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Devin Cannon
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What Questions Will Investors Ask

Devin Cannon
Posted Jan 26 2022, 16:14

Hello, I have came across an investment opportunity that is 65 properties under one listing, that has flipping potential and is seemingly well under market value. We currently are in the very early stages, (We haven't been into any of the properties, only talked to realtors and agencies about the properties and the process of the undertaking) While we are scheduling the walk through of each property for the next few weeks. My question is, since this is such a big purchase, I will be going to investors that I know and pleading my case, as to why, this is a good investment (Assuming that is the conclusion, that my partner and I come to) I will do so, with a portfolio of all of the properties. What all would you want to see in the portfolio if someone had brought this investment to you? I am specifically only looking for what to include for the portfolio about the properties and not credentials, agreements and LLC information Etc.

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Bob Okenwa
  • Real Estate Agent/Investor
  • Peoria, AZ
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Bob Okenwa
  • Real Estate Agent/Investor
  • Peoria, AZ
Replied Jan 26 2022, 16:33

@Devin Cannon

The most basic questions would be how much and how long? Beyond that a general list is below.

In no specific order:

What is my return?

When will I get paid?

What is your experience level?

Have you done a project of this size before?

What is your plan?

What is your backup plan/exit strategy should this go sideways like 2008? (Not likely, but you never know)

What is your timeline?

How much will it cost?

Who is doing the work?

Who is managing the contractors?

Who is selling these properties

What level of rehab are you doing?

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Eric James
  • Malakoff, TX
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Eric James
  • Malakoff, TX
Replied Jan 26 2022, 17:53
Originally posted by @Bob Okenwa:

@Devin Cannon

The most basic questions would be how much and how long? Beyond that a general list is below.

In no specific order:

What is my return?

When will I get paid?

What is your experience level?

Have you done a project of this size before?

What is your plan?

What is your backup plan/exit strategy should this go sideways like 2008? (Not likely, but you never know)

What is your timeline?

How much will it cost?

Who is doing the work?

Who is managing the contractors?

Who is selling these properties

What level of rehab are you doing?

You forgot: Do you have a license to sell real estate?

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Devin Cannon
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Devin Cannon
Replied Jan 26 2022, 18:17

@Eric James I am not sure why anyone would ask that question, when you can hire that out... Am I not understanding?

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Jonathan Greene
  • Specialist
  • Mendham, NJ
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Jonathan Greene
  • Specialist
  • Mendham, NJ
Replied Jan 26 2022, 18:18

Have you done any deals before? Has your partner? If not, you aren't selling a 65-property portfolio deal to any investors unless they are also buying swampland in the Everglades.

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Devin Cannon
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Devin Cannon
Replied Jan 26 2022, 18:25

@Jonathan Greene I have done smaller deals but this has nothing to do with my question. Also if you don't aim big you will always fall short. Now do you have any advice about my question?

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Jonathan Greene
  • Specialist
  • Mendham, NJ
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Jonathan Greene
  • Specialist
  • Mendham, NJ
Replied Jan 27 2022, 07:15

@Devin Cannon you are already falling into the trap of echo chamber "investors". If I've been investing for 30 years and spend a lot of time each day responding to posts to help investors, do you really think your response is what's going to get you anywhere? If any person tells you that you are going to be able to sell a 65-unit deal to investors, with no background in real estate close to this scale, they are just setting you up for failure. Just because you ask a much too specific question in a public forum doesn't mean you will only get answers to your question when that question needs about 100 things unraveled to even make sense. Best of luck.