Clue #1: Dealmakers are KNOWLEDGABLE. They know their market, knows his financial wherewithal in cash and credit, they know their criteria for an investment property, they know how to reduce the gap between the offered price and asking price, they know how to close deals-but most importantly: In essence, they know how to make a decision when the opportunity arises.
Clue #2: Dealmakers use the tools of financial analysis to quickly size up a property's potential. They know what to look for in financial statements and they retain sound counsel regarding the legal and financial decisions.
Clue #3: Dealmakers make a constant commitment to understanding their market and refining their criteria for acquisition. You can tell by the questions they ask. They are prepared. They are thorough. They have researched the market, know what to look for, and don't waste time looking at properties don't not fit their profile.
Clue #4: Dealmakers have financing already in place. They have bank references and track record that indicates they can perform. They maintain established lending relationships, can bid an all-cash price, or can assume existing loans depending on the unique requirements of each deal.
Clue #5: Dealmakers know how they will manage and improve a property for profitability and increased equity. During their due diligence, one of their major focuses is on anticipated costs so they can factor them into their plans.
Clue #6: A dealmaker knows it is vitally important to examine a property's trend of operations over several years, rather than looking at just the current financial statements. This affords them a longer term perspective, once the anomalies have been filtered out.
Clue #7: When determining the valuation on the operations, the dealmaker will use a average, forward-looking projection that reflects his own operation of the property and the effects of his own improvement plan (rather than use the owner's stated the valuation on the operations).
Clue #8: A dealmaker is FLEXIBLE. A dealmaker knows success is about fulfilling the seller's most pressing needs. They sincerely attempt to structure an offer to meet the seller's needs, rather than attempt to make the one deal structure they are comfortable with fit every situation. In short, they want, have and use the options available to them.
Clue #9: Dealmakers NEVER try negotiate every last penny because they know real profitability and increased equity will come from their own efforts to improve the property.
Clue #10: Dealmakers want to develop a sound strategy and business plan for each property they acquire. Then they follow through on their plan.
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