What Is Cash Buyer?
Also known as: End Buyer
A cash buyer is an investor who purchases properties without traditional financing and can close quickly. Cash buyers are the end buyers wholesalers assign or sell their contracts to.
A cash buyer is an investor who purchases properties without traditional financing and can close quickly. Cash buyers are the end buyers wholesalers assign or sell their contracts to.
Cash Buyer explained
Cash buyers are the demand side of wholesaling. Because they do not wait on mortgage approval or appraisals, they can close in days, which is exactly what a wholesale assignment needs. Most cash buyers are fix-and-flip investors or buy-and-hold landlords looking for discounted, off-market properties.
Successful wholesalers build and maintain a cash buyer list well before they have a deal, so disposition is fast when a contract is signed. They track each buyer's buy box: preferred areas, property types, price ranges, and condition. When a deal matches a buyer's criteria, the wholesaler can move it in hours instead of scrambling, which is what makes a consistent assignment business possible.
Example
You sign a contract Monday morning. Because you already know a flipper who buys 3/2 homes in that zip code under $160,000, you send it over, they confirm by afternoon, and the deal is assigned the same day.
Related VA Horizon resources
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