Auctions Equal Cash Buyers! Auctions are without a doubt one of the best ways to increase your “cash buyers” list. Why? When you attend an auction the people who are bidding usually have to make a down payment of a minimum of $2500 or more. Now these same people tend to have cash and they’re looking to purchase at the best price possible.
So I imagine you’re wondering how do you tell which persons are the investors with cash at the auction, right? It simple… talk to them. Simply arrive during the walk through portion and just strike up a conversation about the property. Most investors will be a little tight lipped about their interest in a property because they want to avoid the price going to high or getting in a bid war. Here is what you do; when you suspect a person may be an investor just ask them if they are, I’m sure they will tell you. Once you have your answer then you start to ask your filter questions. Your filter questions are pre-qualify questions you would ask any investor looking to do business with you. Things like “how many properties are they looking to purchase in the next 6 months” and so on.
Auctions provide you with a buffet of people to choose from so you can usually add 5 to 15 cash investors to your list. There are a few things you need to have in place in order to take full advantage of what auctions offer you as far as the cash investors are concerned.
You want to attend a couple of auctions first before you go into attack mode while trying to build your list. Why? Many people today due to all the scam artists are a little leery of the new guy who all of a sudden pops up on the scene. Don’t worry, this will also make it easier to pick out who the investors are because you will begin to see them over and over at these auctions. At that point they will start to think you’re a new investor in the area. Again, when to start to talk to them they may be tight lipped because of this but you have a surprise for them.
Make sure you have a professional looking business card to hand out. I don’t mean the ones you do yourself on your computer. BudgetPrints.com offers 250 FREE business cards. Your cards should contain all of your contact information like; name, position, email, phone & fax numbers, website address and mailing address. The method I use when passing out my cards are as follows:
- During walk around I’ll strike up a conversation to find out if they’re an end buyer or an investor I haven’t seen before.
- When I determine they’re an investor I go through my filter questions, (don’t ask too many) I usually ask 3.
- I then usually ask them for their card before giving them mine. This usually makes the person ask if I have a card as well. When giving them my card I explain to them I’m a wholesale investor who comes across properties similar to the one being auctioned and if it’s alright for me to contact them when I have one. 99% of the time I get a YES!
- I then move on to the next person at the auction and repeat the process. If a person doesn’t have a card I usually have them write down their contact information in my notepad.
Know The Area:
Be as familiar as possible with the area and neighborhoods these auctions take place in. There is nothing like the damage you can do to yourself and your business by not knowing some important information about the area while talking to these potential cash investors. Let’s say an investor is very familiar with the area and you have no clue. Well, that investor may be a very active one in that neighborhood and constantly looking for good deals. He asks you a question about the area to see if you’re someone he wants to do business with (his filter question) and you have no clue or worse yet you try to give some answer that may sound good but it’s useless. You have just lost that investor and all the other investors they may know. The circle of active investors is small and tight so if the word gets out about you that can be bad. SO, MAKE SURE YOU DO YOUR RESEARCH!!! San Antonio cash home buyers can call Melissa Johnson for information.
A Few Words Of Caution:
While attending these auctions there are a few things you want to be mindful of and avoid.
- Be able to tell the difference between an end buyer and an investor. The end buyer you want to bypass them for several reasons, namely, they’re looking to purchase the property for themselves and will drive the price up during action, plus they usually won’t buy another property like an investor.
- Don’t piss off the people/company hosting the auctions. Some people/companies don’t mind you networking in this manner because they realize they may be able to present you with properties they turned down or couldn’t sale. Some have an issue with you building your list in this manner, if that is the case be respectful and stop doing so at their auctions.
- NEVER and I do mean NEVER, take fliers of the properties your offering to these auctions and pass them out. If you want your business of wholesaling to stop like yesterday, then go ahead and do it, but if you’re smart avoid the ever present urge to do this.