When you're starting out, having a good cash buyer script gives you confidence that you're asking all the right questions and helps you know what precisely each of your buyers is looking for.
It also enables you to weed out the fakers from the real investors. Let's take a few minutes to talk about cash buyer scripts and how they help you to build rapport with real estate investors.
Download The Script Here
You don't know if someone is a genuine "cash buyer" or just someone pretending to be a cash buyer (i.e., another wholesaler, wanna-be investor, or owner occupant looking for a house they'll need to get a mortgage on). This is one of the reasons collecting information on your cash buyers is crucial.
In the first section of the cash buyer script, we collect all the contact information (name, company, address, phone, email, and website)
When you collect this information on a potential cash buyer, you can easily research them to find out if they're an actual real estate investor. Now I'm not saying you won't ever sell to someone just starting as an investor or house flipper, but they'll be on your secondary buyer's list.
Your main goal is to build a list of big-time, active investors who won't play games and will close fast on any deal you send them.
The second section of the cash buyers' script is where we collect their buying criteria, and it's great to start by just asking them to describe to you what their "perfect" investment property look like... The one they would buy all day, every day. After you ask the question, let them talk, and don't interrupt.
After they're done speaking, move down your cash buyer script and fill out anything they didn't mention. Area, price, bedrooms, baths, construction type, buy and hold, fix and flip... (and so on)
Collecting this information is vital because every buyer is different, and you don't want to send a property to them when it doesn't come close to something they'd buy.
Also, once you build your buyers list, it's a good idea to go out and look for the properties you know your buyers are actively looking to purchase.
It's hard to build rapport when you're filling out your cash buyers script, so I suggest recording the call and then going back after you hang up and fill it out. Go to your app store, find one with good reviews, and try it out.
Important Tip: Download a call recorder on your Apple or Android phone to record your calls!
Building a list of great cash buyers is equally important as locating motivated sellers... You can only succeed with both. So really take the time to know your buyers, their needs, and their buying strategy.
Now, let us look at another scenario, you've identified a prominent real estate investor in your area, but you can get them on the phone.
I know several successful real estate investors that buy dozens of houses every single month; just calling their office and expecting to talk to them if you'd never met before would be next to impossible. So how do you approach something like this?
Try sending them an enticing letter... If you can't get them on the phone so you can go over your cash buyers script, send them a letter, it has worked very well for me many times in the past.
Please look below at the letter I've sent that's had success.
Dear (Investors name)
My name is (your name), and I'm a Property Acquisition Specialist in the (your city) area.
By way of public records, I noticed you're actively buying residential investment properties in the area and often have below-market investment properties available. I thought you might like to know about them as they become available.
I specialize in finding "off-market properties" for investors, and I clearly understand the importance of finding properties well below market value. Basically, what I do for a living is find bargain properties for savvy real estate investors like you that aren't listed on the MLS.
I'd like to add you to my area buyers list, but I need a little more information from you.
Please fill out the attached criteria form and either fax or email it back to me. If it's more convenient, you can also go to [www.yourcashbuyerwebsite.com] and fill out the online investor criteria form.
After I get you added to my list, you'll be notified immediately by text and email of any new wholesale properties that match your buying criteria.
I look forward to working with you.
(your phone number)
Download The Letter Here
Cash Buyer Database
What should you do with the information once you start collecting data on your buyers?
When I first started wholesaling, I set up groups in my Gmail account just for cash buyers. I would separate them into categories by county (or whatever will work best in your area).
When I would get a property under contract, it was easy to put a flyer together and email it to the whole group. It also keeps all your investor's contact information easily accessible on your phone!
Once you start doing a lot of deals every month and have the budget to upgrade, you can look into CRM (client relation management) systems like Podio or Flipn.pro (but that's down the road a bit)