keep in mind when building your buyers list…

When I started wholesaling real estate in New York City right after college, I jumped right into it. How I did this is I found investor offices and went to work for one that I felt understood what I ultimately wanted to accomplish which is to open my own investment company. I did what they taught me on finding distressed property sellers. Fast forward to 2 years or so later, a few investor offices later, and I never made any money while working for any one of these investors. I would find deals, but what I did not know at the time, or at least didn’t put together until later was that it just wasn’t a deal for that individual investor. To be a real estate investor essentially means finding real property at a discount that one can wholesale or buy, spend time and money adding value to it, and then producing residual income or a profit at the end. These things come in different forms and investors are usually experienced in a few but not all. Today I have hundreds of investors in my contacts and I categorize them by what I know they have the most experience buying.

Knowing your buyers expertise is crucial when you are making a deal with a seller or agent representing a seller because the investor with experience on that specific type of deal will give the best and highest offer, they know their exit strategy(ies) so there’s less fear and perceived risk for them. The offer will be generally higher than an investor who has no experience and is offering less or a low amount because their perceived risk assessment is higher. 

When you are speaking to these buyers make sure you ask them if they are working with actual cash in the bank, hard money, mortgage, partnership, investment trust. Ask them generally what percentage down payment do they like to put on contracts. Ask them what specific areas they like to buy in, what kinds of property 1 families, multi units, mixed use , commercial, land, etc. Ask them for their attorney info, proof of funds, corporation docs, how long does it take them to close on average. Ask them for the last 2 deals they bought. All these questions will allow you to get a better understanding of how risky the buyer is, how much capital they are working with, how many properties they buy on average monthly, bi monthly, etc. Do not be afraid to ask your buyers questions because it will show them you are really trying to understand their investor eye so that you can send them deals that are pertinent and to their liking. STAY AWAY FROM INVESTORS that say they buy anything, everywhere. These people are wholesalers.

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