s as simple as
let me know what zip code you buy in, let me know where price point you buy in,
things like that you want to make sure you get that out of your cash buyers. Tip
number two is to find out how they fund their deals. This is very important,
because cash buyers are not made equal. The term cash itself is not– it’s just so
loose out here now. So are your buyers or is your potential buyer going to need
hard money, which is gonna take a little bit longer that means they can’t close as
quickly as tomorrow. Are they using their own funds? Are they using private funds?
Just finding out how they’re funding their deals will help you know the speed
at which they can close. It’s also important for you as a wholesaler to
understand the speed of money. So, again, I mentioned if there’s a buyer who needs
hard money and they’re telling you, “Oh yeah I can close in three days, I can
close in seven days.” Tell them to keep walking because that is so not true
at least here in Atlanta. I can’t speak for hard money anywhere else, but hard
money is slower money than cash or private funds. So, hard money takes
anywhere from ten to fifteen days to close. Tip number three when vetting your
cash buyers and qualifying them is to find out how much volume they can handle.
So whether you’re just starting out and you haven’t done a deal yet or maybe you
come across thousands of leads, whatever the case is, you want to know if your
buyer–once you know their specific criteria and you go farming and
marketing in that area to find them deals exactly what they want–you want to
know if they would be able to pull the trigger if you send them two deals a month,
if you send them five deals a month. Or are they slower pace? Are they like, “Yeah I
can only handle one every two months.” So and that’s fine, whatever their speed is
just work accordingly but it’s important to know that you don’t want to send all
your deals and pump out all your deals to this person who is not able to keep
up with that type of volume. So, make sure you find out how much they can handle.
And here is the bonus tip for you guys definitely go check out this video here
on the best way that I think you can find
cash buyers and once you watch that video come right back here to get this
bonus tip. So, the fourth tip or the bonus tip for vetting and qualifying your cash
buyers is to actually go and see what it is that they bought in the past. So that
kind of goes along with their criteria. So you want to build a relationship with
them and in doing so, in doing this, you meet face-to-face if they are in your
area; if they’re a foreign buyer or whatever that’s, you know, maybe can’t
do that. But meet them at one of their projects, meet them at one of their
current projects or their upcoming projects or their recent projects or you
can just simply do a search and say, “Hey what are some past projects that you’ve
done?” Look it up on Zillow or the MLS or whatever and actually kind of see what
they bought it for, how much they put into it, what are their finishes like, and
and what– you know, just get a feel for what their rehab abilities are or their
rehab patterns I would say. And if they’re a landlord buyer, same thing. You
can just kind of look at what areas have they bought in in the past or what are
they currently own and how much they paid for and things like that. So that’s
the bonus tip: meet them at their projects or if you can’t meet them at their
projects, then just get a list from them of their most recent projects or their
current projects so you can have an idea of what it is that they really want.
So just to recap, the first tip for vetting your cash buyers is to find out
their specific criteria. If someone is not trying to give you specific criteria,
they’re not trying to tell you, “Oh, I like this area at this price point. This is,
you know, what I’m looking for.” I– just don’t waste your time. I don’t
care how much money they say they have personally–you can take that tip or not–
but I just really don’t want to waste my time. Because what’s gonna happen is,
you’re gonna get deals from all over the place and you’re gonna be shooting it to
them and they’re just gonna be kicking tires left and right. So let’s not work
with tire kicker McGee’s okay? Let’s work with people who know what they want and
can actually pull the trigger and close with you, repeatedly.
Um, which brings me to tip number: two how are they funding their deals? You want
to know that, that’s very important for you to know because some money is slower
than others. And tip number three is finding out how much volume they can
actually handle over a specific amount of time. And my bonus tip for you
guys was to find out what their recent or current projects are so that you can
get an idea or a better understanding of just how they operate as a rehabber or
an investor. So I hope that these tips helped you in working to vet your cash
buyers. You don’t need a list of a thousand people, you don’t need a list of
a hundred people. Quality over quantity is what’s going to make you a very
successful wholesaler and once you build a relationship with someone who
buys from you, just keep that going and make sure you just, you know, feed them
and give them what they want. Oh and hey! If you want to purchase this
shirt that I’m rocking here my real-estate periodic table t-shirt that
I designed myself, go ahead and look down in the link below to see how you can
order yours as well. Down in the description box–I said the link–down in
the description box, there’s actually a lot of things that might benefit you in
your wholesaling business. This t-shirt might be one of them. But again, thank you
guys for sticking around till the end. Thanks for watching this video, make sure
you like, comment, share, and subscribe. All that good stuff. And I will see you in the next one.

13 thoughts on “3 Tips on Vetting Cash Buyers | Wholesaling Real Estate

  1. I share three tips + a bonus tip on how to qualify your cash buyers!
    Tip #1 – 0:48
    Tip #2 – 2:28
    Tip #3 – 3:32
    Make sure you read the description box before asking your question.

  2. First to comment πŸ”₯πŸ”₯πŸ”₯

  3. Awesome , great videos I needed this video, about to start marketing for cash buyers

  4. Hello there πŸ™‚ Its me,Wondering If I can get some help with wholesaling?

  5. Hey I’m another wholesaler in the area of Covington I’ve driving for bucks but i wanna know what you think of the market. I would love if you could get back to me :))

  6. Thanks Dara.. your a Gem πŸ’Ž

  7. thanks Dara for your helpful tips. I'm new to wholesaling in calif. market, and wholesaling is not easy if you're doing this solo. getting funding support is not easy as they say, if its your first deal you're doing. the sellers want new construction amounts for their properties that are in decent areas. they talk to agents and believe the hype. the "Guru's want 5k and more to coach you, than they send you to watch videos. Thks.

  8. your locs are everything!
    btw Dara can you please do a video about what the final closing stage looks and feels like for you? Like can you talk about once you have ALL steps done and both contracts are about to be signed, THEN what does the process look like? Hopefully rephrasing my question twice helps you get what I mean LOL thank you.

  9. Hi Dara, I’m new to wholesaling in West Atlanta. Was wondering how you found your closing attorney? If you don’t mind helping please email me your response. [email protected]

  10. Just wanted to say, I love your videos! Very good info in all of them!

  11. Hey, can you help me?

  12. D.O.P.E shirt!!!

  13. Great value in this video

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