What are some vital questions to ask cash buyers when building a relationship/ dealing with cash buyers?
@Monét Marshall , In this situation I am assuming you are asking to partner with cash buyers.
People with cash do not necessarily understand real estate investing. Maybe they made their money in stocks or selling a business and they want to get in the real estate game because it looks fun.
#1 Let them know the time frame that you will need their money.
-If you are thinking long term (10 years) with an investment and they think real estate is cool now and in a year want to buy a Ferrari you will be forced to sell probably losing some money and then your name will be tarnished.
#2 Can they afford to pay in cash.
-If an investor has some money but not an emergency fund and something happens they will need their money back, screwing up the investment.
#3 I would want to know why they are not using the power of leverage and only putting 20% down.
- You may find out they are very very conservative with their money and if you planned to be aggressive with it that would not make a good partnership.
There are so many other questions to ask but I hope this gets you thinking. I with I had a cash buyer partner here in Steamboat Springs, CO. Good Luck!
Great information here! Thank you for responding!
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