5 Creative Ways to Find Cash Buyers that Work!
I’m sure we don’t have to remind you how important networking is when it comes to Wholesaling and flipping. In fact, it’s an essential part of the Real Estate business and is critical to finding more deals and often times, the BEST deals!
Meet Holly McKhann who owns HouseFlip Masters.
Today you will learn some SUPER creative ways to find MORE cash buyers because…Holly is a GREAT cash buyer!
She is a total rockstar and shares a wealth of Real Estate knowledge on everything from buying and appraising deals from Wholesalers to how she approaches every deal and believes no project too big for her!
In this episode, you will discover that contrary to the popular belief that finding Cash Buyers is hard to do, there are actually a lot of creative ways to find them, and Holly shares a TON here!
Learn how Holly is rocking it in her business and even more, learn how she gets these deals without necessarily doing any direct marketing.
IN THIS EPISODE YOU’LL LEARN:
- How Holly started to fall in love with construction
- Buying everything at auction during the crash
- How she found another SUPER effective way to find deals
- A ninja strategy that she used to network with wholesalers
- The power of meeting people face to face
- What the California market looks like today (and how it compares to other markets)
- What do Wholesalers and cash buyers have in common?
- Why she doesn’t do direct marketing
- and so much more…
LINKS AND RESOURCES MENTIONED IN THIS EPISODE:
- Modern Pacific Homes – https://www.modernpacifichomes.com/about.html
- Craigslist – https://www.craigslist.org
- Secrets to Real Estate Investing – https://www.houseflipmasters.com/podcast.html
- Facebook Profile – https://www.facebook.com/HouseFlipMasters/
- BOOK REC: The One Thing by Gary Keller
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Cody Hofhine: Welcome to another episode of wholesaling inc by investor grit. My name is Cody hotline and I am so excited to deliver nothing but meat and potatoes in today’s episode. We’ve got Holly McCann, and she is an absolute rock star in what she does. She’s a cash buyer for all of us wholesalers, an amazing cash buyer can close quick. She fixed and flipped homes and there is literally no project too big for her.
She can do the high end home, the low end home, you name it, she does it. She’s based out of California. If you live in California, you might even see her wear a pink construction hard hat as she has in like helping her team of contractors lead and guide them through the whole remodel. She is there step-by-step like pointing the way she knows her stuff. In fact, her knowledge of construction absolutely blows my mind. Holly, can you hear me? Are you with us?
Holly McKhann: I am here.
Cody Hofhine: And by the way, listeners, you will absolutely love Holly’s energy. This will get you so motivated to have nothing but Hollies of cash buyers on your list because she is an absolute rock star and she knows when there’s a deal and she can pull a trigger super quick.
So let’s break down some of the things you do. What is it that, to kind of give us a little intro, a little bit of background, like what area of real estate do you do and kind of tell us a little bit about yourself and yeah, what’s like your specialty when it comes to real estate?
Holly McKhann: Sure. Well, my real estate journey super began, totally began way back when I was 22 and I called my now husband, and asked him out on a date, and that was going to be our first date. Yes. I go after what I want and we actually talked on that call about wanting to fix and flip houses, and we didn’t really do anything about it other than work on our own houses.
Yeah, I laid tile, I scraped popcorn ceilings while pregnant. I did a lot of stuff, which was really great for us to learn about the details of construction. And when someone ripping us off, if they tell us, “Oh, it’s going to take five hours to do that, we’re like, Hmm. No, that’s one hour.” So the more you know about construction, that’s all side note, the more helpful it is to you. And knowing whether someone’s ripping you off.
But we didn’t really kind of get back into it. We both had corporate America stints and I stayed home while I had four babies. I don’t know if I would call that a break, but yeah, I have four children now ages 14 to 22, and we dove into real estate strong and hard, like about eight years ago. And we just started buying one at a time to fix and flip.
We came into some money from a land deal that my husband did, and we invested that money in fix and flips. And initially we bought everything at auction. It was so easy. Banks were just giving them away at 50 to 65% [crosstalk 00:03:48].
Cody Hofhine: And this is during like the crash, right? This, I mean you’re saying eight years ago, like you’re in the beginning and the thick of when the market turned for the worst, right?
