Cody Sperber

Targeting Cash Buyers & Private Lenders
by Cody Sperber

Creative Real Estate Investing Cash Buyers Private Lenders

In order to make that cash money you so desire through real estate investing, you need to target cash buyers and private lenders. You remember me sharing about the 7 Tips to Start Investing - What You Don't Need to Start Investing, as well as the 3 Types of Sellers & Exactly How I Handle Each of Them - both of those investing articles will help you get your business off the ground. 

Now, let’s jump back to those cash buyers and private lenders…

Cash Buyers, Private Lenders - Who Are Those Guys, Anyway?

Landlords or rehabbers looking for deals to make money, for example, are cash buyers. They could be part timers or 24/7 professionals who – simply put – have cash to burn. You want these guys… no, you need these guys on your side to make money in this business.

And the way to a cash buyer’s heart is with this simple formula:

Cash + Actively Investing = Potential Deal

Got it? Good. Because you need to know this formula if you’re going to successfully work with cash buyers who (btw) will only know you exist if you reach out to them.

And before you reach out to them, you need to understand the cash buyers, by nature, are going to be skeptical. They’ve been approached and pitched to more times than you can imagine, so you need to prove to them that you won’t waste their time.

Related VideoHow To Find Real Estate Investors From Public Records

Best Way To Approach Cash Buyers/Private Lenders = Push the Perceived Benefits

You need to sell them on the perceived benefits of working with you.

Cash buyers need to fully grasp how working with you will benefit them. Here are some potential reasons why:

  • You can bring them deals with deep discounts
  • You will do all the heavy lifting for them
  • You will (in theory) make properties magically appear
  • You will prove to them that you’re skilled and strategic in your processes
  • You will make the transactions simple and seamless
  • They can leverage your time and resources
  • You are doing them a great service
  • They will receive higher, secure returns
  • You will accept any price range

Prove to your cash buyers that you’re all this and a bag of chips, and you’re in.

Remember that the tipping point – that time when your buyer finally takes action – happens when he or she realizes that the benefit of working with you is far greater than the time and money he/she would need to personally invest.

Understand that these perceived benefits are also logical benefits, which are the selling points that you want to push through your marketing and advertising. Speak directly to your cash buyers’ logical needs, then transition to their emotional needs once you have them on the phone.

Yes, You Do Know Private Lenders

Finding Cash Buyers/Private Lenders Friends

You’re grounded, right now, if you say one more time that you don’t know any private lenders…

I promise that you do!

Someone, somewhere in your world – right now – has what we call “lazy money,” which simply means money sitting in a bank account. Or ‘mattress money,’ which is cash someone has, that for whatever reason, is just lying around. The only way you’re going to find out who has the cash is to speak up.

Related ArticleHow To Find Private Lenders From Public Records

Look, I was nervous when I first started in this business. I was terrified to ask people for money. I mean, talk about an uncomfortable conversation, right? But in time, I realized that I didn’t have to ask for the money. In fact, I shouldn’t (like, ever) ask for the money.

Instead, I offered those around me opportunities, chances to change their lives for the better.

And the tables started to turn.

Not to throw more math equations your way, but this one too is simple (so suck it up). Remember this formula for finding financial friends (nice alliteration, huh?)

Lazy money + Need for Better Return = Potential Deal

Learn it, because you’re going to love it.

I sure as heck do! Know why? I raised my first million from a guy I hired to drive properties for me. He was making peanuts and he had a family to support. So curiosity got the best of me, and one day I asked him how the heck he was able to survive on such little pay.

From there, I learned that he was a trust fund kid (and that had I never asked, I never would have known). Then I thought, “The worst he can say is no,” so I asked him if he was interested in making some returns… and would he lend me some money.

Just like that, I had a check for $1 million in my hand.

Not even kidding.

All I had to do was ask about his financial situation, and then ask if he wanted to do some business together.

And the rest, as they say, is history.

Investors - It All Boils Down to This

Creative Real Estate Investing Cash Buyers Private Lenders 2

Both cash buyers and private lenders need to understand and feel the perceived benefits (listed above) of working with you.

Remember that those buyers and lenders will only take action once you’ve established a relationship with them and built trust. Then, they need to experience that moment of clarity when they realize that working with you means opportunity not risk.

And don’t forget about effective marketing. Be sure to eliminate the negatives and reinforce the positives in all your marketing materials and push the perceived logical benefits, so that when the phone rings (and it will ring), you can play to the emotional benefits of your buyers and lenders.

Cody Sperber
As a veteran of the armed forces (NAVY), Cody learned that ethics, honor, and commitment can tell a lot about a person. After being released with an honorary discharge, he attended ASU, receiving a degree in Finance (Magna Cum Laude). Cody then received his real estate license 3 years after he first began investing in real estate because he was tired of working with horrible Realtors that were just trying to make a quick commission.

Cody began focusing on different strategies to help clients Avoid Foreclosure. Cody worked with underwater owners arranging short sales. This led to the development of his Reverse Short Sale Secret. Cody continues to buy and sell millions of dollars worth of real estate every year. In addition he has created a series of free real estate investor training tools for new investors.

Cody trains and mentors a handful of dedicated investors. When it comes to succeeding in real estate investing, Cody grows daily and helps others to do the same. Cody breaks the silence on methodologies that have launched successful real estate investing careers. He explains the top four ways to amass real wealth using real estate whether you are a new or a seasoned investor. His approach is sound and his presentation is clear and concise.

Cody Sperber is recognized as one of the young guns of real estate investing. He thrives on encouraging and educating fellow investors. Cody Sperber's philosophy is to give you all you need to be successful before he ever requires anything on your part more than the commitment to learn.

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