California Investment Property: Four Different Types of Buyers
In business, to get ahead, you need to innovate and be constantly abreast with the latest strategies. This also holds true in the real estate industry especially if you want to sell a California investment property. The selling strategies that worked before no longer bring in the big bucks. In the past you need to buy a property first then look for property buyers later. The latest strategy that works nowadays is to look for buyers first before you purchase any property. There are four classifications or types of buyers. They are:
1. Landlords These are the people whose business is to rent out their properties. They purchase houses or properties at a lower price and profit through rentals. All they need to do is have a property renovated, such as a California investment property, and make it livable. There are people not eligible to apply for financing and the only solution for them to have a roof over their heads is to find a house that they can rent. To find landlords, you need to network with landlords, leasing agents, or property management companies. To motivate them to give you the information you need, you can offer a referral fee. You can also get directly in touch with landlords who may be your possible prospects through information given in “For Rent” postings. Contact them and ask if they would be interested to have more properties to rent out.
2. Renovators Renovators spend more in property repairs and renovation. Their purpose is to get the property in top condition to the point that it appears as though it is new. There may not be a lot of them around unlike a couple of years ago, but they are still good property buyer prospects. Renovators usually place ads for the properties that they are selling or employ the services of real estate agents. They will usually place words such as “Newly Renovated” or “Like New” in their ads. A good place to find them is to check out online ad placement sites such as www.Craigslist.org.
3. Retail or End Buyers Unlike the two types of buyers mentioned earlier, retail or end buyers purchase a property for them to live in. They usually pay more for the property than the landlords and renovators. When looking for retail or end buyers, remember to seek those who are not just willing but also able to purchase the property at the agreed amount. This means that they are already scouting for a property to purchase and may already have the money on hand or are already in the process of applying for mortgage loans. Bankers, real estate agents or mortgage brokers are good sources of information on how to find this particular buyer type.
4. Tenant/buyers Among the four types of buyers, tenant/buyers are the ones who are going to purchase the property at the highest price. The difference is that they are also the ones who will give the lowest downpayments (around 1% to 5% of the sale price). Although retail or end buyers and tenant/buyers both consider affordable monthly mortgages as a deciding factor, what sets them apart is that the latter will be renting the property from you for a certain period and given an option to purchase it in the future. Knowing these strategies alone will make selling your California investment property a breeze.
Originally published here.
Hayden Ross is an article marketing assistant of Trace Trajano for BuyFirstDeal.com. Discover the secrets on how to acquire a California investment property . Visit us and network with other real estate investors at http://BuyFirstDeal.com to learn cutting-edge tips and strategies to help you thrive as a real estate entrepreneur.