Holly McKhann: Oh yeah. 2008 and we were definitely, doing it on the way down, if that makes sense. But you know you’re in, you’re out fast and we didn’t, I don’t think we really lost much if any money on those we did really well, and what I would call the low end, like the 100 to $250,000 price point, which is low end for California. That’s out in what we call the inland empire.
So next, after this little stint with the courthouse steps, buying an auction where we could just buy, as much as we want, with as much cash as we could get together. These big hedge funds moved in and pushed us little guys out of the picture. They bought at huge price points, like way above where we could buy to flip. They would pay full market value sometimes because they just need to make it work where there’s a rental. So can you guess what I did then? When I had to retool and look for another place to find deals?
Cody Hofhine: We’re ready. We are ready. Listen rhino nation, listen to what she is going to drop right here.
Holly McKhann: My next hundred plus houses that I bought was all through networking. That’s through relationships with realtors. So you wholesalers can go build relationships with realtors and also from wholesalers. That’s how I started getting all my deals, starting probably three plus years ago.
Cody Hofhine: So this is why it’s so key, that we wanted to interview so bad on this podcast. Its for the fact that, so many wholesalers need to know that there are cash buyers like salivating, just ready, ready, ready. And I hope I’m not overselling this, but is. this not true? Like you are waiting, like there is not too many that you can’t handle it once? You can handle 10 projects, 15 projects. Help my wholesalers understand that no, we are here, and we want deals, and we need them.
Holly McKhann: Oh absolutely. In California right now. In California, it’s a pretty competitive market. I’m super reliant on them. The last couple of deals I bought were through wholesalers. I need you guys at are wholesalers to go find me deals and bring them to me. And Cody, I don’t think we talked about this in advance, but I’d love to share a strategy that I’ve used with wholesalers. It may be your audience.
could apply in their own business. Is that okay?
Cody Hofhine: I would absolutely love it. Any gold nuggets that you can share is like worth it. Absolutely fine.
Holly McKhann: Okay. So when I’ve met wholesalers at real estate investment clubs or I will call them off their bandit signs and say, “Put me on your list, I’m a cash buyer.” I offer a proof of funds to them. If they’ll give me the first opportunity, first right of refusal on their deals, I’ll say, “Hey, here’s my proof of funds, it’s got a million bucks. Go out and find me some properties. Tell people that you work for my company.” I’ve even bought people business cards with my company name on it.
My company names’ Modern Pacific Homes. That’s my flipping company. And I’ll say, “Here, take business cards. Talk about how your team has flipped over 200 houses.” Because wouldn’t that build a lot of credibility? How do you think a realtor would respond to that Cody versus someone that’s just like, “I think I’m going to try and get a house to sell to someone else.” Like, what do you think the realtor is going to want to deal with?
Cody Hofhine: Key. Absolutely experienced, right?
Holly McKhann: Absolutely. Yeah. So yeah, look for a cash buyer investor, or if you’re in Southern California you can get in contact with me, and ask that cash buyer if you can have their proof of funds and represent you. Obviously you need to learn enough about their company that you can represent them well, to really look like part of the team.
But you’re going to be able to find that cash buyer more deals with this strategy than perhaps just being on your own. Especially if you’re brand new and starting out.
Cody Hofhine: Sure. Tell my listeners this, as a wholesaler, what does that process look like? Like when you start talking, how do you typically find wholesalers? How do you typically get yourself in front of wholesalers so that they connect with you? You guys connect and then you can start doing business moving forward.
You’ve shared just one already, is wholesalers might post up. Sounds like in the state of California they might put up like bandit signs saying that they have cash deals. But what are other areas where you found out like this has been one of the easiest ways and best ways that I connect myself with wholesalers?
Holly McKhann: I would say, the real estate investment clubs are great. Because I’ve met a lot of people at those clubs that are new and learning, just starting out. And that’s where I find the hungry motivated wholesalers that I’m excited to work with. I haven’t really found them honestly anywhere besides the bandit signs, and real estate clubs. I’ve heard people say though that they find them on Craigslist too. So that’s a good option is if you want to advertise on Craigslist, if you are the wholesaler. And a lot of times too, it helps to connect with other wholesalers.
