New Investor Seeking Guidance: First-Time Steps Before Approaching Realtors

Houston, Texas
Starting Out
2yFollow

New Investor Seeking Guidance: First-Time Steps Before Approaching Realtors

Zac Hugh Nguyen
New to Real Estate · Houston · Member since 2023 · 8 posts · 5 votes

Hello, BiggerPockets community!

I'm thrilled to be part of this amazing community of real estate enthusiasts. I've recently caught the investing bug and I'm eager to take my first step into the world of real estate. However, before I dive in, I want to make sure I'm fully prepared and armed with the right knowledge. So, I'm turning to you experienced investors for some guidance.

I'm curious to know: What are the first 5-10 steps a first-time investor should take before going to a realtor to find his/her first property?

I believe that laying a strong foundation is crucial, and I want to ensure I'm making informed decisions from the very beginning. Any advice on how to educate myself, what research to conduct, financial preparations, getting pre-approved for a loan, or any other initial steps would be greatly appreciated.

Here's a bit about my current situation: I've saved up a decent amount for a down payment, I have a stable job, and I've been reading up on real estate investing. However, I feel a bit overwhelmed with the sheer volume of information out there, and I'm not sure where to start.

I'm particularly interested in long-term investments and potentially exploring rental properties in the future, but I'm open to any profitable venture in the real estate market.

So, seasoned investors, what say you? What steps did you take when you were in my shoes? Any pitfalls to avoid or resources you found particularly helpful? Personal anecdotes and specific strategies are more than welcome! I'm all ears and ready to learn.

Thank you in advance for your valuable insights. I'm looking forward to embarking on this exciting journey with your guidance!

Best regards, 

Zac Nguyen

1Reply
17 views

4 Replies

Jump to latestLatest
  • Preston DeanBusiness Member
    Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
    2y

    Hey Zac!

    Welcome to BP!

    I personally purchased a house and lived in it for 2 years and house hacked my way into a rental. This was the most affordable thing for me to do at the time and also let me get into RE investing easily. The house now rents for about the 1% rule (1% of the purchase price) and we're able to cash flow a couple hundred a month. Not a ton but we're building equity and having the mortgage being paid down while also providing nice affordable housing to some great tenants!

    [email protected]817-480-9452
    United Real Estate DFW Properties 565 Reviews
    WebsiteView Page
    0Reply
  • Gustavo Delgado
    Houston, TX · Member since 2015 · 261 posts · 170 votes
    2y

    Narrow down what type of property you want to look for. If I would do it again I would go straight for a 2-4 unit. Get loan approval. Once you have that you are serious and a realtor will be willing to work with you. Without an approval most realtors will not take to much time on you. And if you really want a serious realtor to work with you, don't hesitate to sign a rep agreement. Hell make it for one month and have them show you that they are working so they can re-sign you again later on.

    0Reply
  • Mary Ogden
    Real Estate Agent · North Las Vegas, NV · Member since 2019 · 19 posts · 13 votes
    2y

    Hi Zac,

    It seems like you have a solid foundation on the financial and knowledge side of things. 

    In my opinion, I am a realtor and would suggest you start looking for a good agent who is knowledgeable in real estate investing. Not all agents are "made" equally, so finding one who is an investor as well will help you immensely. I don't believe you need to have everything 100% figured out before you speak with an agent. There is a lot of information out there and a good agent will help you sift through all of that. If you are having a tough time finding a great agent, I have an expansive network and would be willing to help you find the right one to help with your needs and wants. Let me know!

    0Reply
  • Joe Davis
    Lender · Houston, Tx. · Member since 2023 · 91 posts · 60 votes
    2y

    Zac,

    As a realtor in Houston, and someone who used to market to 3000 realtors a day for off market properties let me tell you it's not easy. You will have to do something to set yourself apart as an actual buyer with credibility. 

    if you want some real in-depth advice, feel free to reach out to me. I am also in Houston (Pearland). 

    The first recommendation i would say is find a good realtor (friend/family) who will give you access to their MLS. Learn how to search for Sold listings which were investment properties. Now, look at the listing agent on that property and call them directly. Mention the property that sold - and tell them you are looking for something similar. Have a POF/PAL letter ready as you need to stick out from the crowd (and there is a big one in Houston) calling these realtors every day.

    Be completely honest with the realtor, tell them how you are purchasing the property and don't forget to follow up with the goods ones, that give you their time. There are a TON of people who should not be realtors. Don't waste your time on those. 

    In short - call realtors who have worked with investment properties recently - in an area you are familiar with or want to buy, look for the realtors who give you plenty of advice and are willing to chat and follow up. A deal will soon follow....

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free