A STEP-BY-STEP GUIDE: HOW TO PROPERLY ANALYZE A PROPERTY

KEEP IN MIND:
FINDING • Stay within areas that have lots of sold activity Every market is different in

STEP 1
• Stay within areas that have cash buyer purchases determining your “hot spot” area(s). It’d recommend
THE HOT • Find out what is being sold the most
• Determine the maximum purchase number cash
making sure there has been at least 20 or more solds
from cash buyers within the last 90 days on one
SPOT(S) buyers are paying particular area.

• What is the average values your SHORT CUT: Use Google Maps, NEED TO KNOW: If there are a lot
EVALUATING
STEP 2
cash buyers like the most? street, and aerial view. This will give of properties being rehabbed by
• What is the average days on yourself a good grasp of the area(s) investors, then go after properties
THE HOT market (DOM)? you’ll be contracting properties. The that warrant rehabbing. The same
• Are a lot of properties within this more you know on the particular areas thing goes if your hot spot market
SPOT(S) area being rented or rehabbed? you’re planting roots in the better. warrants a rental market.

BEST ADVICE: Build a solid relationship with a

HO TO GET • Multiple Listing Service (MLS) • FSBO.com (For Sale By Owner)

STEP 3
• Realtor.com • Broker Price Opinion (BPO) realtor that can give you accurate data on a
ACCURATE • Zillow.com • Appraisal consistent basis. What you need to receive from
a realtor is a Comparative Market Analysis or
• Trulia.com
VALUES also known as a CMA for short.

IMPORTANT: In order for you to make all 4 steps work quickly and
PUTTING • Make contact with real estate agents that

STEP 4
represent cash buyers effectively put together a business plan you can visual see on a daily
IT ALL • Know exactly what the cash buyers want and go
get it (we’ve gone over this within the first 3 steps)
basis with the goals you want to accomplish. With your goals in front
you, make sure you take massive action with the steps put forth in
TOGETHER • Find a closing company that is investor friendly this infograph. Your chances of success will be greatly increased.

HOW TO:
Finding a title company shouldn’t be a challenge, but if it is you should contact some real
estate agents that deal with investors on a regular basis. From there you can simply ask them
what title company are they currently using. This should give you several referrals from agents.
A STEP-BY-STEP GUIDE: HOW TO FIND CASH BUYERS
WHAT KIND OF • Can buy quickly at maximum of $80,000 KEEP IN MIND: Every market is different in what the

STEP 1
• Wants 3 bedrooms/1bathroom properties
CASH BUYERS • None warzone areas
maximum amounts could be for trying to qualify cash
buyers for or at. Make sure you identify what your
TO FIND • Just single-family residence maximum sweet spot is.

SHORT CUT: Networking with local title companies will

STEP 2
WHERE TO FIND • Title Companies • Craigslist
always be able to plug you into investors that are buying
• Public Records • Multiple Listing Sevice
CASH BUYERS • Realtors • REO/Tax Sale Auctions
properties with cash. Title company reps can easily make
an introduction for you. Just make sure you close deals
with them.

• Direct Mailing

STEP 3
MARKETING TO • Direct Emailing
NEED TO KNOW: Send out hand written letters to
CASH BUYERS • Phone Calls
potential cash buyers prospects. The response rate you’ll
receive will be 10x higher than a typed document.
• Personal Introduction

CASH DATABASE IMPORTANT: Make

STEP 4
sure once you have cash buyers
• Email Service Platform put into your contacts database, that you’re following up
IS GROWING: • Weekly or Bi-Weekly Phone Calls with them at least once a week or at the very least on a
KEEPING bi-weekly basis. Keeping in “touch” with your new
IN CONTACT contacts will help enhance the relationship drastically.

CASH DATABASE

STEP 4
STEP 1 Send out email and/or give a quick phone call STEP 4 Close
IS GROWING: STEP 2 Get property with cash buyer under contract STEP 5 Make money
KEEPING STEP 3 Coordinate closing with Title Company
IN CONTACT
A STEP-BY-STEP GUIDE: WHAT TO SAY TO CASH BUYERS
• Ask for a POF (proof of funds) letter IMPORTANT: I would not accept a POF FYI: When dealing with the
VETTING

STEP 1
• Bank statement showing liquidity letter from a cah buyer if it’s not coming “vetting” process make sure
THE CASH • Retirement account statement from a legitimate source. Transactional funds from the cash buyer are
BUYER • Stocks, Bonds, etc statement funding letters in my opinion don’t count ready available and can be
for what we’re trying to accomplish here. liquid within 24-48hours.

• Closing to take place with 3-5 business HELPFUL: Buyers may want additional DON’T FORGET: Always require a “hard
ESTABLISHING

STEP 2
days after contracted executed time for closing outside of the 3-5 deposit” from the buyer meaning they put a
AUTHORITY • Use “MY” title company for the closings
• Funds to be wired 24 hours prior to
business days. and as long as it’s for earnest money/deposit down on the property
godd reason, “grant” it. Due diligence knowing this will be non-refundable. This is
PROPERTY closing could take 7-10 days for title review, crucial in making sure the buyer signing a
• Hard deposit required inspection, appraisal, etc. contract can really close.

KNOWING WHAT BUZZ WORDS: Using the “right” buzz word(s) with

STEP 3
• Off-Market • Move-In Ready
• Below Market Value • Handyman Special & TLC your cash buyers can make a huge difference in not
TO SAY TO GET • Lots of Equity • Rehabber Delight only the response you receive from the marketing put
DEALS CLOSED • Exclusive forth, but could force a bidding war between buyers
warranting a higher purchase price.

STEP 4
DOCUMENTS • “Hard Deposit” check due within 24 hours PURCHASE AGREEMENT: Use a purchase
• Fully executed purchase agreement between ALL parties agreement to d o an “A-B”, “B-C” transaction. It is NOT
NEEDED FROM • Assignment contract full executed between ALL parties necessary to have an assignment contract if you’re
CASH BUYER doing two separate transactions.

HOW TO:
Before the “subject” property is taken off from having other cash buyers submitting
offers, make sure either a certified “hard deposit” cheque is received or waiting until
a personal/business cheque clears to where funds are within the bank.