Investor Types Explained

When you run an investor search in Deal Run, every result is classified into one of three types: flipper, landlord, or both. This classification is not arbitrary -- it is derived from actual transaction data in public records. Understanding what each type means, how they operate, and what they look for in a deal is essential to closing faster and at higher prices.

The investor type determines how you should pitch your deal, what information to emphasize, and what price point expectations to set. A flipper and a landlord can look at the exact same property and see two completely different opportunities with two completely different valuations.

Flippers

Flippers buy properties, renovate them, and resell them for a profit. The entire business model depends on buying below market value, adding value through renovation, and selling at or near full retail price. A typical flip cycle is 3 to 9 months from purchase to resale.

How Deal Run identifies flippers

Deal Run's search algorithm identifies flippers by looking for properties that were owned for less than 12 months before being resold. If someone buys a house in January and sells it in August, that short hold period is a strong indicator of a fix-and-flip operation. The algorithm searches for these short-hold transactions within your specified radius and lookback period.

On the map, flippers are represented by blue markers. In the list view, they have a blue "Flipper" badge on their investor card.

What flippers look for

• Below-market purchase price. Flippers need enough margin between their purchase price and the after-repair value (ARV) to cover renovation costs, holding costs, selling costs, and still make a profit. The classic formula is the 70% rule: purchase price should be no more than 70% of ARV minus repair costs. A flipper evaluating your deal will immediately calculate the spread between what you are asking and what the property will be worth after renovation.
• Properties that need work. Counterintuitively, flippers want properties in poor condition. A move-in-ready house does not need renovation, which means there is no value to add. A house that needs a new kitchen, bathrooms, flooring, paint, and roof is an opportunity to create $80,000 or more in value through a $40,000-$50,000 renovation.
• Good neighborhoods with strong retail demand. Flippers need to sell the finished product to a retail buyer (a homeowner, not another investor). That means they want properties in neighborhoods where regular homebuyers want to live -- good schools, low crime, convenient commutes, desirable amenities.
• Clear title and quick closing. Flippers operate on thin timelines. Every month they hold a property costs them in hard money interest, insurance, utilities, and property taxes. They want deals that can close quickly with no title issues, liens, or legal complications.

How to pitch to flippers

Lead with the numbers. Flippers are analytical. Open with the ARV, your asking price, and the estimated repair cost. Show the spread. If the deal works on paper, the flipper will want to see it. If the numbers do not work, no amount of salesmanship will change that.

Include photos of the property's current condition, especially the areas that need the most work. Flippers want to see what they are buying so they can estimate repair costs independently. Hiding damage or being vague about condition destroys trust immediately.

Be prepared for negotiation on price. Flippers have tight margin requirements and will push back if they believe your asking price does not leave enough room. Know your comps, know your numbers, and be ready to justify your pricing.

Landlords

Landlords buy properties and hold them for rental income. Their business model is based on monthly cash flow -- the difference between rental income and the cost of owning the property (mortgage, taxes, insurance, maintenance, management). Landlords think in terms of years and decades, not months.

How Deal Run identifies landlords

Deal Run identifies landlords by searching for absentee owners -- people who own property but do not live at the property address. Their mailing address is different from the property address, which means they own the property as an investment, not as their primary residence. The algorithm filters for properties purchased within the lookback period to focus on investors who are actively acquiring.

On the map, landlords are represented by green markers. In the list view, they have a green "Landlord" badge.

