Creative Real Estate Investing Solutions — Cash Buyers and Transactional Lenders
A cash buyer is simply someone to who you can present the deal and they do not require traditional financing. This doesn’t just have to be people who are rich, it could also be someone who uses a hard money lender to fund a deal, someone who uses a line of credit that they already have access to, or someone who has a partner who can fund the deal with cash.
A natural question people tend to have is what comes first, the cash buyers or finding the deal?
And the answer is finding a great deal
- Because cash buyers are everywhere but they don’t mean anything without a great deal
- Find a niche and find the cash buyers for that niche
You can find Cash Buyers in many places. Here are some good places to try and strike up a conversation →
Landlords on Craigslist
Real Estate Clubs
Real Estate Agents
Online Lead Capture
- The deed
- The lien (obviously no lien for a cash sale)
- You can use a local title company
Hard Money Lenders
are a special kind of lender that funds back-to-back closings.
They wire money to the title company for a short time and the title company uses that money to buy the property and then resell it a few minutes later.
Fees generally range from 1–3 percent of the total transaction. Fees include additional document preparation fees, additional title company/attorney fees and additional recording fees -> all fees that add up