As a birddog/property locator, what questions should I ask in order to identify a successful investor to work with?
Get to know how he lend out his money. He is a CA investor I deal with scenario:
Here is a scenario that we like.
A seasoned investment company or investor purchases properties all cash at Trustee Sale, REO’s from Banks /Feds etc, For sale buy owners, but purchase these properties at discount. Usually 65 to 70% of market value.
We like to see track record and we like to create a ongoing business relationship. Meaning we want VOLUME on a regular basis.
Value of property SFR after fix up $300,000.00
Purchase price at auction $200,000.00
Fix up costs $ 20,000.00
Our hard $$ leverage 70% of purchase price + fix up money
70% X 220,000 = $154,000.00
Terms of loan depending on volume and time lines
3 to 5 points, 9 to 12% interest only, up to 1 year
close 4 days close after Trustee’s Deed Upon Sale
Can set up payments out and full service, meaning
streamline of business for investor company.