qualify

10 Most Important Questions To Ask Cash Buyers



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if you really simplify it there are two

main functions to wholesale in real

estate one getting good deals and to

building a cash buyer list who you can

wholesale your deals to and on today's

video get ready to learn not just how to

build a cash buyer list but more

specifically how to profile and segment

your cash buyer list and the ten most

important questions to ask every cash

buyer coming up

hi there it's Jerry Norton and if you're

new here to make more money in less time

flipping real estate so you can live

your dream life

subscribe to my channel click the bell I

kind of get notified when new videos are

released the first thing you need to

understand is that it's not about the

size of the list that matters but rather

the quality of the list you see the more

robust your cash buyer list is the more

money you'll make and the faster you'll

move your deals

now when I say robust I'm talking about

a list of local active cash buyers in

your market that are looking for their

next deal and the key to building a

robust list of local active cash buyers

in your market is to personalize your

list now I refer to this as profiling

your cash buyers when it really comes

down to it every cash buyer is different

in their investing strategies and their

wants and needs and the more you

understand them the better you can find

and bring them the exact deals they're

looking for so for example I once had a

cash buyer that bought two to three

rentals a year that he fixed and managed

himself after his day job I knew exactly

what he wanted and like clockwork I

found in wholesale deals for like four

to five years that equated to over

$100,000 in wholesale profits from one

cash buyer what I recommend you do is

segment your list into three categories

category one is your a list these are

your best cash buyers they are ready to

buy they make a decision fast and they

have easy access to capital

you're a buyers are worthy of a personal

call from you about your deal before

anyone else category 2 is your B list

and these are cash buyers that need more

hand-holding they may need to see the

property more than once they may have to

get funding lined up in order to be able

to buy there's still good buyers but

definitely not as good as your a list

once your a list buyers have had a

chance

send your deal to your B list now I

usually don't personally call them so an

email or a text about your deal is fine

and then finally is your C list now

these are people who you don't have a

relationship with and you don't really

know much about them and somehow they

just made it onto your list once your a

and B list buyers have had a shot at

your deal push it out to your C list now

by segmenting your cash buyers into

these three different categories it

allows you to match your deals with the

ID

buyer but the key is taking the time to

learn about your cash buyers and then

having a good system for managing and

tracking and following up which in a

second I'll review the ten questions to

ask every cash buyer but to help you

better manage your cash buyer list

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ok so let's dive into the 10 questions

to ask cash buyers that will allow you

to properly profile and segment them

into your a B and C list I'll add this

list into the description box below so

you can reference it later ok so

question number 1 is are you looking for

buy and hold or fix and flip deals now

this is the first thing you want to know

about a cash buyer because the 2

strategies vary significantly from each

other such as the buy formula level of

rehab Exedra whenever I get a new

wholesale deal the first thing I ask is

with my ideal buyer like this for a buy

and hold or a fixin flip if the answer

is buy and hold take the deal to your

buy and hold cash buyers starting with

the a list and if the answer is fixing

flip

take the deal to your fix and flip cash

buyers again starting with your a list

question number two is what area do you

like to buy in most cash buyers are very

particular about the neighborhoods and

areas that they love to invest in as

well as the areas they absolutely will

not invest in for example if you were to

profile me as a cash buyer I have a rule

that I do not fix and flip in

neighborhoods where the ARV is below a

hundred thousand why my personal

preference is I don't like to fix and

flip and lower-income neighborhoods the

reason isn't the point the point is if

I'm on a wholesalers a list he would

know not to call me with a deal that has

an ARV below a hundred thousand and

honestly my sweet spot is ARV between

three hundred thousand and six hundred

thousand for fix and flips nothing is

more frustrating to me as a cash buyer

than to give my criteria to a wholesaler

and then he or she starts sending me

deal

that don't fit my criteria that is not

how to build a strong relationship with

your cash buyers question number three

is what type of property criteria do you

require now this is referring to the

specs on the home for example some

investors don't do two-bedroom homes or

homes that are below a thousand square

feet some don't do condos or townhouses

some don't do heavy rehabs or additions

others prefer heavy rehabs in additions

some don't do homes without a garage and

so on and so on you get the point

find out as much as you can about the

preferences and restrictions from your

cash buyers step number four is what

type of return are you typically looking

for on your properties once you renovate

and rent or flip them now this is a

long-winded way of asking what is your

current buy formula now this is critical

because not all investors follow the

same buy criteria for example the

standard fix and flip buy formula is 70%

of ARV less repairs but if your cash

buyer buys it say 75% of the ARV less

repairs then you can wholesale deals to

him or her for much more take the time

to learn your cash buyers by criteria

and you'll squeeze every penny and

profit from your deals question number 5

is do you purchase properties with

liquid funds or do you borrow capital

this question lets you know if they use

hard money to fund their deals knowing

that is important because if they do

then you want to make sure that they get

approval for funding now question 6 is a

follow-up to this question how much time

do you require to close on deals keep in

mind if using hard money they will

typically need 30 days to close so they

have plenty of time to get their funding

lined up don't take a deal that needs to

close in 10 days to a cash buyer that's

using hard money or needs longer to

close okay question number 7 is assuming

they bring deals that meet your criteria

how many per month can you take down now

this is important question to see what

type of volume your cash buyer does as

well as his bandwidth some investors do

50 deals a year and some do two deals a

year this allows you to know how often

you can bring them new deals question

number eight is when are you looking to

close on your next deal again this lets

you know if and when they're ready to

buy again another similar question like

to ask is if I bring you a deal that

meets your criteria are you prepared to

under contract to buy it now that seems

like an obvious question but allows the

cash buyer to bring up any other

objections that might be preventing them

from buying that you haven't previously

discussed question number nine is what

other services can I help you with I

believe in what I call full-service

wholesaling find out what else you can

do to make their life easier maybe they

need a title company or a contractor I

believe the more problems you solve the

more money you'll make and I did an

entire video discussing how to provide

additional value of your cash buyers and

how by doing so you can get 25 percent

more per deal so watch that video to

learn how

and question number 10 are you willing

to follow my protocol for going under

contract on deals now I personally have

very specific steps and requirements for

a cash buyer to go under contract on one

of my deals such as a non-refundable

earnest money and specific steps for how

to view the property and submit their

offer to learn this criteria watch this

video once you explain your process and

requirements to go into contract on one

of your deals make sure they can follow

that protocol so those are the ten most

important questions to ask cash buyers

again I'll put those questions below in

the description box so you can have that

as a reference the next time you're

talking to a cash buyer now I really

hope you learned something on this video

if you did hit that like button right

now and leave a comment let me know your

biggest takeaway and specifically if you

plan on profiling and segmenting your

cash buyer list I'd love to hear from

you and seriously guys if you're in the

flippin real estate subscribe to my

channel as of this recording I've done

over 350 videos all on how to make money

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so you can live your dream life do that

now and I'll see you on the next video