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10 Questions to Ask Investors Before Adding Them to Your Wholesale Buyers List

by Stephani Davis on November 26, 2009 · 5 comments

  
real estate sign

If you’re a wholesaler, having a rock solid buyers list can be a tremendous help once you get a property under contract. Like I mentioned in my last post- one of the easiest ways to alienate the investors on your list is by repeatedly sending them deals that do not fit their criteria.   To prevent this from happening, I recommend pre-screening your potential buyers in order to find out exactly what type of deals they are looking for.

Following is a list of questions that I always ask investors before I add them to my buyers list:

  • Are you a cash buyer?  If not, what type of financing will you be obtaining?
  • What neighborhoods do you prefer to buy in?
  • What price range (ballpark) are you looking to buy at in those particular areas?
  • Are there any parts of town that you will not buy in?
  • Is there a minimum number of bedrooms and/or bathrooms that you require, or a minimum amount of square footage?
  • What type of construction do you prefer (wood frame, concrete block, etc.)?
  • Do you only buy single family properties, or are you also interested in multi-family?
  • Are you looking for properties to rehab and resell, or do you plan to buy and hold?
  • Are you willing to do full rehabs, or are you looking for cosmetic fixer uppers only?
  • How soon are you looking to buy, and how much time do you typically need to close?

By pre-screening your investors and asking them these ten questions, you will be able to get a very clear picture of what it is that they are looking for in a deal, and will reduce your chances of burning through your buyers list by sending out deals to your investors that do not fit their buying criteria.

Photo: Chris Griffith

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{ 5 comments… read them below or add one }

Linda C. November 30, 2009 at 2:11 pm

This is a great reminder that investors come in different shapes and sizes. If you don’t cater to each person in a specific and personal way, they will be less responsive and you will have less success than you would otherwise.

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Patrick November 30, 2009 at 2:51 pm

That last question is spot on! “How soon are you looking to buy, and how much time do you typically need to close?” I always want to know this first. I have a couple more things I do that you can see at [REMOVED]

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Michael Perry December 6, 2009 at 4:21 pm

Steph, another excellent article.

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J. Lamar Ferren December 6, 2009 at 6:41 pm

I really love how you took the time to break this down Steph. I think Im going to implement some of these questions in my screening process in order to improve my list response. Thank you for sharing! :-)

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Litia Niumeitolu May 28, 2011 at 12:31 pm

Thank You very much Steph for taking time to help me out. This is most helpful. I am using this to scree a cash buyer. Again Thank You.

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