Buyer Profile (IC) Flashcards
1
Q
Investment Objectives
A
What are your primary investment objectives?
- Are you seeking stable cash flow from your investments?
- Are you more interested in value-add opportunities to increase property value over time?
- Is long-term appreciation a key priority for you?
2
Q
Preferred Property Characteristics
A
Are there specific locations you are targeting?
What attracts you to this particular location?
What is your ideal number of units for a property?
Do you prefer a specific property class (A, B, C, or D)?
What type of tenant profile are you most comfortable with or interested in?
3
Q
Budget Range
A
- What is your budget range for real estate investments?
- Are there any specific financial constraints or flexibility within this range?
- What is your source of capital?
- Is it primarily self-funded, or are you working with partners or investors?
- Do you utilize debt financing, or do you prefer cash transactions?
4
Q
Financing
A
- What is your preferred financing approach?
- Do you typically invest using all-cash, leveraging, or a combination of both?
- When leveraging, does your loan-to-value (LTV) target vary depending on the property, or do you typically work within a specific range?
- Do you have a specific percentage target in mind?
- Would you say your preference is for:
o Below 50%?
o 50% - 75%?
o Above 75%?
5
Q
Timeline
A
- Would you be ready to move forward with a purchase immediately, or would you need a certain amount of time to get things in place?
- How flexible are you with your closing dates?
- Are there specific timelines you prefer to adhere to?
- Are there any constraints in your real estate transactions that typically arise and can be forecasted in advance?
- For example, financing approvals, partner agreements, or other contingencies?
- If negotiations or due diligence reveal issues, are you generally willing to extend the timeline to accommodate these challenges, or do you prefer to move on quickly?
- Could you share an example of how you’ve handled similar situations in the past?
6
Q
Decision-Making Process
A
- Can you describe your decision-making process for real estate investments?
- What are the key factors or criteria that guide your decisions?
- How do you typically evaluate opportunities before committing?
- Who is the key decision-maker involved in the process?
- Are decisions made individually, or do you rely on input from partners, advisors, or a team?
- Is there a particular approval or review process that needs to take place?
7
Q
Return Expectations
A
- What are your expected returns for your investments?
- Are there specific metrics you focus on, such as cap rate, cash-on-cash return, or internal rate of return (IRR)?
- Do you typically have a target cap rate range you aim for?
- What is your ideal range based on the market or asset class?
- Is there a specific cash-on-cash return you require for your investments?
- Does this vary based on property type or location?
- Do you target a specific internal rate of return (IRR) over a given investment horizon?
- Are there any other return metrics you consider essential for evaluating a property?
- What other financial or operational metrics are critical for a property to fit your investment criteria or “buy box”?
8
Q
Due Diligence
A
- What are your typical due diligence requirements for a multifamily property acquisition?
- Are there specific documents or reports you prioritize during the process, such as rent rolls, operating statements, or title reports?
- Do you typically conduct physical inspections of all units, or focus on a sample?
- How in-depth is your review of tenant profiles and lease agreements?
- Do you have a standard due diligence timeline you prefer to follow?
- Are there any particular steps that you find take longer or require special attention?
- Do you engage third-party professionals for certain parts of due diligence, such as environmental assessments, property inspections, or legal review?
- Are there any deal-breakers that would immediately disqualify a property during due diligence?
- For example, certain financial inconsistencies or physical condition issues?
9
Q
Management
A
- Do you intend to manage the property yourself, or will you be working with a property management company?
- If self-managing:
o Do you have prior experience managing multifamily properties?
o What systems or tools do you use to streamline management?
- If using a property management company:
o Do you already have a preferred company you work with?
o What are the key qualities or services you look for in a property management partner?
- How involved do you plan to be in the day-to-day management of the property?
- Do you prefer to oversee operations closely, or take a more hands-off approach?
10
Q
Exit Strategy
A
- What is your typical hold period for an investment?
- Do you have a standard timeframe, or does it depend on specific market conditions or property performance?
- What is your preferred exit strategy for your investments?
- Are you more inclined to cash out upon reaching your financial goals?
- Do you prefer to reinvest proceeds through a 1031 Exchange to defer taxes?
- Do you ever consider other exit strategies, such as refinancing or selling partial interests in the property?
- What factors typically influence your decision on the exit strategy?
11
Q
Communication Preference
A
- How do you prefer to be contacted with potential investment opportunities?
- Is email your preferred method for receiving detailed information?
- Do you prefer a text message for quick updates or reminders?
- Would you rather discuss opportunities over a phone call for more in-depth conversations?
- Are there specific times or days that are best for reaching out to you?
- Do you have a preferred format or level of detail for investment opportunities, such as a summary or a full analysis?
Okay, well thank you [FIRST_NAME] for your time today, I will be on the look-out for a property that could fit your buy box, and I will reach out to you when I do. I hope you have a fantastic day, and I’ll be in touch!
