What is a Buyer/ Investor looking for?

Question

Hi Everyone,

I am new to Investing and have a question.  As many answers as I get from other Investors  that wholesale, rehab, flip or buy and hold I would be really grateful. I am in Broward county, South Florida so if you are interested in these parts let me know also :)

When I am looking for properties, what is going to be a good deal for me to pursue? Is it a home with a lot of equity (but would they want to sell?), or a home under water? If its a home under water how would that work? Would I wholesale to an investor interested in seller financing only?

I am trying to understand the mind of the Investor/buyer so that I can do an excellent job (and someday eventually become one)!

On another note should I be looking at SFH only or would Investors be potentially interested in 1 or 2 bedroom condos in the South Flo area?

Your Feedback would be greatly appreciated!

Brian Gibbons · Answer

@Nicola

Here is a form to use on all sellers

You are looking for a problem with the property or the seller (probate, divorce etc)

Then contact us

If there are loans tell us

-----------------------------

Address __________________________________________ Date _________

Location / Cross Street _______________________________ Map Pg# _____

Seller _______________________ Ph# ____________ Alt. Ph# ___________

Listing Agent _________________ Ph# ____________ Alt. Ph# ___________

CONDITION

__Occupied / __Vacant _____ Bed/_____ Bath Construction _____________

A/C ___________ Elect. Amps ________ Garage _____ Year Built _______

Roof ____________________________________________________________

Exterior __________________________________________________________

Interior __________________________________________________________

Kitchen __________________________________________________________

Baths ___________________________________________________________

Plumbing ________________________________________________________

Appliances _______________________________________________________

Neighborhood ____________________________________________________

Other Work Needed ________________________________________________

________________________________________________________________

FINANCIALS

1st Lien Bal. $_________ 2nd lien Bal. $_________ In Foreclosure: __Yes/__No

Asking Price $_________ My Offer $_________ Resell Approx. $__________

Terms: __ Subject To, __ Agr. For Deed, __ Seller Fin., __ Lease Option, __ All Cash

Additional Notes __________________________________________________

________________________________________________________________

CONTACT RECORD

Name Date Note

_________________________ _____________ ____________________

@Nicola Harvey

Rick H. · Answer

@Nicola Harvey You are trying to determine if there an opportunity exists. In the mist simple terms, you are either trying to buy equity or cash flow at a discounts in order to make a profit.

In order to know what you can pay for something, for instance, you need need to know what you can sell it for (and estimate the costs of repairs, dealing with other problems along the way, holding costs and resale cost). That's over-simplified but that's it in a nutshell.

Your job is to find people who want have something that they want to sell or trade with enough room for a profit margin. Brian's sheet is an internal lead intake sheet to help you organize your questions and responses by principal.

Most people begin looking for owners with a problem to solve who are will to trade equity in return for a buyer dealing with the hassles. You become a lead generator, aka bird dog or opportunity detective sniffing deals and feeding to your investor(s). The investors' criteria will differ as well as their patience with you.

Since fish don't usually jump into the boat, you'll have to make up for lack if exoereince and knowledge by taking massive action.

Brian Gibbons · Answer

@Nicola Harvey

Here are questions to ask any seller

The objective is to find either good wholesale deals or pretty house terms deals

Home Seller – Questions to ask

The following is a list of sample questions you should ask a seller. When talking

to a seller, try to ask the questions through the course of a conversation and try

not to sound like you are reading from a list.

(Note: You will not ask all of these questions depending on the answers the

seller gives and your investing objectives.)

Asking About The Seller And Their Property:

Asking About The Existing Financing:

from sales price to

get loan balance.)

What Kind Of Deal Can You Get:

(Follow-up by asking if that is truly the least they would take.)

guarantee the mortgage

payments and maintenance?

or cost to you?

Brian Gibbons · Answer

to "make fish jumping to the boat" start off with expired listings,

and show them that compared with selling with an agent, paying the costs to sell, such as commissions at 6%, closing cost of 2%, sellers concessions as much is 3%, holding calls of PITI as much as 3 to 6 months, etc,

you can assist them in doing some kind of a turn still such as lease to own or subject to or wraparound mortgage

You need a good lawyer and a rmlo for these deals

Nicola Harvey · Answer

@Brian Gibbons Thank you! Do you put this form with a yellow letter or do you give this to the seller when they make contact with you?

What is a Buyer/ Investor looking for?

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