What Type of Investor Am I?
Every week I see properties land on the market that could work for the right investor. Not all investors are created equally just like not all deals are created equally. I’m going to list the types of investors so that you can identify yourself, and please let me know at: david@adaptiverealty.com
1. Cash-heavy, ready to renovate.
This investor has between $600K-$3M ready to invest in a property that needs work. We buy an undervalued property, you buy out the tenants, and renovate it to appeal to top renters. This investor should expect at least 8% yearly return on his money.
2. Cash-heavy, hands off.
Not everyone wants to get their hands dirty and make a renovation project their part-time job. But if you have cash — between $800k-$3M — you can still get a decent deal by making a strong cash offer. This investor can likely expect 6-7% on his cash in today’s market.
3. Cash-medium, some improvements.
This investor has $300k-$600k cash. You want to be proactive, but you’ll have to pick your deals carefully. You may not buy out all the tenants, or you may consider purchasing a property that is mostly vacant. You can’t do a complete renovation, but you’ll add hardwood floors, update the appliances, and take over for a lazier landlord. You can expect 7-8% on your money if you seize the right opportunity.
4. Cash-medium, hands off.
This investor is looking for a long-term investment. You want a property that will cash flow now, but you’re more interested in the appreciation and equity building in your property. You can expect 3-5% cash return now, but it’s more about the value in 5-10 years.
5. Cash-poor, you better be hands on.
If you have between $35K and $250K, you can go for long-term or short-term investments, but you’ll have to get involved. Whether you live on your property or you’re fixing it up to livable condition, you’ll want to be proactive in protecting your investment.
Please let me know which type of investor you are so I can send you the right deals for you. And if you don’t fit any of these descriptions, please let me know that, as well.