Hi everybody it’s Rick speaking.
Let me talk to you about wholesaling for a minute. Whenever I speak to people about wholesaling, they say, “Well look, if I buy property from a seller, then I am going to have to find a buyer, well you might only be able to hold the property for a few days.”
I want to suggest to you that we change that model entirely. Because when we go around buying properties from sellers, our credibility is on how fast we can satisfy the requirements of that seller and get rid of that property. So let’s change it up a little bit. Let’s not go around looking of the sellers.
Let’s have advertise for our cash buyers. Let’s build ourselves a market of cash buyers. Now the way we’re going to do this so we don’t get mucked around by people is we put out ads that say “I wholesale properties. Looking for a cash buyers, cash buyers only need apply”.
What we do is, we then get them in by application and then we meet them. So we actually have to meet every cash buyer. So if you want to be in my books as a cash buyer, you’ve actually got to meet me specifically so I know exactly who you are, and I actually get feel about you because the last thing I want is somebody telling me they’re a cash buyer, I go and get them a property transaction, and then they can’t complete the transaction.
So here is how we’re going to solve that: when I get a cash buyer on application, I also want to know how many transactions he has ever done before as a cash buyer and then exactly what he looks for. Now anybody who says to me they’ll look for anything, forget it, I’m not interested.
Most of your people that you want are sophisticated investors. Now let me reframe that. When I say sophisticated, they’re financial investors. But a lot of them will be made up of say doctors, dentist, architects who have other full time jobs; don’t have time to build a property portfolio of their own. Quite often they have a lot of cash, they are highly seasoned professional people, but they simply have a lot on their books. They earn big money, but they just don’t have time to get out there and build property portfolios. So we get those people by application, we then meet them and then we’re going to get specifically what they want: how many bedrooms, how many bathrooms, what area, run down, done up, whatever.
And therefore, then we have on our books that when we go look for properties that people are selling, we already know who the buyer is that we have in mind. As a matter of fact, what we can do before we even buy the property, we could be speaking to our cash buyer saying, “Listen, we found what you are looking for, it’s this, this, this, this this.”
So the more we specific we get as we build our class of cash buyers, the more those people have respect for us, the more we can define what it is we actually buy and supply to people, and it gives us massive reassurance that when we’re going to negotiate transactions from sellers, that we’ve already presold that property because we have a body of cash buyers.
This is the secret. Most people run around trying to find the sellers to get the property and then they just can’t unload the property well enough or at the profit they wanted it. But if you have a whole bunch of seasoned cash buyers ready to go, who do not have time to build their own property portfolios, well they’re kind of sitting there in your database.
So therefore, it’s only a phone call, but you don’t connect with these people on the phone, it has to be a coffee shop meeting. You’ll probably do a lot of transactions with these people over years. You really want to know who they are, what they all about. There is nothing more reassuring than knowing you’ve already got a market place in place, so that when you’re negotiating a transaction, you already have it sold. It gives you an incredible comfort zone plus you also have an idea of what you’ll be able to sell it at.
Now of course there are a lot of things we can go with once we get this bit. But the one bit I wanted to make and get you guys on board with in this little video was to understand the power of having your buyers in place first, before we run around looking for properties.
Okay, speak soon, bye!