Different types of investment buyers

Cash property buyer:-

Investors who commonly purchase properties under or below market value (UMV or BMV). These people generally have funds readily available to purchase without any delays. They are looking to get a good return on their money.

Buy to let investor (BTL): -

Most investors would come under this category but a common type buy-to-let investor is someone who is arranging a mortgage to buy a property to rent out. The buy-to-let investor would have to arrange a buy-to-let mortgage meaning that they use to have to put down a larger deposit than a normal buyer generally a 15% deposit. Due to the credit crunch, buy-to-let mortgages are harder to obtain and investors now have to generally put down a 25% deposit to purchase a property, meaning that the investor will be looking to purchase properties at a lower price.

Developer: -

This type of investor will be solely looking for properties with potential to refurbish and resell or properties that have potential to develop i.e. build a house to the side, extend, convert into flats, land to build large amounts of properties to re-sell, etc, etc.

NOTE: In a high percentage of cases once the price has been agreed you may find that when you are close to exchanging contracts, investors may try to re-negotiate the price. They will normally complete on the transaction, but after they have tried to get some extra money off.

Also see:

Cash property buyers
Property buyer types
Quick Property Sale

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