If you’re a new wholesaler, try and connect with other ones and ask them if you guys could ever work together on a deal, if you have a deal and don’t have a buyer, could you offer to split the fee with them? If they sell it for you, like put out on their list? So I think that’s another good possible strategy too. And part of it could just be to have an accountability partner, or someone that you can call and bounce ideas off of. If you get someone kind of in your same area of expertise, and same level of experience, you guys could be good to help each other, and motivate each other, and bounce ideas off each other.
Cody Hofhine: Awesome. Here’s the key thing. She said some key points I want to just focus on for one second, and the main thing is exactly the first one she said and that is, real estate investor associations. If you will Google, Real Estate Investor Association, you will find out pretty much every state, every County, is trying to have some kind of investor meetup group.
And I’m telling you this is the number one way, that I, as a wholesaler find my cash buyers. As I go and network. Because how much better Holly is it when I meet you face to face, verse everything being done over the phone and you don’t know anything about me? I think by phone anyone can learn to impress you, but when it’s face to face, you truly get to understand and I truly get understand who you are, and you get a truly understand who I am. Would you agree with that?
Holly McKhann: Amen brother. 100%. [crosstalk 00:10:33]
Cody Hofhine: And really, it’s so true. How many times have you talked with cash buyers like, “Oh yeah, I do this, this, this” and then come to find out you have this smoking hot deal and this cash buyer can’t even perform. Come to find out he’s never done it. He’s just getting into it. And likewise, wholesalers, how many times have also said, “I’ve got this great deal, I do about 20 deals a month” and then come to find out they’re like $50,000 too high, and this is the first home that they’ve ever tried to put under contract. Does that happen in your market as well, or is this something that’s just here local where I live in Utah?
Holly McKhann: No, sure it happens. Nobody’s perfect, everybody’s trying. That’s another thing too, is if you get some kind of a mentor, maybe it’s a person that you want to sell deals to like me, the mentor can train you on how to not only find a great deal, but then what’s important about the deal, and how to present it in the most attractive way to a cash buyer.
Cody Hofhine: Absolutely. So while you’re at these networking groups, by the way, which is my number one favorite way to find cash buyers. The best thing I can tell you about cash buyers like Holly, is I let my cash buyers teach me everything about my market. At the end of the day, this may sound a little bit rude, I don’t care what the realtors are going to tell me because they’re not buying my deals. It’s my cash buyers in my market. And so I will go out and sit with them. Whether that’s through lunch, whether that’s just at these REIA events, the Real Estate Investors Association events, or some form of communication. And I will learn like what is their hot areas? What areas do they love? What’s their favorite zip code? What style of home are they looking for?
And as you do this, your cash buyers like “Yes, in that zip code I’m looking for a ranch style home, and I’m looking for a minimum of 3000 square feet, and if you find these deals in this zip code, I’m willing to pay X amount of dollars.” From there as a wholesaler, you were just taught some amazing gold nuggets. Like now you know the market. Again, it matters what your cash buyers can pay for it. It’s not so much worrying about what realtors tell you, unless they’re your cash buyer. So I absolutely love networking with cash buyers because they teach me more about my market than anyone. More than appraisers, more than real estate agents. It’s my cash buyers that teach me what I need to do when I put a home under contract.
Holly McKhann: Excellent. Hey, I got two little things that popped out at me while you were saying that. Number one, this is a key language idea that I developed with trial and error with realtors. Because frequently when a realtor brings me a deal I say, “What’s the after repaired value?” And I tell him “That means it’s in good condition, it’s going to be probably just a little bit above the other homes in the neighborhood because I don’t mind to be so beautiful.”
But I asked them, “What do you think it will sell for? Not what will you list it for?” Because plenty of them will just blow smoke and say, “Oh it’s going to list for 800,000.” Well their real opinion is it might sell for 730. But they still want to try and list it for 800. So make sure you ask the realtor, “What will it sell for?” You get a different answer every time. I’ve found that with the hundreds of realtors I’ve spoken to. So use that.
And then another little tip is when you’re sitting down with a mentor or cash buyer, or even if you’re on the phone with them say, “Hey, would you mind giving me an address of a house that you flipped?” And even if you don’t have MLS access, you can see, I know Zillow shows them past sale points. I think most of them do.
