One Thing I’m Learning About Disposition: Think Like the Investor

[Clement Oigoga Adams]

The Best Disposition Professionals Think Like Investors

One thing I’ve been thinking about as I learn more about the disposition side of real estate is this:

Is the job really about marketing a property, or is it about understanding the investor on the other side of the transaction?

I’m starting to believe it’s much more of the second.

A property can look great on paper, but that doesn’t necessarily mean it’s a great opportunity for every buyer.

An experienced fix-and-flip investor may be looking closely at the purchase price, renovation budget, resale value, and potential ROI.

A buy-and-hold investor may care more about cash flow, long-term appreciation, tenant demand, and how the property fits into their portfolio.

Someone using a BRRRR strategy may be thinking about the after-repair value, refinance potential, rental numbers, and how quickly they can recycle their capital.

And then there’s risk tolerance.

Two investors can look at the exact same property and come to completely different conclusions because their goals, strategies, available capital, and tolerance for risk are different.

That’s why I think the best disposition professionals have to think beyond simply asking:

“Who can I sell this property to?”

A better question might be:

“Who is this opportunity actually a good fit for, and why?”

I’m still learning how experienced buyers analyze deals, and honestly, that’s one of the areas I want to understand better.

The more I understand what buyers care about, the better I can communicate opportunities, set realistic expectations, and hopefully become more valuable to the people I want to build long-term relationships with.

For the experienced investors here:

What information do you absolutely need to see before you’ll seriously consider a deal?

Is it the numbers? Exit strategy? Comps? Renovation estimates? Rental projections? Location? Risk factors?

And what’s something newer people often leave out that makes you immediately lose interest?

I’d genuinely like to learn from the investors who have been doing this for years.