There are all sorts of investors out there.
Many think they are investors, but really have no idea what they are doing.
Others make consistently low offers on multiple properties a day until one of them sticks. It is a numbers game for them.
I usually have to deal with investor buyers on my short sale listings.
I had a short sale in Miami Shores listed at $299,000. I had countless emails from investors in the low $200s as soon as I listed it.
Our first contract was an owner/investor at $290,000 cash. Yet when the property needed some work he wanted to drop it to $200,000. The bank obviously rejected that.
The bank said they would come down to $270,000, but the buyer said he would only go up to $220,000. So the deal was cancelled.
As soon as I had it back on the market the investors were emailing and calling again. I explained that the bank would take $270,000 now. Yet they still wanted to offer $200,000. I explained the bank already rejected $220,000 why would they take $200,000?
The investors still want you to take their offer.
But, there are many good investors out there. We ended up getting a cash investor who paid $260,000 on the property and it closed.
After I closed the property out on the MLS, I got an investor sending the same email he was sending me every two weeks asking about his offer on the property. I simply responded that it closed.
When I meet with my sellers, I tell them to shy away from investors if they can and go for buyers that want to live in the home. Those buyers will be more emotionally attached to the property and be better to negotiate with.
On the other hand, most investors will try and knock off everything than can off the price which usually makes the deal fall apart.
A good investor will know the true value of a property and give a reasonable offer.