?ARE YOU A TIRE-KICKER OR A DEALMAKER?
Are you a tire kicker or a deal maker?
TIRE-KICKERS are unsure of indecisive of the market. They read a lot of information, spend a great deal of time looking around, inquiring but never really committing.
DEALMAKERS know their market. They also research the area but are ready and willing to move forward.
TIRE-KICKERS often do not have a specific financial goal or a solid investment strategy or executed business plan they are implementing.
DEALMAKERS won’t waste any time looking at properties that do not fit their identified criteria.
TIRE-KICKERS will often refuse offers to speak via phone or in person, preferring to keep correspondence limited to email. They also tend to be very slow in their responses.
DEALMAKERS are relatively easy to communicate with. They don’t hesitate to pick up the phone and call with inquiries, etc. Emails are typically responded within 24 hours or sooner.! !
TIRE-KICKERS often wait to find “the one” then worry about financing rather than having already established some relationships with lenders.
DEALMAKERS have already established lender relationships, is able to bid on all cash price deals or can is already pre-approved for loans.!
TIRE-KICKERS always seem to be easily lured away shopping around for the “holy grail”of real estate.
DEALMAKERS know there are plenty of “good” investments out there and will grab them along the way. They don’t necessarily hold out for the “holy grail” but rather recognize that good investments are plentiful and also lucrative.!
TIRE-KICKERS convinces himself he can manage the property cheaper by cutting corners and are not willing to make actual improvements and are often unwilling to utilize professionals when necessary, preferring the “wing it” or “do it yourself”approach.!!
DEALMAKERS look for reputable management companies to manage their investments so that they can spend their time building their portfolio. He/she knows just how to improve the property knowing he/she will enjoy the benefits of better quality tenants or higher sales price and less time on the market.
TIRE-KICKERS tend to capitalize the net operating income at a “market” rate for valuation not realizing that “fair market value” is tentative at best. They are often swayed by emotion or the opinion of the day.!!
DEALMAKERS, however, use a rate that will reflect their own return and loan requirements (i.e. rent roll history & fixed expenses) realizing that “fair market value” is not set in stone and simply what someone may someday be willing to pay for it. They base their decisions on hard facts, not public opinion.
TIRE-KICKERS tries to utilize a “once size fits all” method when creating a deal that will fit every situation (i.e. seller financing) and often submit “low ball” offers, often sight unseen, packed with a large number of contingencies.!!
DEALMAKERS make reasonable offers with few contingencies which often include 30 day inspection period and 30 day closing, with clear title, after he/she is satisfied with the inspection.
Summing things up, the main factor that identifies a dealmaker is preparation. The dealmaker has a well defined plan and the confidence to implement it and has his/her financing ready. Dealmakers knows each deal is unique and is willing to structure it according to meet the seller’s biggest needs. They don’t make the assumption that all purchase offers are the same and sellers will just cough up loads of time and information to just anyone who makes an offer. In Michigan, you don’t just submit an offer with your earnest money and expect to get into the property. Too many tire kickers have made sellers very skeptical around here. Dealmakers know exactly what sellers require (i.e. Letter of Intent to Purchase and/or Proof of Funds) and are ready to prove their validity.