What is a Buyer/ Investor looking for?

[Nicola Harvey]

Hi Everyone,

I am new to Investing and have a question.  As many answers as I get from other Investors that wholesale, rehab, flip or buy and hold I would be really grateful. I am in Broward county, South Florida so if you are interested in these parts let me know also :)

When I am looking for properties, what is going to be a good deal for me to pursue? Is it a home with a lot of equity (but would they want to sell?), or a home under water? If its a home under water how would that work? Would I wholesale to an investor interested in seller financing only?

I am trying to understand the mind of the Investor/buyer so that I can do an excellent job (and someday eventually become one)!

On another note should I be looking at SFH only or would Investors be potentially interested in 1 or 2 bedroom condos in the South Flo area?

Your Feedback would be greatly appreciated!

[Brian Gibbons]

@Nicola 

Here is a form to use on all sellers

You are looking for a problem with the property or the seller (probate, divorce etc)

Then contact us

If there are loans tell us

-----------------------------

Address __________________________________________ Date _________

Location / Cross Street _______________________________ Map Pg# _____

Seller _______________________ Ph# ____________ Alt. Ph# ___________

Listing Agent _________________ Ph# ____________ Alt. Ph# ___________

CONDITION

__Occupied / __Vacant _____ Bed/_____ Bath Construction _____________

A/C ___________ Elect. Amps ________ Garage _____ Year Built _______

Roof ____________________________________________________________

Exterior __________________________________________________________

Interior __________________________________________________________

Kitchen __________________________________________________________

Baths ___________________________________________________________

Plumbing ________________________________________________________

Appliances _______________________________________________________

Neighborhood ____________________________________________________

Other Work Needed ________________________________________________

________________________________________________________________

FINANCIALS

1st Lien Bal. $_________ 2nd lien Bal. $_________ In Foreclosure: __Yes/__No

Asking Price $_________ My Offer $_________ Resell Approx. $__________

Terms: __ Subject To, __ Agr. For Deed, __ Seller Fin., __ Lease Option, __ All Cash

Additional Notes __________________________________________________

________________________________________________________________

________________________________________________________________

CONTACT RECORD

Name Date Note

_________________________ _____________ ____________________

_________________________ _____________ ____________________

_________________________ _____________ ____________________

_________________________ _____________ ____________________

_________________________ _____________ ____________________

_________________________ _____________ ____________________

@Nicola Harvey

[Nicola Harvey]

@Brian Gibbons Thank you! Do you put this form with a yellow letter or do you give this to the seller when they make contact with you?  

[Cathy Wells]

Nicola Harvey welcome!

I'd use the form above via a phone conversation to weed out useless leads. Tip: let them talk and give you information. Ask lots of questions. How can you help them?

Listen to episode 77 on podcast for some good tips on closing on homes.

So what am I looking for? A great deal. There are so many blah or mediocre deals that come across my desk. Give accurate repair estimates if you provide them and accurate ARVs if you provide those. Don't send me comps on houses with pools from 2013 if this house is pool-less. Don't send me a deal with a $10,000 profit margin. Oh, and I want to feel I can trust you.

If you can find a good deal and do the work of clinching it, you're suddenly a popular wholesaler. The more you look at, the more you clinch, the more in demand you become.

That's the way I see it anyway.

[Brian Gibbons]

@Nicola Harvey

Here are questions to ask any seller

The objective is to find either good wholesale deals or pretty house terms deals

Home Seller – Questions to ask

The following is a list of sample questions you should ask a seller. When talking

to a seller, try to ask the questions through the course of a conversation and try

not to sound like you are reading from a list.

(Note: You will not ask all of these questions depending on the answers the

seller gives and your investing objectives.)

Asking About The Seller And Their Property:

Can you tell me a little bit about your home? (# of bedrooms, baths, size etc.)

What do you like most about the home?

What do you like the least?

Are there any repairs needed?

What is your sales price and how did you arrive at it?

What do you think your house would appraise for in excellent condition?

What do you think your property could rent for?

Is your property listed with a real estate agent?

If you don’t mind me asking, why are you selling?

Asking About The Existing Financing:

Do you own the house free and clear?

Do you know if your mortgage loan assumable?

Would you sell the house for what you owe?

If not, how much are you looking to get above what you owe? (Subtract that

from sales price to

get loan balance.)

How much are the monthly payment on the mortgage?

Are the payments current?

What Kind Of Deal Can You Get:

If I paid you all cash and closed quickly, what is the least you could take?

(Follow-up by asking if that is truly the least they would take.)

Will you consider leasing the property to me with an option to buy if I

guarantee the mortgage

payments and maintenance?

Do you have a problem with someone living in the property until I get it sold?

Would you consider optioning the property to me, if there is absolutely no risk

or cost to you?

[Rick H.]

@Nicola Harvey You are trying to determine if there an opportunity exists. In the mist simple terms, you are either trying to buy equity or cash flow at a discounts in order to make a profit.

In order to know what you can pay for something, for instance, you need need to know what you can sell it for (and estimate the costs of repairs, dealing with other problems along the way, holding costs and resale cost). That's over-simplified but that's it in a nutshell. 

Your job is to find people who want have something that they want to sell or trade with enough room for a profit margin. Brian's sheet is an internal lead intake sheet to help you organize your questions and responses by principal. 

Most people begin looking for owners with a problem to solve who are will to trade equity in return for a buyer dealing with the hassles. You become a lead generator, aka bird dog or opportunity detective sniffing deals and feeding to your investor(s). The investors' criteria will differ as well as their patience with you. 

Since fish don't usually jump into the boat, you'll have to make up for lack if exoereince and knowledge by taking massive action. 

[Brian Gibbons]

to "make fish jumping to the boat" start off with expired listings, 

and show them that compared with selling with an agent, paying the costs to sell, such as commissions at 6%, closing cost of 2%, sellers concessions as much is 3%, holding calls of PITI as much as 3 to 6 months, etc,

you can assist them in doing some kind of a turn still such as lease to own or subject to or wraparound mortgage

You need a good lawyer and a rmlo for these deals

[Nicola Harvey]

Thank you all so much for your input. I truly appreciate it!!!