There may be more than two different kinds of real estate investors but, in this scenario, we have only two. One of my colleagues is so frustrated with an out of state investor that she may fire her. Keep in mind that this real estate agent works with investors from all over the world. See what you think:
Investor #1: Flys into Kansas City with all their paperwork in order - including their corporation documents needed to write the offer.
Investor #2: Flys into Kansas City with no paperwork, saying she forgot or didn't know she needed it.
Investor #1: Knows exactly which name goes on each property. (Has multiple corporations)
Investor #2: Can't decide; isn't sure.
Investor #1: Spends 10 hours looking at properties on days 1, 2, 3 and 4. On the 5th day, they write and sign offers, addenda, etc.
Investor #2: Spends 10 hours looking at properties on days 1 and 2 and right up until time to go to the airport on the last day. She thinks it will be easy to FAX 10 or 20 half-inch documents from her home. (Turns out she was wrong.)
Investor #1: Makes offers that have a reasonable chance of being accepted.
Investor #2: Does not. She will not believe that Kansas City Real Estate is not the same as Las Vegas, Detroit or Miami-Dade County Real Estate.
Investor #1: Opens an account with BoA so that she can run over and get a cashier's check for each offer submitted.
Investor #2: Does not. She ends up faxing incomplete documents (unable to scan and email multi-pages) and running to her bank for cashier's checks one by one in between the fax foul-up.
Investor #1: Listens when my colleague offers her opinion on each house.
Investor #2: Does not.
Investor #1: Listens when my colleague offers opinions on price and terms.
Investor #2: Does not.
Investor #1: Asks intelligent questions.
Investor #2: Wants to know why her real estate agent cannot tell her EXACTLY how much it will cost to repair a light fixture with water in it. No one can tell you that until they get into it and see how much damage there is. Is it a leak in the plumbing or the roof? Is the wiring fried? How much damage is inside the wall? Don't know until you start taking it apart.
Investor #1: Respects the Kansas City Realtor who is helping her.
Investor #2: Does not.
Now, I understand that many real estate agents choose not to work with investors at all - especially investors who buy low-end properties to be used for rentals. But, even if you normally don't work this area of real estate, which client would you choose to work with?
Maria Morton 816-560-3758-mobile
Kansas City Real Estate Agent / Realtor© licensed in KS & MO
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Maria Morton ©2011 *Real Estate Investors: Two Different Kinds*
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