{"id":3104,"date":"2008-05-12T09:28:03","date_gmt":"2008-05-12T16:28:03","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3104"},"modified":"2008-05-12T09:28:03","modified_gmt":"2008-05-12T16:28:03","slug":"how-a-realtor-can-work-with-a-real-estate-investor","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3104\/how-a-realtor-can-work-with-a-real-estate-investor\/","title":{"rendered":"How A Realtor Can Work With A Real Estate Investor"},"content":{"rendered":"

\"Real<\/h1>\n

It\u2019s no secret to most Realtors that the housing market is in the toilet right now, but there is still a group of aggressive buyers who are still quite active. The Real Estate Investor. <\/p>\n

While the mere thought of working with investors causes some Realtors to cringe, it\u2019s time for the vinegar and oil relationship to end.<\/p>\n

Investors are willing to work with anyone that can bring them a deal. They use birddogs, postal workers, bankruptcy attorneys, court clerks and yes, they will use the services of a Realtor.<\/p>\n

However, the breakdown in communication usually comes when the parameters of a real estate investor are not met. A real estate investor, if they are experienced, will have a very defined set of criteria that must be met if they are going to pull the trigger on a deal.<\/p>\n

While condition and neighborhood often are irrelevant, the numbers have to absolutely make sense. Most investors that we work with will not look at any deal unless it either cash flows if it is held or provides for significant return if it is to be re-sold.<\/p>\n

Cashflow means the property must provide for at minimum a zero balance after income and expenses are taken into account. That is to say that after the projected rental amount on the property, less expenses can not be a negative number.<\/p>\n

Here is a calculator <\/a>that you can use to determine cash flow BEFORE<\/strong> presenting a deal to an investor. You can obtain market rents very easily without the need of the MLS by simply going to Zilpy<\/a>. The features on Zilpy are pretty accurate and we have used them to work the numbers on properties we own and properties we have purchased and it has proven to be quite accurate.<\/p>\n

On a re-sale deal, the property has to be purchased at a price that is at minimum 60% or below<\/strong>what is perceived to be current market value. Some more aggressive investors will take a deal at 70% below perceived current market value but the pool gets really thin at LTV levels above this number.<\/p>\n

Where do you find properties like this to sell Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s no secret to most Realtors that the housing market is in the toilet right now, but there is still a group of aggressive buyers who are still quite active. The Real Estate Investor. While the mere thought of working with investors causes some Realtors to cringe, it\u2019s time for the vinegar and oil relationship […]<\/p>\n","protected":false},"author":37,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-3104","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1593,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1593\/new-homes-sales-market-slowdowns-and-investor-irrationality-looks-like-its-time-to-face-a-correction\/","url_meta":{"origin":3104,"position":0},"title":"New Homes Sales, Market Slowdowns, and Investor Irrationality: Looks like its Time to Face a Correction","author":"Cooksquared","date":"June 28, 2007","format":false,"excerpt":"Tanking new homes sells should have real estate flippers and small investors worried. 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We became a sort of hybrid group-blog when we added mega-producing Phoenix-area Realtor Russell Shaw. 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