We’re pretty sure that moderate to experienced investors knows the importance of having cash buyer information readily available. This is true in any industry where you want to find investors for your product or services.
Having cash buyers will save you headaches as you don’t have to deal with banks and interest rates. Your cash flow have an immediate impact based on whether or not you can turn around your investments as well. This type of data plays a major role for investors and professionals in the real estate industry.
Property wholesalers are looking to flip their investments quickly so they can use the additional cash flow to re-invest into more properites. They do not want to deal with buyers that requires long closing time and therefore, are more willing to negotiate the prices if they have cash buyers approaching them instead.
Even if you had your own cash buyer list, you probably have to put your cash buyers into different categories and demographics based on what they are looking to purchase. This is probably one of the most daunting task to take because we have to do a lot of leg work to organize the data appropriately so that we can target these cash buyers whenever a property is out in the market.
For me personally, whenever I sell my investment property, I would lookup all the cash buyers I have that are the closest to this property. This gives me better odds of getting rid of it in a shorter time because I know these cash buyers have interest in the area and they have a good understanding of what is in the area. It won’t take them too much time thinking about it because once you give them the numbers, they already know whether or not it a good deal.
Mapping out the properties that the cash buyers have purchased in your area gives you something visual. That’s something my team and I do on a regular basis for analyzing purchasing trends of these buyers. You’ll be surprised to see that the cash buyers might be purchasing in this area but not 2-3 blocks away for that area. By looking at these data points, we can now decide whether or not to close some of our own deals. Some deals might look really good, but what’s the point of getting it if you can’t find a buyer for it.
Using data analytic tools as part of your strategy to flip houses will give you a definite competitive advantage. Knowing what your buyers want and whom to target will help you build long term relationship and trusts. Which investor doesn’t want to work long term with someone that knows exactly what they want and can find them deals quickly.