Real estate investors are those people who buy houses. They can be active or passive real estate investors. Investors can purchase commercial or residential properties or a mix of both. They can apply repairs and improvements to these properties before selling them or just sell them as-is.
Passive Investors – buying and holding properties in long-term. This is to maximize return by exploiting the volatility of the real estate market.
Active Investors – continuously buying and selling real estate properties.
Mostly, their sources of these investment properties are the following:
- Real estate wholesalers and investors (flipping)
- Government entities
- Real estate agents
- Real estate brokers
- Public auction (foreclosure sales, estate sales, etc.)
- Private sales
- Market listings
- Site leads
- Social media leads
After finding an investment property lead, these investors may then process the following:
- Sale Price Negotiation
- Sale Term Negotiation
- Execution of Contract to Sell
Often times, these investors seek the help of a real estate agent and real estate attorney. Their purpose is to assist the investors with the acquisition processes due to the fact that the cost of an improperly executed transaction is high.
Typically, at the start of the negotiation, these investors will make a formal “offer to buy“. The offer usually includes the payment of “earnest money” or a security deposit to reserve the investor’s rights to complete the transaction if the price and terms can be satisfactorily negotiated. The security deposit is usually considered a signal to show the seriousness of the investor’s intent to purchase the property. Security deposit may or may not be refundable (depends on the contingencies written on the agreement).
All Cash For Homes PGH is a great example of a real estate investor. We buy houses using fast and simple process.
NOT a real estate agency
NO commissions (which can run as high as 6%)
NO charges (for any incidental fees)
NO closing costs
Contact us, we’ll present you with a free, no-obligation, cash offer for your property. You are welcome to reject or accept our offer. If you do accept it, we’ll pay you with cash and buy your property as-is. No need to make any repairs and we normally close within 30 days.