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

By
Real Estate Agent with Mason Real Estate CA BRE 01444168

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.

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Until Next Time, Have a Blessed Day,

John Occhi, ePRO, REALTOR®
DRE Lic No: 01444168


ePro,John Occhi,www.johnocchi.com,realtor      Certified Probate Real Estate Specialist Logo Awarded to John OcchiFive Star Logo,Certification,REO,Five Star Institute     

Excellence in Real Estate,Team Log,John Occhi,www.johnocchi.com,hemet,san jacinto,CA  

This blog and the contents written here is the intellectual property of John Occhi, Temecula - Murrieta, CA REALTOR® in the South West Riverside County region of the Inland Empire of Southern California.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 


I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

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Comments (14)

MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Great questions, John. I especially like the one asking them to work exclusively with you, and the one asking why they AREN'T working with the last aent they closed with.

Nov 29, 2009 04:39 PM
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Michelle,

Thanks for stopping by.  Investors, in many ways are just like any other buers - they need to be qualified.

John

Nov 29, 2009 05:10 PM
Christine Hynes
American Capital Corporation - Laguna Beach, CA
Orange County Senior Loan Consultant

John,

I agree it is all about the numbers and they can be sliced so many ways depending on the investors investment startegy as they are not all the same.

Nov 30, 2009 08:27 AM
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566

I hit the reblog button rapid fire on this post...thanks for the great list of questions.

Nov 30, 2009 09:39 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

John, This is an excellent way to profile your clients.

Nov 30, 2009 09:56 AM
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Christine,

And thats good, just imagine how boring it would be if all were the same...

John

 

Nov 30, 2009 10:17 AM
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Cheryl,

Perhaps it will turn GOLDEN for you...thanks

John

Nov 30, 2009 10:18 AM
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Steve,

Thanks, I appreciate you input.  You'll find that most people enjoy talking about themselves - so they answer wtih no problem.

John

 

Nov 30, 2009 10:19 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

John , thank you for the list. I will bookmark it and add several questions into my three Investment Classes(Client Counseling Session). But suffering from "speaker's disease", I 'll probably only give you credit for it(by name) once !

Dec 11, 2009 01:23 AM
Jeremy Butts
Real Estate Entrepreneur - Louisville, KY
Investor

Very thorough questionaire and quality tool for realtors. A realtor using this is demonstrating that they are in tune with the specific needs of investors. Best regards, Jeremy

Feb 23, 2010 03:10 AM
Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Thank you for the list John. I have had many Investors call me. These are questions that I am going to be asking investors who want to work with me. Great post.

Jun 01, 2011 08:33 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

So true so many agents do not ask enough question.  Then some do not listen to the answers.

Jun 01, 2011 07:16 PM
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Great questions. Real clients are willing to answer them truthfully.

Jun 01, 2011 09:14 PM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

John,

I followed your post back from Lanre's reblog.  Even though you wrote this post sometime ago ( and I commented then) it is still timely.

Blessings,

Steve

Jun 02, 2011 03:25 AM

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