Roselle, NJ · Member since 2015 · 75 posts · 16 votes
Hi all,
How do you go about finding cash transactions on the mls and knowing where the sweet spots are for cash buyers and investors? What returns are investors looking for at the moment, especially in the current seller's market that we are in at the moment. Even if you aren't from NJ, feel free to contribute!
Rental Property Investor · Lancaster, PA · Member since 2012 · 28 posts · 5 votes
8y
Right now, through my experience and analysis (I've analyzed over 100 transactions brought to me on the MLS this year), anything on the MLS is between $75,000 and $100,000 too expensive for an investor.
Realtor · Paterson, NJ · Member since 2017 · 134 posts · 97 votes
8y
Hey Pierre,
Do you have access to the MLS now? If so, then which one? You are going to have to look at the recently sold properties in the area and change the "Sale Terms" to Cash.
What are investors is looking for in terms of ROI? Well that depends on the investor and what strategy they focus on. Investors that are buying a property to rent out are buying strictly for cash flow. The returns are either higher or much lower depending on the area they plan to buy in. On the other side investors that are planning to buy property to flip are looking for at least to take home 15% of the ARV.
Roselle, NJ · Member since 2015 · 75 posts · 16 votes
8y
@Noel Challenger I have access to the GSMLS and Im struggling to find sales terms on there. I guess by asking for required returns I wanted to see how expensive deals are becoming and if Investors are willing to pay a little more than they would say 5 years ago. In my business I use the MAO= (ARVx.65)-Repairs-Wholesale fee but I may need to use (70-75% these days)
Id also like to know where those sweet spot areas are. It's obviously easier to find discounted properties in lower end areas but I'd like to analyze what areas are investors purchasing in? Places that are growing?