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What Investors Look For in Deals
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Every investor is an individual with different interests and needs. Therefore, what investors look for in deals covers the general needs as opposed to specific needs that every other investor has, in addition to the common needs. If you are in the business of connecting investors looking for deals with the home owners and sellers, then it is always good to network and find out before hand who from the list of buyers would most want to purchase the property you are dealing with. If you can identify one or more buyers who would be interested in the property, then you can go in with greater confidence to clinch a deal with the owner, secure in the knowledge that you already have some potential investors lined up. Leaving aside the special needs, most investors want to purchase property as far below its current market value as possible, because they want to see a quick profit if they sell it within a short period.
There are various formulas to work out the maximum discount a property can be sold at, one of which goes on the basis of 70 % of the value of the property after repairs, minus the estimated cost of the repairs themselves. Another formula used in some markets says the value to be paid for a property is a maximum of 6 to 8 times the total rental amount that can be realised from that property within the first year. Whatever be the formula used, investors will always look for the maximum discount that the owner will accept.
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Article Submitted On: November 02, 2009
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MLA Style Citation:
Jenkins, Chris B. "What Investors Look For in Deals." What Investors Look For in Deals. 2 Nov. 2009 EzineArticles.com. 24 Nov. 2009 <http://ezinearticles.com/?What-Investors-Look-For-in-Deals&id=3196092>.
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APA Style Citation:
Jenkins, C. B. (2009, November 2). What Investors Look For in Deals. Retrieved November 24, 2009, from http://ezinearticles.com/?What-Investors-Look-For-in-Deals&id=3196092
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Chicago Style Citation:
Jenkins, Chris B. "What Investors Look For in Deals." What Investors Look For in Deals EzineArticles.com. http://ezinearticles.com/?What-Investors-Look-For-in-Deals&id=3196092