Cody Hofhine: Absolutely.
Holly McKhann: What did they pay for it? What did they sell it for? If there’s some old pictures, I was just going to deal like this yesterday. We could see the old pictures, and the after pictures because Zillow just had them all up. And then you could see what they did to it, how nice they made it, learn their style and learn about construction costs. Like how much their repair budget should be. Is it X dollars per square foot? Or whatever they like to use.
Cody Hofhine: Perfect. Now California is going to be a different market than where I’m from here in Utah. And so I’m kind of curious to see what California market really is from you. We’re talking, what area are we talking that you actually from and that’s what you’re the one you’re looking for. You’re looking for what area in California?
Holly McKhann: I am a little unusual that I’m really broad and where I’ll work. We do everything from the North side of LA, down to San Diego, out East to Riverside. I have three houses in Palm Springs even which I don’t want to do anymore out there because I got left holding the bag of three of them after the last winter season. But I’m really broad in my base and I’ve got some that I’ve bought from 100,000 all the way up to 700,000. I’m pretty wide in my scope of acceptability.
Cody Hofhine: Perfect. And are you looking for a final price of 700,000? Or even an acquisition of 700,000 that could sell for, “I’m making these numbers up,” 1.3 million?
Holly McKhann: You guess pretty right. Now those are my acquisition prices. Out the door price. My high one in studio city, we’re going to list for 1.4 million hopefully next month.
Cody Hofhine: Cool. Now I could have seen it sounds like a handful of these homes that you have been working on and have worked on, as I was just barely in your neck of the woods with my family. Vacationing at Newport beach. And we were right along the LA, the Riverside and all that fun stuff. And what a beautiful area.
Holly McKhann: Yeah, it feels like vacation. I’m very fortunate to live just a mile from the water. In a house that we bought to flip, and then we decided to move into it ourselves because it’s so awesome here. But yeah, I live in Dana Point California. And it’s a beautiful place to live and to work.
Cody Hofhine: So just like a cash buyer and a wholesaler. Some of the unique characteristics as I’m hearing from what you’re just said, that I think is key. Wholesalers and cash buyers, or those that are doing the fix and flip. We share something in common that she just said that I absolutely love, and why I love being a wholesaler is you get to cherry pick your best deals. Sometimes I’m thinking, “Okay, I’m going to wholesale this home.” And it ends up being like your best rental.
In this case, Holly finds this home she thinks, “Oh, this could be a great fix and flip.” But then you realize no, “This is going to be my baby that I’m going to be living in now.” That’s the unique characteristics that comes with investing, that I absolutely will not trade in for anything. Is that you get a cherry pick, truly cherry pick your absolute best deals and either keep them like you did and live in them, or keep them as rentals.
But it all starts with, again, and Holly will say this… It all starts with wholesalers finding those deals and she is ready every single day to hear from us wholesalers. To buy deals from us. So that she can do her expertise, which is rehabing that home and putting it right back on the market.
Holly McKhann: That is so well said. And when people ask me like, “Oh, why don’t you do direct marketing and postcards and all this stuff?” I said- [crosstalk 00:17:35].
Cody Hofhine: Yeah, why don’t you? Let’s note this down.
Holly McKhann: There’s not enough hours in the day for me to do everything and do it well. So, I really like the second phase, after someone else finds me the deal. Let me buy it from them. Give them a nice little piece of the profit bringing me the deal. And then I will do the complete fix and flip and resell it because I’m a realtor. So, I love that aspect of it too. And doing the transaction.
Cody Hofhine: Liquid gold ready, get ready. What was said was, “Liquid gold.” I have to point these out because they connect, they resonate with me so good. And what you just said is perfect. She doesn’t want to do direct mail marketing. She doesn’t want to become a wholesaler. But why is it that Holly is so successful at rehabbing homes? She focuses on, and there’s a book that I would recommend highly to everyone listening today. It’s called the one thing.
And Holly at best is explaining that she focuses on one thing. She focuses on the rehab. The fix and flip and put back on the market. Wholesalers, don’t get involved in cross territories and do the fix and flip. Focus on the one thing. You want to be the best wholesaler out there, the best only focus on wholesaling. You want to be the best rehabber out there, focus only on rehabbing. And when you do that, and you truly focus on just one thing, that’s when you will be successful as an investor in this real estate economy.
