New data from ATTOM and Bloomberg shows that 50% of home purchases are now being made by cash buyers in some cities.

Why are there so many cash buyers in the market right now? Why should you be connecting with more of them to fuel your investing? How do you do it?

The Rising Percentage Of Cash Buyers

New data reveals that cash home buyers now make up 50% or more of all transactions in at least 13 major cities. Including Atlanta.

Recently the media has spun a lot of negativity about the economy. Which may or may not be accurate. Though it may make it surprising that so many cash buyers are showing up to purchase homes.

However, in this next phase of the market when traditional retail mortgages can become harder and more expensive to get, cash buyers certainly do rule.

They are certainly the preferred choice for real estate wholesalers looking to turn their deals fast, with certainty, and the fewest risks of falling apart before closing.

Who Are They?

ATTOM poses that institutional investors have actually pulled back a little, with regular retail home buyers jumping in as these cash buyers.

This is great for wholesalers who can find well priced deals, and still sell at retail, and close to top of the market prices.

Of course, many institutional investors have been working on liquidating old inventory, and are preparing to make more acquisitions as the market balances out.

This may be a great time to jump in while there is less competition and find more profitable deals.

Many of these retail buyers may include those selling homes with lots of equity and looking for new destinations to live in. As well as those relocating to more affordable areas. And those cashing out poorly performing retirement accounts, and looking for something more solid to put their money into.

How To Build Your Cash Buyers List Now

This next phase of the real estate cycle is one in which cash buyers are always extremely important.

In many cases traditional retail mortgages become very elusive. Cash buyers are the most reliable end buyers to wholesale your deals too. Those who control the most qualified buyers will be those that win the most. So, how do you line up more of them?

SEO, and publishing blogs and articles is still the highest ROI way of attracting real estate leads today. According to Whatconverts, it can be 3x or more profitable than other forms of online marketing.

However, the same data set shows that by adding a little PPC to your marketing mix can actually exponentially drive up the results of your SEO and content campaigns.

With all the new technology and noise out there, human connection, relationships, and better customer service have also only become more important and valued. So, also look for opportunities to build an offline community and network to build those real connections with those who are likely to be cash buyers.

 

It’s a great time to be wholesaling real estate. Yet, many investors could be doing far more volume, and could be turning deals far faster.

There’s one sticking point where many property wholesalers are getting jammed up. A factor that could lead to more successful house flips, faster turns and much more volume. So, what is it, and how can making one relatively simple adjustment help triple your deal volume and income?

Most wholesalers don’t have a strong stable of cash buyers they can sell multiple deals to each month. If you had just 10 repeat buyers that could pick up 2-10 deals a month from you, you would probably be making more money than you imagined, easier than you ever thought possible.

Unfortunately, most wholesalers are still just trying to build a list and are throwing out ads for their deals in places where very few cash buyers are. As of January, Realtor.com reports just 22% of sales were cash investors. That’s probably even lower now. Yet, wholesalers are blasting endless deals on Craigslist, but insist they will only take “cash or hard money.”

There are some obvious reasons for this. Most often because the property condition may not cut it for conventional mortgage banking underwriting. However, that doesn’t mean there aren’t more ways to finance these deals, or for buyers to come up with cash creatively. Yet, most are just dismissed. If you’ve been running ads like this, and have had to deal with dozens of buyers you’ve turned away because of this, it may be time to rethink your strategy.

With the best transaction funding, you can secure all the deals you can find. It’s just a matter of the exit. Why not help connect all of these potential buyers with capital or creative strategies they can use to buy your properties?

You may not want to gamble on them getting a conventional loan. They may not either. Yet, there are still plenty of options. This includes, paying you for the property with a credit card via PayPal, obtaining personal or business lines of credit, private mortgage lenders, rehab lenders, and small local banks and credit unions.

If you can give potential buyers 5 more ways to buy your deals, and connect them with some of these sources, how much more could you grow your deal flow and income?

Remember, it’s not just about this one deal either. If you aren’t following through on your wholesale contracts with your sellers, word is going to get around. That’s going to make it a lot harder to do deals in the future, rather than easier. Now, if you take a few minutes to provide a list of potential lender contacts to your buyers (which will still effectively be cash deals for you), then they may become steady repeat buyers with you. They can use those funds to come back every month to get deals to flip or renovate and rent out. That’s the beginning of a very strong buyers list. Once they do a few deals with you, they should also have enough cash to pay cash for your future properties too.