looking for successful tactics in working with remote investors

[Jimmy O'Connor]

I currently have a handful of investors that are working either from another state or country. In my business of selling distressed properties, this proves to be difficult because when the good deals come in, the deal is already sold. I have been working on streamlining the process such as setting up a contractor network but I lose valuable hours waiting on contractors to create a scope of work or their contacts in the area to run additional comps. 

Has anyone in the BP ethos managed to establish a successful relationship with long distance investor that they are able to make a decision in a day or less for properties that fit their criteria?

[Ritch Bonisa]

@Jimmy O'Connor I'm a rehab consultant and cost analyst.   Alot of times we evaluate within 24 hours. Works great.  We do the scope of work ourselves.  This helps to determine whether or not the deal will work for the client and it also sets the benchmark for our network of contractors -  keeps pricing in line. 

We also buy and sell properties.  I mean purchase, not wholesale. We don't really care if the property comes from our own property group or not - totally insignificant for us.  We evaluate the properties we buy, just like we evaluate other wholesale properties for our clients.  

The hard part is probably developing the scope and putting costs with it.  Not that difficult for us.  But this is probably the true key to it. 

The overall evaluation is really easy.  We work backwards. We know potential purchase price.  We pull comps and make sure they are actual comps, garage/no garage, sf, all the way down the line, tight radius, etc. (That can be done in 5 minutes.)  We establish a target. 

Look at any photos with the listing or whatever the seller is putting out there. Ask ourselves, does this even warrant a site visit.  If it doesn't - then game over.  If it does, we go out and see it live, spend 2 hours, come back put together rehab costs - 1-2 hours, maybe more.  Idea is:  What will  it take (rehab) to hit the target. 

Look at holding costs, insurance, any retail fees, etc. Consider realistic investor returns.  

Now we know what the property is worth.  Doesn't matter what someone is asking for it.  What is it worth to my client, or to me?  If the shoe fits - we wear it.  If it doesn't, we move on down the road. 

I think the trick is to figure out which one's are total junk from the office.  Don't waste time.  

There is alot of junk out there. There are also alot of investors that want to pick up a property and then worry about rehab numbers later.  Big mistake.  I don't ever think you can force a deal to work.  It either does, or it doesn't.  

Once you've established the systems - it's really about following the steps and being disciplined when it comes time to say NO.