Well, it’s not that strict. When I say a formula, I am more talking about the information that you need to get across to the investor. But I have found this specific template successful in the past.
You’ve found motivated sellers. Now all you must do is find buyers. But you aren’t just looking for any buyer; you’re looking for cash investors. This is where your fee comes in. You are paid a finder’s fee by the buyer to find the deal.
Fortunately, we have found someone through our local real estate investment club that knows who we are and knows we are a very good financial risk. He is willing to finance this home for us so we can record a loan and get some “traditional seasoning” on a mortgage. The “signing party” will be the standard mortgage and promissory note – checks transferred. Mortgage filed in the city-county building, then it is off to lunch. Then more searching for the next housing deal. But, with some big lessons learned.
Market is variable. The price of two real estate properties can vary a great deal, provided you keep other factors such as time and location, constant. No two real estate properties can have exact. There always exists kind of variation and this need to be considered. Though, you do have the existing rule of thumbs and set strategies, but all these are workable, if tried in combination. Individually, they become worthless math.