Even in the times of like 2008, everyone’s like, “No way am I getting into this.” Holly’s like, “Absolutely, I’m jumping into this.” There was no time better, and more millionaires were made during the great depression than any other time in the history of the United States. Holly followed that and said, “You know what, this is my time to jump in and really make a killing.” And she’s done super well, because she knows her market and she focuses on one thing. And I absolutely love that. Holly.
Holly McKhann: Well thank you. And I do have that book on my nightstand right now. So thank you for reminding me how great it is.
Cody Hofhine: The greatest book I’m telling you. All corporations that succeed is because they have people focusing on one thing and not many things. Perfect. Now tell me this, if my listeners, let’s say they are wholesalers, let’s say they are rehabbers like yourself, doing the fix and flip. What is the best way to get in contact with you? And by the way, you do a podcast yourself. I was interviewed on your show and I absolutely… That’s how I got to know you. And loved our time. But how do they reach out to listen to your podcast? How do they reach out to you if they want to add you as a cash buyer? What is the best way to do that?
Holly McKhann: Well, thank you for mentioning my podcast. My podcast, you can find on iTunes or the Android versions of that. It’s called Secrets to Real Estate Investing by House Flip Masters. The cover image is me in a pink hard hat. So you can’t miss me. And I’ve been in New and Noteworthy way longer than I thought I was allowed to be. So you might find me in there still too. I would recommend too, if you listen to that podcast, check out episode four with Jackie Mendoza who’s got a very inspirational story.
She made over $100,000 wholesale fee in Southern California. It probably wouldn’t happen in Utah. Maybe it could, I don’t know. But she’s really inspirational. She is a mom, and she’s making this happen. So that’s episode four. And then of course you got to come and listen to Cody’s. He’s going to be episode 30 when that’s published in the next few weeks.
Cody Hofhine: Episode 30. I love it. You’re exploded this. It’s not like 1 2 10 that’s it, no, you’re at 30 now?
Holly McKhann: Yeah.
Cody Hofhine: Rock and roll.
Holly McKhann: I sure am brother. You got to catch up to me.
Cody Hofhine: We have a long ways to catch up with you.
Holly McKhann: Well also people can find me through my website, which is, houseflipmasters.com. You can find me on Facebook and I’ve got lots of fun little videos on Facebook, on my business page, house flip masters. Lots of one minute videos with tips. Mostly about construction. But I also have deal finding and networking tips on there too. So hopefully I can give some value to your listeners with those avenues.
Cody Hofhine: Perfect. And if they want you to be a cash buyer the list? Should they enter through that houseflipmasters.com? Is there like a way to leave comments on there, or to reach out to you by email?
Holly McKhann: Yes, there definitely is. And my last name is, my name is H-O-L-L-Y and M-C K-H-A-N-N I know it’s a hard one. That’s why I give you house flip masters. That’s a lot easier to find.
Cody Hofhine: It is Holly McKhann, which a lot of people like myself thought it was how Holly McKhonn and it’s McKhann. So Holly, I can’t thank you enough. You’re a rock star. You keep doing what you’re doing, because I love cash buyers like you. That are ready to pull triggers and grab the deals that I find. And I know wholesalers nationwide are looking for cash buyers just like you. So we appreciate you and I can’t thank you enough for being on the show. Thank you so much, Holly.
Holly McKhann: You’re welcome. And wholesalers. Bring me some deals. I’m ready for some more.
Cody Hofhine: Awesome. Get over here to Utah. I’ll give you 10 a month.
Holly McKhann: Well, if I didn’t love the beach so much, I would be there, my friend.
Cody Hofhine: Perfect. All right, Rhino Nation. To learn more about wholesaling, hoteling homes, log onto investor grit.com that’s investor G-R-I-T.com. Book a strategy call. Get on there, mess around with the site. Look how successful some of the wholesalers are nationwide and reach out to us. And if we like what you have to say, we just might invite you to be part of The Tribe, to be a Rhino. Take care Rhino Nation.