Over the years, I have been involved in many real estate transactions involving genuine and non-genuine real estate professionals.
On an average day of prospecting I will correspond via phone or email with over 100 hundred people. Unfortunately 99% of my correspondence tends to be with individuals that are incompetent and time wasters.
To become a CIA of Real Estate, one must have the following:
In order to successfully make a deal happen you need to have the CASH– if you want to purchase yourself. INFLUENCE- so you can influence others to purchase. Or AUTHORITY– to make decisions on behalf of other investors/groups.
After getting burnt in the past on a few deals that didn’t go through, I decided to develop precautionary measures that help in distinguishing a time waster from a CIA.
When you come across a potential buyer that poses to purchase “numerous” properties on a “regular” basis, and they guarantee to have the financial capacity to do so. Once they have viewed your marketing materials, be it a brochure on an individual property or a spread sheet on a bulk package.
There should be no reason for them to take longer than 48 hours to submit an offer through a LOI (Letter of Intent) and with the offer, show a POF (Proof of Funds). Once the LOI and POF are submitted within the accepted time frame- the next step would be to evaluate the letter of intent.
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What a CIA Can Do
A CIA with a team and systems in place that purchases numerous properties on a regular basis, should not take longer than 10 days to conduct all due diligence (up to fifteen single family homes), especially if the seller has all lease agreements and title work on hand and ready to send at any moment. They should also have access to a reputable title company which should not take more than 5 days to do the title search.
By having a genuine interest in the property(s), this CIA should also be willing to put down a minimum deposit of $1,000 per house (if the asking price per property is up to $50,000) and be able to execute the entire purchase on or within a 14 day time frame, once the 10 day due diligence has been accepted.
To often I’ve come across big time “investors” who promise everything but deliver nothing as they submit an offer requesting unnecessarily long due diligence ,extended close and other stupid clauses in the LOI that clearly show their inability to perform.
When our group is in the acquisition stage- and has the CASH, INFLUENCE, or AUTHORITY. As well as the knowledge on the particular property or market. From that moment on, all that is needed moving forward is for a purchase price to be agreed on, a general inspection to be carried out, and the title to be in clear standing.
If all of this is in order and sorted, If need be, I will happily strap the check to my speedos, swim across the ocean, and deliver it to the buyers closing company— first hand and in person. (Please excuse the visual of me in a Speedo lol)
Don’t forget that a serious and genuine buyer ls always willing to put their skin in the game with a down payment and go out of their way to make it a smooth and quick transaction.
As the saying goes “Money Speaks Every Language”
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