There is typically nothing more guaranteed than cash—but unfortunately, we don’t always have it readily available. If you’re a flipper or building developer and need cash to fund your next project, the obvious is to turn to investors looking to buy into the real estate market. The question is, how do you get them to share their cash with you and to trust you to give them a return on their cash? Here are some ideas of how to find and attract cash buyers for your projects.
1. Utilize Real Estate Agents
Real estate agents are still being utilized by a lot of buyers and sellers in the market so when looking for buyers it is always good to tap an agent. Agents should have buyers that are in their connections and will know which ones can bring cash to the table. You may also find that some agents are also interested in investing themselves as well as many utilize real estate investments to provide additional income or set them up for retirement.
2. Spend Time Where Investors Spend Time
People of the same mindset typically spend time doing the same types of things. You may be able to find other investors at places like real estate auctions, real estate investing educational seminars, conferences or other local networking events. Not only may you find potential investors at these events but you may also network with individuals that could lead you to other deals. There may also be first time real estate investors at these events which is a great opportunity to grow relationships with investors for both your current and future investments.
3. Market the Property to Cash Buyers
Take advantage of different marketing techniques such as direct marketing or advertising where you know cash buyers would see. Investors will be hunting for deals in different publications, so get to know which outlets are popular in your market and cater specifically to those investors. The more relevant the publication, the better chances that it will catch the attention of an investor. Social media is also a great medium to advertise to investors. Platforms like Facebook have the ability to send out very targeted ads that, if used correctly, can be an effective method of finding an all cash buyer.
Crowdfunding can help you pull cash from many different sources. You may have connections that want to invest but only have a fraction of the total cash. This is where crowdfunding can come in. Platforms like
Patch of Land work as a tool to match up these smaller investors with developers to get their projects funded quickly. Find more information about how Patch of Land can help bring your project to life here.