9 Proven Ways To Find Cash Buyers for Your Next Wholesale Deal

The most preferred type of buyers when it comes to wholesale deals and assigning contracts is cash buyers. 

The most preferred type of buyers when it comes to wholesale deals and assigning contracts is cash buyers. 

Why? 

A cash buyer will get a great deal on a house because there is no qualifying for a loan or waiting period. 

For this reason, cash buyers can provide a quick profit to the seller. 

They are considered a seller’s dream — and a wholesaler’s golden ticket. 

But how do you find cash buyers for wholesale deals?

Even better, how can you find them for little to no cost? 

In this article, we’ll break down specific ways to find cash buyers so that you can earn a fast profit on your next wholesale deal.

What is Wholesaling in Real Estate? 

Before we break down how to find cash buyers, let’s make sure we have the basics down first. 

What is wholesaling? 

In real estate, a wholesaler is a middleman who:

• negotiates deals on properties 
• gets them under contract
• finds a buyer
• earns a profit, or a commission, from the deal
• and does it all again! 

Having done the leg work of finding comparable properties, calculating the after-repair value (ARV), and getting the best price from the seller, a wholesaler is of great value to a buyer. 

If the buyer is in agreement and wants to buy the property, the wholesaler will assign the contract to them for a fee, anywhere between 5-10% of the total price once sold. 

Once the contract is assigned, the buyer takes over escrow and title, and the wholesaler gets paid once the escrow closes. 

Keep in mind that when a buyer uses cash, they are typically required to provide proof of funds (POF) to the seller which means they have the required cash available. 

Next, we’ll take a look at both the advantages and disadvantages of cash buyers for wholesaling. 

Advantages of Cash Buyers for Wholesaling 

One of the biggest advantages of a cash buyer when it comes to wholesaling is that it removes the worry from the seller that the buyer’s loan will fall through. 

If the loan falls through, the work and the time it took to reach that point may be all for nothing. 

As with anything else, cash is king. 

When a wholesaler approaches a seller as a cash buyer, they are in a much better bargaining position than another buyer who is using a loan. 

Disadvantages of Cash Buyers for Wholesaling 

That being said, there are disadvantages when it comes to cash buyers for wholesaling.

Sometimes a seller might shy away from a cash buyer because they know they might have to take less for their home. Generally speaking, cash buyers offer 12% less than buyers with a loan. 

Also, the speed at which a cash buyer closes is not advantageous to a seller who is buying a new property at the same time and trying to juggle money in versus money out. 

9 Ways to Find Cash Buyers for Wholesale Deals 

If you’ve decided that you want to use a cash buyer for your wholesale deal, here are the ten simple ways to find those buyers.

Propwire

Utilizing access to real-time MLS and off-market property data, Propwire allows viewers to filter by “Cash Buyers” — Investors and rehabbers who have paid cash for a property and are likely to buy more houses in the future — under Lead Types. 

Users will be directed to a simple skip trace that will provide the contact information for this real estate investor. 

The accuracy of the tool combined with the up to date MLS data and the ability to skip trace with ease is why using Propwire is one of the best ways to find cash buyers for your wholesale deals now and in the future. 

Network 

Joining a real estate investing association (REIA) is a great way to network and find the cash buyers that you need. 

Real Estate Attorneys 

Because real estate attorneys work with cash buyers often, they can be a good resource to connect you with them.

MLS 

Another way to find cash buyers for wholesale deals is to run a quick search on the MLS — for example, Zillow or Redfin, and identify properties for sale in the same area of the property you have in mind.  

Next, call the real estate agents listed. 

Some of them may know of cash buyers that have purchased from them in the past. 

Property Managers 

Property managers work with real estate investors who own the properties that they are managing. 

Where there’s one, there are many. 

Most likely an investor who owns one property owns more, and is probably looking for their next great deal and can be a cash buyer. 

Bandit Signs 

While bandit signs are meant to attract sellers, they often attract buyers as well. 

By placing bandit signs, you can field inquiries and determine who is a cash buyer.  

Local Landlords 

Some local landlords of multi-unit buildings may be in the market for new properties — and some of those may be cash buyers. 

If not, they could point you to other landlords who buy with cash. 

Real Estate Auctions 

Another way to find cash buyers for your wholesale deals is to attend a local auction. 

They’re usually swimming with cash buyers, and if you’re friendly and professional, you will likely meet great connections who can help your real estate business. 

Classifieds 

Running an ad on Craigslist or Facebook Marketplace looking specifically for cash buyers in a certain area is a cheap and simple way to attract the right buyers. 

You can even list specific properties for sale and state that you are searching for cash buyers. 

How Do I Become A Wholesale Buyer? 

On the other hand, what if your real estate business is booming, and you’re looking to buy a wholesale deal? 

How do you become a wholesale buyer? 

The best way to become a wholesale buyer is to first do some research in your market. Learn about pricing in the neighborhoods, and which areas attract more buyers. 

Curate a buyers’ list then search for properties using Propwire’s extensive and up-to-date database in your subject area. 

Learn how to comp these properties by looking at properties in the area that are the same size and that sold within 90 days. 

Once you know your subject’s home value, call the seller or agent and make an offer. 

When you get your first house under contract, it’s time to get the info out to your buyers and assign the contract. 

Now you just wait for escrow to close and collect your fee. 

The Bottom Line: Finding Cash Buyers for Your Next Wholesale Deal 

While finding cash buyers for your wholesale deal can be difficult at first, once you know where to look, it gets easier. 

By building your real estate investing network, you can find cash buyers quicker and with less effort. 

With the right network and the right real estate investing education, your ability to find cash buyers for wholesale deals — and your real estate investing business overall — will grow to new heights. 

Free Property Search

Find Your Next Wholesale Deal, House Flip, or Rental Property Investment.

Search Now