Following is an article dated 07/21/10 by the North Carolina Association of Realtors: Meet the Cash Buyers: How the Fix-and-Flip Investor Thinks
A significant share of cash buyers are investors, people who are buying properties not to live in but to rent out or to fix up and sell quickly. From January through May, between 14 and 19 percent of all buyers were investors, according to figures kept by the National Association of Realtors.
Investors tend to be less emotionally invested in the homes they are buying than people who are buying homes they are going to live in, according to real estate professionals Inman News contacted. As such, these cash buyers are particularly attractive to some real estate agents.
“Cash buyers are usually investors who are more concerned with acquiring the property and not ‘falling in love’ with the home like primary residence buyers,” said Amy Wagner, a broker associate for the Walters Team at Candlewood Realty Group in the Denver metro area.
“Because of this, cash buyers usually do not spend as much time looking; the less houses I have to show to one particular buyer, the better for me. (It) cuts down my work time and expenses and frees me up to work with more clients.”
Investors tend to know exactly what kind of house they want to buy, where, and how much they are willing to spend.
“The investors are easy. They know what ZIP codes they want and what price they are willing to pay based on the condition of the home and what it will cost to rehab to flip,” said Michele Guss, a Thompson’s Realty agent based in the Phoenix metro area.
Transactions involving cash buyers can also be easier and faster because they don’t require loan approvals and appraisals.
According to one Northern Colorado multiple listing service, Information and Real Estate Services (IRES), cash buyers made up 15 percent of transactions in the region between Jan. 1 and June 15. At the same time, figures nationwide hovered at about 26 percent, according to the National Association of Realtors.
Are you working with a Realtor? Is a Realtor working with you? We investors can create the income they need! Find a reputable Realtor who is willing to work with investors and tell them your parameters. There is no better time than right now to buy properties.