What landlords look for

• Cash flow. The rent must exceed the total cost of ownership by a comfortable margin. Landlords calculate cap rate (net operating income divided by purchase price) and cash-on-cash return (annual pre-tax cash flow divided by total cash invested). A property that rents for $1,500/month but costs $1,400/month in mortgage, taxes, insurance, and management is a terrible rental -- only $100/month in cash flow before any maintenance or vacancy.
• Tenant demand. Landlords want properties in areas with strong rental demand -- low vacancy rates, growing populations, proximity to employment centers. They pay attention to school quality, neighborhood safety, and walkability because these factors determine tenant quality and retention.
• Low maintenance. Unlike flippers, landlords prefer properties in reasonable condition because every repair eats into cash flow. A landlord would rather pay $10,000 more for a property that needs minimal work than buy a cheaper property that requires $30,000 in deferred maintenance. Major systems (roof, HVAC, plumbing, electrical) need to be functional or recently updated.
• Favorable purchase price relative to rent. The purchase price must make sense relative to the achievable rent. A common benchmark is the 1% rule: monthly rent should be at least 1% of the purchase price. A $150,000 property should rent for at least $1,500/month. This is a rough filter, not an absolute rule, but landlords use it for quick screening.

How to pitch to landlords

Lead with the rental numbers. What does comparable rent look like? What is the cap rate at your asking price? Include actual rental comps from the area, not aspirational numbers. Landlords are conservative and will verify your rent estimates independently.

Emphasize the condition of major systems. "New roof 2023, HVAC replaced 2022, updated electrical panel" are magic words for a landlord because they mean low near-term capital expenditures. Highlight any features that attract quality tenants: updated kitchen, new flooring, fenced yard, attached garage.

If the property is already tenant-occupied, mention the current lease terms, rental amount, and tenant payment history. A property with an existing tenant paying on time is worth more to a landlord than an identical vacant property because it eliminates the turnover and leasing costs.

Both (dual-strategy investors)

Some investors operate both strategies. They flip some properties and keep others as rentals, depending on the specific deal economics. An investor might flip a distressed property in a hot retail market but keep a similar property as a rental in a high-demand tenant market.

How Deal Run identifies "both" investors

When the same entity appears in both the landlord query (absentee owner) and the flipper query (short hold period), Deal Run classifies them as "Both." This means public records show that this investor has both held properties as rentals and resold properties quickly. They are versatile buyers with experience in multiple exit strategies.

On the map, dual-strategy investors are represented by purple markers. In the list view, they have a purple "Both" badge.

Why "both" investors are valuable

Dual-strategy investors are often the most sophisticated and flexible buyers in your market. Because they can evaluate a deal through both a flip lens and a rental lens, they are more likely to find a way to make a deal work. If the flip numbers are tight, they might keep it as a rental. If the rental yield is marginal, they might renovate and sell. This flexibility means they say "yes" to a wider range of deals than a pure flipper or pure landlord.

They also tend to be higher-volume buyers. An investor who both flips and holds is running a more diversified operation, which usually means they have more capital, more experience, and more capacity to absorb new deals.

Institutional buyers

Institutional buyers are companies that purchase 10 or more properties per year, often through LLCs or corporate entities. They include single-family rental companies (SFR operators), private equity-backed acquisition firms, and large-scale flippers with in-house construction teams.

Deal Run's investor search includes an "Institutional" filter toggle that lets you include or exclude institutional buyers from your results. On desktop, the toggle is labeled "Institutional." On mobile, it appears as "Inst." to save screen space.

Characteristics of institutional buyers

• High volume: They buy dozens or hundreds of properties per year and are always looking for deal flow.
• Standardized criteria: They have strict buy boxes -- specific price ranges, property types, markets, and condition thresholds. If your deal fits their criteria, they will move fast. If it does not, no amount of convincing will change their mind.
• Cash closings: Institutional buyers almost always close with cash or institutional financing, which means no appraisal contingencies and faster closings.
• Lower per-deal margin: Because they buy at volume, institutional buyers often accept tighter margins than small investors. They might pay more for a property than an individual flipper would, which is good for you as the wholesaler.

When to target institutional buyers

Institutional buyers are ideal when you have a deal that fits their criteria precisely and you want a fast, certain close. They are less ideal for unusual properties, creative deal structures, or deals that require nuanced negotiation. They tend to be binary -- the deal either fits their buy box or it does not.

Matching your deal to the right investor type

Choosing the right investor type to target depends on three factors: the property's current condition, its price point, and its location characteristics.

Use search filters to narrow your results to the investor type that best matches your deal, and use Investor Score to identify the highest-probability buyers within that type.