How to find cash buyers for apartment buildings. It’s the second most important part of the process, right in there behind finding a smoking hot deal. It is where the money comes from to close the deal, so it’s definitely important.
Too often though, ‘important’ gets equated to hard, or difficult.
If you have done your work properly in finding and negotiating a deal worth doing, and not cut any corners, finding a serious buyer with cash who wants to close asap, is almost a formality. There is work involved, of course, but the right tools and process flush out an end-buyer pretty easily.
How To Build A Buyers List
For the sake of example, you have a deal coming together. The seller is motivated, occupancy is 50%, rents haven’t been raised in 5 years, there is deferred maintenance, you have sent your LOI to the owner and after a bit of back and forth he signs and faxes you a copy of the signed agreement.
The property is in Lawrence Township, Indianapolis.
Time to get going with finding a buyer. Faxed LOI in hand and hard copies in the mail, this is the perfect opportunity to reach out and make contact with potential buyers.
So think, if you have a deal in a certain part of town, who are the people most likely to want to buy it?
Well, other apartment owners successfully operating apartment buildings in the same area.
Wouldn’t you agree?
Key word: “successfully”.
They already know the area, have done the research, and are comfortable owning property there. Owning another property nearby their existing property increases the return on their original research, helps create synergy with marketing for tenants, and builds their brand.
Plus buying out your competitors is always a good business move.
So a good sized list of high probability buyers are right there in your immediate vicinity. All you need to do is contact them, and ask them if they’re interested. (more…)
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