What do investors look for

Question

to determine whether or not property and the project is worth investing in?

Mike

Kevin Boylan · Answer

All Cash,

I'd be interested to hear you answer to John's question too.

Frank Adams · Answer

Well my advice is not going to be specifically house related, more personal.

You wrote;

If you're "topped out" at 26 you need to take action. That action does not include buying a house. In fact I'd say you need to rent the cheapest place you can find and cut all living expenses to the bone.

Then get some education, whether it's college, trade school or what have you. I'd recommend a book titled "28 Days To The Work You Love". I think that's the title.

Visit your local junior college and see if they offer any vocational/aptitude testing. It might turn out that you have a real aptitude for something completely different than the family business and are totally unsuited for it.

Right now you're working for way less than the average income in the US. You could get a job today at Dairy Queen that pays more than you're  making.

The only thing that separates your life 5 years in the future from your life today is the books you'll read, the people you'll meet, and the education you'll acquire. Unless you still want to be in the same relative financial position when you're 36, 46, 56 and 66 you need to start taking action today.

Sorry if I sound a bit harsh, but I know what I'm talking about. When I was 25 I was pretty topped out too. HS graduate (barely) and a boss that promised me that if I didn't start educating myself up to my potential that he would do his best to make sure that my future performance ratings would ensure that my military caeer was over.

Get busy man. The future is up to you.

all cash

Mike Matthews · Answer

You can not answer that question I am sorry. I purchase home Subject to and I have no problem with little to no equity. As long as I get 2-3 mortgage payments out of the seller I will take the home. Provided the interest in 7.0 or below and fixed.

Claudio Alegre · Answer

I agree, but ultimately the best investors(not necessarily the good ones)[/i] are the best psychologists, they study human nature and social interactions and after they are done looking at your shoes......they'll look in your eyes and either feel confidence or trepidation......they can basically smell fear and treachery.....So, if you are going to present a deal to and investor...whether is a private, institutional, etc.......make sure you ask yourself the ultimate question...."is this a deal I would take on if I were on the other side of the table?"....if the answer is YES....make sure you've done your homework!......if the answer is NO.....pray that your dealing with a rookie or someone who doesnt care about their money.....Believe me if the deal has merit he'll do it and most likely he'll do business with you again, he'll lend you or JV, or invest with you once more.....and if he doesnt, he might recomend someone to you......and if he doesnt.....at least he'll respect you and keep you in his e-mail list.....who knows? you might get a call out of the blue one day......

take care

N/A N/A · Answer

One thought is that experienced investors know what they're willing to deal with. They know how to structure the deals they're looking for. So long as a transaction is within their scope of knowledge and experience, there's nothing to worry about, regardless of if the other person is green.

If a new guy brings an investor a deal where the math works out and the right clauses are in place, what's the problem?

N/A N/A · Answer

Interesting.. everyone says the money is the bottom line.. but I have learned that experience and knowledge is also extremely important to them. Why would they want to get involved with someone who doesn't know what they are doing, or can mess things up?

Any thoughts on this?

Lynn Z · Answer

Yeh, alot of condo "investors" in Miami are finding out how fast chasing a sure thing in real estate can turn on you overnight.   Did anyone see Schiller on tv last night advising home owners to stay put in their homes and if they own two or three-selling so not to have so much "exposure".   Newbies had better  know their market thoroughly by research and talking to mentors and  experienced investors before testing  the market these days.   Follow experienced advice.

Talked to a grandmother yesterday who's daughter moved in with her and  left her house (with her animals in order to show her house)--and one year later the water pipes burst and damaged the house significantly.  Took one year to sell and wound up with enormous expenses and a "tremendous loss" in value.  The realtor had assured her daughter it would take 6 weeks to sell the house.

Seasoned real estate brokers state few people have excellent credit while operating in a tighter lending environment.  Thin deals aren't going to get you anything but trouble.

Mike Binford · Answer

people who invest are looking for a cash cow! A property that has equity in it.

Lynn Z · Answer

I believe you should save significant down payment money.  Once you have that perhaps  your family would help you buy a cheap house or a duplex with you paying everything (taxes, insurance, maintenance, yardwork etc.)  The income from a triplex or a duplex leaves you sometimes paying little to nothing in rent yourself.   Remember you can only take expenses on the rental part of the deal.  Then, hold on to the property, puff it up, keep A1 tenant and sell in two years making part of the deal tax free.  Then you have some equity and you will learn to deal with tenants.

The only difference between  your situation and a young friend I know who bought 7 properties in the past two years is 1) MBA 2) His father and mother' s money 3) plan 4) desire to quit working as a bartender.  He's doing foreclosures (rehab), short sales, long term rentals, etc. all at once.  Other people's money and family financial backing.

N/A N/A · Answer

thank you that makes a lot of sense, and ive already spent alot $ for my credit.