INVESTORS- The Dirty Dozen Pre-Qual Questions...and then some

As an REO Listing Agent, specializing in the local market of Hemet and San Jacinto, CA  bank owned (REO) real estate, my listings generate a lot of activity in the real estate investment world.

Real Estate Investors are unlike first time buyers.  They should never be emotionally attached to any single transaction; for the real estate investor it is all about the numbers and what makes sense.  Whereas the first time home buyer or even the repeat buyer, is looking for a place to call home and raise a family.  The good news is the Hemet - San Jacinto Valley has plenty of inventory to satisfy both.

When working with investors I have a process where I try to determine just what each investor is looking for - they each have their own ideas of what they want to invest in and control.  I will often refer to this as the Investors Flavor, as in the popular ice cream store that boasts over 30 flavors...well here in the Hemet  - San Jacinto Valley we too have many flavors to choose from, for the savvy real estate investor.

When getting to know my investor clients I often hear of the mistakes that other real estate agents continue to make with them.  Perhaps the biggest problem investors have with real estate agents is that they just don't listen.  When an investor is looking for a very particular profile to fill their portfolio they do not want to be inundated with emails for every property that hits the MLS.  This is perhaps the easiest way to alienate the investors on the REALTORS® prospect list.

Just like with any potential client, it is necessary for the professional real estate agent to pre-screen their potential investor buyers.  Just like any script, there always has to be wiggle room, as rarely does a conversation go as anticipated.

QUSTIONS TO PRE QUAL THE REAL ESTATE INVESTOR

So, here are the questions I use to start identifying what flavor of investor I am working with...

1)         Are you buying with cash?  If not, what type of financing do you plan on using?

2)         If you have cash, have you considered hard money to leverage the maximum investment power of your cash?

3)         How many properties do you now control?  Are they in your name or that of a separate entity?  What is your relation to the entity?

4)         Do you have specific neighborhoods in the Hemet - San Jacinto Valley that you want to concentrate in?  Is this negotiable?

5)         Do you have specific neighborhoods in the Hemet - San Jacinto Valley that you want to avoid?  Is this negotiable?

6)         Do you have a minimum or maximum number of bedrooms? Bathrooms, Square footage? Lot Size?  Any other specific requirements as far as the home?

7)         What about type of construction?  Our market id dominated by stucco homes.  What about wood siding? Concrete Block? Vinyl Siding?

8)         Are you interested in only Single Family Residences?  What about Duplexes, Four-plexes, Mobile Homes, Condos?

9)         Is your strategy to buy and hold and develop wealth or to buy and flip for cash flow?

10)       What condition property are you looking for?  Do you only want cosmetic repairs or are you prepared for a full rehab?

11)       How long do you need to close escrow?  How soon are you looking to start submitting offers?

12)       Is there anyone else involved in your decision making process?

There are other questions to ask as well once I am comfortable with the answers to the above questions...

1)         Who is the REALTOR® on their last deal?  Why aren't they working with them now?

2)         If we put together a successful transaction, will you agree to work with me exclusively in my market, so long as I continue to perform up to your expectations?

3)         If you are ever disappointed in anything I do, will you share that with me and not let it fester between us?

4)         Where, besides the Hemet - San Jacinto Valley, CA are you interested in acquiring investment real estate?

5)         As an Investor / Consumer, what is your most useful tool to look at MLS and market data?  Would you like me to set you up with an account to see most of the MLS they way I see it - fresh and without ad's?

6)         I also have a service that generates very detail market reports every 7 days, would this be of interest to you?

I have found that by spending the time to pre-screen an investor client when they are interested in buying investment real estate in the Hemet - San Jacinto Valley, like any other is time well spent.  Ask these dozen questions and you'll have a clear idea of just what the investor is looking for.  This will greatly reduce the burnout factor of your investors moving on to other agents who do listen to them and won't send them every deal that comes along, but only those that are the specific flavor your investor is looking for.