questions for buyers

Aaron-n-Suzy,

That’s exciting! Congratulations on getting your 1st of many responses.
Though the goal is to get as much information from you potential buyer as possible, here are the 5 I tell my students they need to have before they can start looking for property.
1- What location/area are they looking to invest in?
2- What is the amount they are looking to spend?
3- What type of property are they looking to invest in? IE. SFR, condos, apt, etc.
4- How much are they willing to spend in rehab?
5- How quickly can they close?
Again, there’s a lot more information you can get, but if you get these 5 things, you will be able to start narrowing down the inventory.
Good luck!

Clarsen said it perfectly, and gave you a great list of questions. I do feel as though the list of 5 questions they gave are the top priority, but here are just a few more that you might want to get answered if you can:

1) Does it matter to you if the property shows up on the MLS? (some buyers I've come across only want to deal with unlisted properties)

2) Does it matter what year the property was built? (some only want properties after 1978 due to potential lead paint issues)

3) What are your minimum bedrooms and baths that you are looking for? (some investors only want 3/2's or better)

Also, consider having these questions on a piece of paper in front of you to take notes when you talk to them to make sure you get the info you need. And, this helps so you can focus on just having a conversation with them, and not worrying about if you missed something or not.

Hope this helps,

Thank you very much I will use these questions on my next call to potential buyers.

Aaron-n-Suzy

Thanks Stephan,appreciate the additional information.

Aaron-n-Suzy

My goodness! This is great stuff!

how many properties they are looking to acquire this year. This tells you how many they can buy for the year.

Good advice I am going to put it to good use on my next conversations with potential buyers.

Appreciate you sharing your knowledge with us....Am always seeking more:)
Aaron-n-Suzy

I have what I call a buyer profile sheet and Im sure dean has one on here. You want to get as many as these profiles as you can. Its pretty much a order form.. contact info, what are they're looking to buy (in detail). Shoot me an email I'll send you one.

Thanks Mike,having a list of question sitting in front of us makes sure we ask the right questions and the same question for all buyers.

Aaron-n-suzy

Contacted 5 buyers with questions in hand.
3 are doing wholesaling 1 buy/rehab/sell and 1 well he was just an ass and that ended fast. So we have 1 good buyer on our list so far and we think that's a good start, the wholesalers we will keep on back burner and will try networking with them later.

It helps to have a list of what you are going to ask right in front of you so you ask the same questions over and over again, it helps with your confidents also.

On to the next call.

Aaron-n-Suzy

Thanks, everyone! The answers given were extremely helpful -- especially to this birddog/wholesaler-wannabe! I know now where to find good info!

These are all great replies you've gotten. Here are the five simple questions I ask all buyer's.

1. What area do you invest in?
1A. Are you willing to go outside those area's?
2. What price range do you buy in?
3. What are the specifics on the properties you want (ex. Bedrooms, bathroom, ect…..)
4. Are you a cash buyer? If yes, then how quickly do you normally close?
5. What is the discount off of Fair Market Value/After Repair Value do you want or is there a specific profit margin you need to make on each deal?

Hope this helps, good luck.

Shah Ali

We have our list of questions that we ask but its always good to keep adding more good questions to it.
We thank everyone for there thoughts on this, we hope this thread helps others also.

Dont just learn but have fun doing it.

Aaron-n-Suzy

Although it is not really a question, I have found that it generally helps for me to ask an investor to share with me an example of a property they have worked with recently that has been very successful for them. I make notes, and then say: "If we use this as a sort of model property, and do our best to match that property, would this be the kind of deal that you would say yes to every single time?"
I want to get my cash buyers in the habit of saying yes, and letting them know that I only want to bring them properties that they will say yes to every single time. By couching my inquiries in this kind of languaging, I am setting an expectation that they are more likely to follow through with.
Also, when I call them back with a property under contract, I let them know that I am looking at their list of criteria and this property is a "solid match and a screaming deal." I am reminding them that I know what they told me they would say yes to, which creates a memory and a kind of embarrassment if they do not say yes. I also let them know that I have other people that are interested in the property, and that it will be gone, by, like, TOMORROW. This creates a legitimate urgency that they respond to.
I am very interested in using the psychological factors that create the results I am looking for, and also in taking control of as many aspects of the business as I am able. Beyond that, the three most important words that you can write down and always remember are: "Negotiation Never Ends." Just when you think you have everything worked out, something will come up that requires additional negotiation. Once you realize and accept this fact, you are prepared, and even excited to get the next thing negotiated, the next agreement made, and the next step to your success accomplished.

Im going to wright this down now! I think if I add this to everyone I call(buyers,sellers,agent,contractor or handyman,cpa,banker est ) I would get a much better response,of coarse wording it to fit each.
This is a great negotiating tool,I think we all should wright this down.

Thank you coach for sharing this with us.

Aaron-n-Suzy

The wholesalers are also good as potential partners with whom you could split deals (co-wholesale). If you have a deal and no buyer and they have a buyer and no deal--Ka-Ching!

Karen

That makes perfect sense.
We were overlooking other wholesalers thinking they couldn't close fast enough,that was wrong thinking putting them on back burner.
Going to recall those 3 back..
Thank you Karen for sharing this.

Aaron-n-Suzy

I like the idea of partnering with other wholesalers. I'm headed to another R.E. investors meeting tomorrow and plan to make some more connections. I know some of the members partner up and I'm not sure how to go about that, but would like to learn.

