What excites investors?

Question

I'm looking to start Wholesaling, and I'm curious to know what excites Investors/Cash Buyers?

Is there a mathematical formula that Investors primarily use implementing the ARV and a couple other factors? Please help me out if you can...

Trying to determine what houses to aggressively go after to put under contract.

I would appreciate any comment, big or small :)

Ned Carey · Answer

I see it is your second post so welcome to BP @Lorne Goree. The 70% minus repairs is a good rule of thumb. I also suggest you go to some pubic auctions (not courthouse step foreclosure auctions) and see what the  houses go for. You can inspect the house estimate what you think another investor will pay, and you will get instant feedback as to how close you were.

Will Pritchett · Answer

Just a good price with no fluff. Nothing flashy. If the deal is good enough (70 percent ARV-repairs) you will likely find a few buyers for all your deals. Just be upfront and honest with investors. Reputation is important.

Account Closed · Answer

What excites me - are settlements. Receiving my equity profits. The feeling of a transaction well done. There are many moving parts to a successful deal, lots of folks to deal with and to negotiate terms and agreements. There are emotions and numbers to consider. The numbers need to work and the emotions needs to be satisfied The key to profits when dealing with remote investing is controlling the property (that's the easy part) the important thing is get it sold and to settlement. I have been using my auction business model - control it and assign it within 3weeks. As is. All cash. No contingencies.

Lorne Goree · Answer

I appreciate that Rob, that makes a whole lot of sense

Lorne Goree · Answer

Ned, I appreciate your feedback !!!

Rob Myers · Answer

As a buy and hold investor, I don't really get "excited" when finding a new potential property.  It's all a numbers game - think of it as a pass/fail criteria.  The properties that do interest me more are those that fit my financial criteria that require less renovation than other properties in the area.  Renovation = risk.  If I can minimize my risk and still hit the same numbers it's a better deal for me.

Lorne Goree · Answer

Thanks Will, I appreciate your feedback, exactly what I was looking for !!!

What excites investors?

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