The Investor Value Proposition

The Investor Value Proposition

The top priority of an investor savvy real estate agent is to understand their client's needs as an investor, not just another home buyer. Finding properties for investment purchases, rather than personal homesteads requires a different approach and an entirely different set of rules. Where a typical homebuyer might look at flooring, fixtures, back yard and garage - an average investor concerns themselves more with efficient purchase options, vacancy and rental rates, repair estimates, and neighborhood trends.

Approaches will also vary depending on whether an investor is looking to flip (buy-fixup-sell) or hold (buy-fix up-lease) their real estate assets, but one common denominator is that investors are always on the lookout for their next great buy. That's why we always follow our systems to make sure investors aren't surprised once they've purchased their properties:

Our Investor System

The Investor Cycle

1. Needs Analysis

During our initial consultation, we help you discover the requirements that each potential property must meet, the purpose for this investment (flip or hold), and discuss possible options for funding the purchase. During this phase, we estimate best and worst case income scenarios to develop a clear picture of your ideal investment purchase. In strong sellers markets, we can't underestimate how important this step becomes.

2. Home Search

We'll help you identify a list of neighborhoods to target based on your gameplan, and deliver the pertinent information you need to make an objective decision. Neighborhood trends, vacancy and rental rates, sales and leasing timelines and area demographics all can heavily influence the ultimate success or failure of an investment project. We'll then coordinate showings (and handle them for you) and provide ongoing updated about the properties you're most interested in.

3. Evaluate Cash Flow / ROI

Each property that meets with initial approval will be evaluated as an investment vehicle. We'll estimate cash flow for rental properties, and cash on cash return for flip properties. We can estimate repair costs based on Fannie Mae's Property Preservation Matrix or based on figures provided by your own contractors. You'll receive an evaluation for each property you're interested in.

4. Making Offers

We'll help you compare homes that make your short list and make decisions about which home to you ultimately want to make an offer on. We advise you on the terms and conditions of offers and the costs associated with certain decisions. Finally we complete your purchase offer contract and deliver it to you for signatures. We've also worked with investors who opt to allow us to make offers on their behalf.

5. Negotiating Terms

We present your offer to listing agents and verbally frame your offer in the best possible light to give it the best chance of being accepted. If homeowners counter your offer, we advise and negotiate terms on your behalf until a win-win situation can be obtained.

6. Vendor Coordination

After an offer is accepted and you're in contract, we'll still need the assistance of third party vendors to close most deals. Inspectors, appraisers, surveyors and title companies come into play. We'll advise you on quality vendors to perform work.

7. Pre-Closing

We'll coordinate and supervise document delivery and preparation as well as review any disclosures, amendments, title policies and settlement statements with you so you know what to expect both before, during, and after your closing. Pre-closing consultations equal smooth sailing on closing day.

8. Closing & Funding

Prior to closing, we'll review the settlement statement with you and resolve any last minute issues that might arise. Delays at closing are almost always related to the buyer's loan so we stay in constant contact with your lender (if applicable) leading up to closing and completion of your purchase.

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