08/06/2025
What's your thoughts on real estate investors? The term can stir up some strong feelings. I've heard it all over the years, "sharks, vultures, predators. Believing they only succeed by taking advantage of homeowners.
I know there are some bad apples out there that do prey on people that don't know any better but I don't believe that is the the majority. A lot of investors are mom and pop middle class Americans. Trying there hand at the fix and flip t.v shows. While yes there are some giants out there, most are small to mid sized companies trying to flip their way to wealth. Making on average $20k-$40k per property.
Consider this: nationwide, about 30% of all home purchases are made with cash. A significant portion of these are distressed properties that a regular buyer couldn't get a mortgage for. I truly believe without investors stepping in, these houses would likely sit empty, becoming neighborhood eyesores and dragging down property values for everyone. Who else is going to buy and fix that abandoned house on the corner? You know the one I'm talking about. You think the government is going to step in and do it?
Instead of villains, I see investors as crucial partners in our community. They take on the risky projects, pour money back into our neighborhoods, and turn blighted properties into beautiful homes with great risk of loss. Investing hundreds of thousands of dollars to turn a profit.
Here are a couple tips on how to work with and investor in a win win scenario.
1. Have a general idea of what houses are selling for in the area.
2. Get a rough estimate of repairs needed to fix your property.
3. Contact more than one investors.
4. If you accept an offer. Get a second opinion on the contract before signing.
5. Make sure they are putting down a non refundable deposit.