Networking is always a good idea from REI clubs or who you come in contact from sites like CL.They can be partners and mentors as well.
When your at the meeting sit in the back and listen,you can learn a lot and the cash buyers will make themselves known,talk to them give them your card or just say hi im Debbie and I run across deals all the time,maybe I will have something your looking for.Get there info.
Just keep doing that and you will gain confidence that you dont have now and it will get easier.

Wish you the best

Aaron-n-Suzy

am bookmarking this, sooo much good info, thanks coaches and savvy REInvestors for your contribution and input. I am going to create that urgency in my buyers now and get that buyers question list too

Are they looking to buy to flip or to hold? If holding, what ROI are they looking for?

http://www.deangraziosi.com/real-estate-forums/everything-else/96548/inv...

ALWAYS use forms

http://www.deangraziosi.com/real-estate-forums/everything-else/113129/de...

I learned from my first mentor in real estate investing that if we really want to be successful, we should have a "What's In It For Them" mentality. While all of the questions that we ask are geared to how we can be of help to them, I would like to propose the addition of one more question that goes over the top in being service minded, as long as you really mean it. Once you have established a rapport with them, try asking this question in this way:

"You know, Mr/Ms Real Estate Investor, we would sincerely like to be of service to you. If there was one obstacle preventing your business from being everything that you would like, what would that obstacle be? Maybe we can assist with that."

They may not have a response for you immediately, or the answer that they give you may require some additional probing to really understand their pain, but I guarantee, they have never been approached by anyone with this kind of question, and you may be able to help find a solution to something they have been struggling with for years. That would be incredibly satisfying and rewarding, and these people would be eternally grateful to you. Now THAT's how you create a place for yourself in this industry that is indispensable.

When we started this thread we didnt have any buyers on our list at all.
Now we have two good ones and we have been trying to network with wholesalers in our area, "thanks Karen".
Everyone has been giving great advice,thank you.

Coach,you keep bringing good stuff!

They keep saying NO but that one YES is 25-1_________________________

Aaron-n-Suzy

Like they say, "If it was easy, everybody would be doing it!"

This is an extremely frustrating business. It is simple but not easy. I am not being negative (you know my attitude on that) but I AM being realistic. I have been told by other DGers that I am very helpful but if you don't want to know the truth, ask someone besides me!

By being active on this site and not just a "stalker" you will benefit HUGELY!!! It has saved MANY of us from quitting when we feel that we are beating our heads against the wall. It will happen. That is one of the tests from the Universe to see if this REALLY is what we want.

Dean has given us a tremendous gift in giving us this site. The networking and the really true friendships that can be developed here will become your lifeline and will bring great joy. But you HAVE to reach out and accept that gift and use it to help you.

You guys are doing that. I think you are awesome and know that if you continue in this way, you will succeed!

God bless and go out and make your luck!

Karen

Oh and you're welcome!

As you say not to be negative,but it just real life-reality,first you have to decide if this RE Business is what you really want to do,then go into it very open minded,and very enthusiastic,because this is really a numbers game,you have to just keep filling your pipe line,something like the 25 to 1 scenario,and i just want to say Thanks to Dean Graziosi for making this Site,and making it possible for all of us, Happy Thanksgiving Karen & The DG family

I have found this business to be more interesting than frustrating. It works best when you are not emotionally dependent upon the outcome of any particular offer or deal. That dependency can be a killer, and will actually drive deals away.
I find most of my involvement with real estate investing to be pleasant, and exhilarating. When I have to do something unpleasant (which would happen in any business) I visualize myself putting on another hat, and being the manager over that particular task. This helps me in evictions, and other unpleasant things like that.
After completing the task, I visualize taking off that hat and putting on a different one, and moving on to do something much more pleasant.
Also, when making an offer, I always make sure that I have other properties that I am simultaneously researching to make offers. If I get a rejection on an offer, I do not want my whole real estate world to collapse, so by having other properties on the horizon, I simply move my attention to the next properties and I never end up feeling all that disappointed by the results of one offer. Plus, whenever an offer is rejected, I place a teaser in my calendar to check back on that property in two weeks. If the property is still available, I will resubmit an offer. Resubmits have increased my closing ratio by more than 25%, and I would recommend that process to everyone in the program.
Some of your cash buyers will turn out to be a disappointment to you as well, so I always look at my business as two databases that are constantly in creation/expansion. I need a list of properties and a list of people who want these properties, and I am always adding to both lists. When I get a match, I get paid.

I like the idea of putting on different hats, especially for the 'unpleasant' things and people that we have to deal with in this business. As a buyer and landlord myself, I have encountered wonderful people in rei, but I have also had the misfortune to deal with issues from tenants, handymen, and other investors that I did not enjoy.

I understand and have heard about your misfortune with your deal that went south,I feel bad for you but I believe you will make the best of it and move on.
Its a good point Val "if I can call you that",that you cant count on just one buyer.You have to do your do diligence on both buyers and sellers.

Coach,I think we all should give this a good look. We all should be getting more deals in the pipeline but dont get bogged down with just one or two,we have other deals that need our full attention as well but keep putting offers in.
Now having two lists of buyers,I understand that some buy more than others per year and wholesalers we can network with and dont forget the LO folks that we can sandwich with.Do you mean put them on back burner and every deal send them email but dont count on it?

Hope ALL had a very good thanksgiving.
Aaron-n-Suzy