I’ve always tried to follow the mantra of never saying, writing, or posting something while angry, but sometimes I have to strike while the emotional iron is hot. I’ll try to be as neutral as possible.
Real estate investors are everywhere. From high rollers with huge staffs, multiple buyers agents and 9-figure portfolios to some clown who attended a Rich Dad, Poor Dad seminar and is barely able to fill his car with gas, they are everywhere. And when a house comes on the market, they come a-knocking. The best opinion I can give:
The Good – Investors typically bring cash, and some have access to lots of it. Their plan is all about dollars-and-cents, and rarely do they become emotional. They may overlook issues that would drive off normal buyers, can quick-close, and, as long as the margins work, can often be the highest bidder. When a buyer offer works, it’s usually among the smoothest contracts ever.
The Bad – A lack of emotion can also be a weakness. Investors rarely “fall in love” with houses; it’s all numbers. Their agents are often high-volume bidders who submit a dozen offers a day, and communication can be limited.
The Ugly – Anyone can call themself an investor, it doesn’t mean they know what they’re doing, actually have access to capital, or have any regard for others. I’ve had investors who promise they’re going to rehab a property only to scrape it and investors who lock a property under contract only to use the option period to try to find another investor to bundle and sell it to, and when it doesn’t work out they walk. The larger ones submit 10-50 offers a day and may not have even toured the property.
Investors are a blessing and a curse, take their offers with a grain of salt.