Discussion Questions for Agents with Investor Buyers.

Do you evaluate potential investment properties for your buyers? If yes what methods do you use to determine the merits of the property.

How detailed are the buyers requirements when you are asked to locate investment properties?

Those listing investment properties.

How often are you unable to answer questions posed to you from a buyer or buyers agent dealing with the sellers Schedule E

That sure is a lot of questions. :-) I use software from REIWise as well as financial spreadsheets that have been passed onto me from other financial advisors to evaluate deals. I mainly work with residential rentals, so work with people who want cashflow. Some want to flip a house, which is a totally different objective.

We mainly look at the price versus comps, rental rates, after repair value, neighborhood condition, how fast homes sell in the area, schools and other local amenities, proximity to public transportation, etc. If the unit is a rental, we have to evaluate how long they plan to hold the property and who their target renter is for the area. This helps us determine the right rental amount which goes back to price...the property has to completely support itself. If not, it better be cheap enough that we can sell it for profit later.

Of course, they have to work with their CPA, lawyer, financial advisor. I give full disclaimers, but can help them gather market data. They decide on the final plan.

It depends on the type of deal and the person.

Some investors I work with want to do their own research. So all they want from me is a list of foreclosures. Others want me to hold their hand and provide comps and an idea of what it will cost to repair.

How I determine which they are interested in is most investors will have a certain % compared to fmv they buy at.

Most multifamily investors want rent rolls for a year or so. And info on fair market rent amounts.

Commercial investors is a little different all together.

Listings I am usually able to gather enough info at the time of the listing to where I am able to answer most any question.

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