What are buyers looking at closely when buying houses to flip?

[Christopher Campbell]

Hello!

My name is Chris Campbell and I'm an aspiring investor in San Antonio, TX.

The real estate market is strong here across residential (single and multi-family), commercial and land development. We're seeing nice and stable returns year over year per SABORs numbers and at least in Central Texas we aren't showing any signs of slowing down. In San Antonio specifically, there's a big opportunity in single-family affordable housing as there's a shortage and the city's population is continuing to grow at a quicker pace. I see this and land development as a really nice returns vehicle for the coming years. 

What I want to learn more about is what investors that typically look to pay cash or use hard money for their properties are taking closer looks at when analyzing deals. Are you going to live and die by %s? From the experience I have as a wholesaler I've discussed the % of the deal that my investors look for but what I find is that they're always in search of that unicorn 50%, 60%, or even 70% deal these days when there are so many low hanging fruit ~75% deals that can still bring a really great chunk of change on the back end. Obviously, the % of the deal is very important but I'm curious if there is value seen in doing good deals at slightly higher %s that still allow for sizable $ profits. If you can come across these deals without having to do all of the front-load work by working with wholesalers or having bird dogs on staff, is that just as interesting and worthwhile as the occasional unicorn you're fighting the mob for? I guess I'm wanting to know if making a specific $ amount per deal is just as worthwhile in the seasoned investor's eye as the %s?

Investor insights will be greatly appreciated. This will help me expand my business as well as better connect with the investors I currently work with and any future investors I work with. 

Thank you,

Chris