You are viewing the printer-friendly version of Are you a Tire Kicker or Deal Maker?Are you a Tire Kicker or Deal Maker?Deal makers know how to make the gap between the offered and asking price and successfully close the deals. A tire kicker looks at a lot of properties and talks a good game but doesn't know how to take decisive action.A tire kicker doesn't have much knowledge of the market or what he is looking for. A deal maker know where to invest because he has researched the market, he knows what to look for and doesn't waste time looking at properties that do not fit his criteria. A tire kicker doesn't have lender relationships or a business plan and asks the seller for 100% financing. A dealmaker has established relations and can bid on all cash price or can assume loans. A tire kicker figures he can manage property cheaper by cutting corners. A dealmaker knows exactly how he will manage and improve property and anticipates the costs. A tire kicker analyzes a property based on the most recent annual operating statement. A dealmaker will examine the trend of operations over several years and integrate information with overall market trends. A tire kicker will try to make a deal structure fit every situation. A dealmaker finds the sellers most pressing needs and structures the offer accordingly. True dealmakers are easy to spot. He knows his financial capacity in cash and credit; he has criteria for property type, market, and minimum return requirements. He uses the tools of financial measurement to quickly evaluate the property; he then formulates a game plan and deal structure that allows him to achieve his goals. A dealmaker doesn't try to get every dime of price concessions. He knows the real proof of the deal is in the ability to make the plan a reality. Years of experience doesn't automatically mean a buyer is a dealmaker and a new investor is not a guaranteed tire kicker. A dealmaker has a good grasp on his financial capacity and knows what, where, and when he wants to invest. He has a business plan and has taken time to form lender relationships. He is ready to act when the opportunity appears. aa |