How to approach an investor?

Question

Hello investors, I was wondering if you had any tips on what you look for when being approached by a wholesaler in need of cash buyers. Is there anything that sticks out to you? Or maybe something someone has said that peeked your interest? Or in general the most respectful way to present yourself when being approached? Thanks so much.

Nicholas Clement · Answer

@William Boeklen I look for honesty and straight forward deals that do not contain padded prices.

Tyler Weaver · Answer

They are going to be interested in knowing what your criteria is.  If you can illustrate this in terms of markets and ranges of purchase, ARV, and rehab that will be helpful.  If you can present deals you have done in the past that will be helpful to them.  The idea here is to get notified as stuff is coming down the pipeline that meets your criteria.

When vetting a wholesaler, it is good to talk to a client of theirs.  See a few of their previous deals etc.  But realistically it will come down to what deals they have, evaluating them for yourself, and seeing if they meet your criteria.

Dennis M. · Answer

In my area Most wholesalers are shady newbies and don’t understand the business So I have zero interest in working with them .they practice being a broker without a license . Their arv claims are laughable and they border on illegal activity to make 3-4 grand .

The average wholesaler is not considered very bright by seasoned investors because if they were they would understand how much money they are leaving on the table or throwing away by Foolishly giving others their deals for pennies .

John Corey · Answer

Anybody and their dog can claim to be a wholesaler. Too many broke, newbie investors claim to wholesale. They do not understand the deal mechanics so they fumble a lot.

Second, some really experienced wholesalers are really just sharks. Be very cautious.

When you find a great wholesaler, keep them close and treat them well.

If the wholesaler is really experienced, they will be used to dealing with new buyers. And they will have a process that they know works for them. It is a tough business as it is very transactional with a lot of ways a deal can go off the rails.

William Boeklen · Answer

@Tyler Weaver Thanks Tyler this was great!

Michael Lewis Lee · Answer

Hello William!  Their having to possibly lie and backstab, be careful.   They need to be very trustworthy, if you want a good deal.  It still has to be truly discounted so you can make a decent profit.  I agree with what Tyler said.

How to approach an investor?

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