BiggerPockets

Charles... this is a great question and the responses should be very enlightening.

Some of the things I look for are this...

1. How are they getting financed?
2. What is their exit strategy (flip or rent)?
3. Number of bedrooms/bath, square footage, number of units or mix if a rental?
4. Location... Zip, neighborhood, etc.?
5. Type of buyers (1st time, etc.)?
6. Renovation complexity or dollar amount?
7. Number deals they want to take down in the next 12 months?
8. What percentage of the ARV are they looking to purchase at (this could also be percentage of ARV minus repair estimates).

These are few that I recommend to my clients and it seems to get the job done.

Hope this helps.

Pete

Charles... the truth is that I want a small but very reliable list.

A big list is hard to manage and it is very difficult to remember who wants what.

The list starts to get large until I start to have properties to assign and then the real players step up and take them down.

After a few deals it becomes very clear who is buying and who is foundation kicking.

I like smaller is better.

Pete

I also ask if there able to purchase more than one deal at a time and if they can close quickly. If so, how fast? Also for me i make sure i have emails. I'm not a big fan of trying to track down people to let them know i have a property, I simply email all the info and pics to all investors and whoever is interested contacts me. Saves time and less stress.

Rian & Kyan,

Do you prefer to keep your list shorter or do you work to have many potential buyers?

Do people prefer onetime homebuyers or investors that may buy many properties?

Originally posted by Charles Perkins

Rian & Kyan,

Do you prefer to keep your list shorter or do you work to have many potential buyers?

Do people prefer onetime homebuyers or investors that may buy many properties?

My list has about 4 solid cash buyers that buy almost anything if its a deal. I would perfer more but once properties came in they stepped up. Its working out good right now but the goal is always to get more, hoping i get more deals than they can keep up with.

I want investors who know what they want, been doing it, know a good deal, and have cash.

Great job Rian. A solid list is better than a long list that goes no where. Glad to hear it is working for you.

Knowing how a buyer proposes to finance or can pay in cash seems like not only a important consideration, but necessary. Some deals are going to require a cash buyer.

I'm pretty straight forward and throw out something like. " and how do you acquire your properties? Are you using bank financing, Hard money, cash?"

Is "cash" just ability to have the money already lined up either through private money, personal money, or similar means? For example if someone uses a private money source they are still paying cash, right?

There are two ways to look at it. If you pay all cash for a property, from your perspective this means you used your own cash. For example, if I say "I paid all cash for this property" I likely mean that I paid for it with my money.

From the seller's perspective, if they get an all-cash offer, it means they don't have to worry about a loan contingency, and they (usually) don't care where the money comes from as long as it shows up on time. However, I've seen some REO properties listed where it says they won't accept offers if a Hard Money Loan is involved.