Why am I being ignored?!

28 Replies

Hello everyone,

I'm a new investor and I'm currently searching for a multifamily property in West New York. I'm separating from the military at the end of the year and I will be attending college. I will only be receiving GI Bill money because I can't get a job yet, GI Bill money cannot be used for a mortgage because it's not considered income, so I will have to find a place with owner financing or lease options...

Every real estate agent I try to reach out to just ignores me; it's becoming frustrating. I understand the reason I'm being ignored is because no one wants to help someone starting out without any solid money because they would probably just waste a lot of time.

What can I do here?! Should I rent and wait on promised income? Reach out to FSBO's?

I'm not entirely ignorant of Real Estate, I just need one break to prove this fact.

I want to have a home locked in before I arrive with all of my household items and no house!

Any input would be greatly appreciated!

Thanks!

Best regards,

Richard Boyd

The best advice in all honesty is to be persistant and keep at them and dont give up. A few weeks ago i was in your shoes about getting a realtor to work with me on deals and it worked out eventually. I have 2 good realtors that go through step by step with me to understand. Dont give in, give it your all and make sure that the realtor is investor friendly!! Welcome to bp

Basically, what you are looking for are houses that are typically not represented by Realtors. When a house is listed with a Realtor, the commission to be made by a realtor representing the buyer is known. Very few homes listed this way have owner financing or lease options associated with them and conversely, the homes with owner financing or lease options are generally sold by the owner without Realtor involvement. So...the reason they are ignoring you is because they already know what you don't......it is highly unlikely they will make a dime from you so why get distracted from their next $5,000+ commission.

There are ways you can mitigate this. You can sign a Realtor up to act as your Buyers Agent and get their time and attention. In the agreement, you specify that you will pay them a certain amount....either daily or hourly....whatever you two can agree to. This payment will most likely have to go to their broker who will then decide what amount actually goes to your agent, but that varies by state and is your agent's issue to worry about. This way the agent knows they are getting paid either way and opens the door to For Sale by Owner deals that aren't offering commissions. The good news is, you can specify in your contract that if you buy something, and the agent does get a commission paid by the seller, that whatever you have paid to them, up to the amount of the commission, gets returned to you and the agent simply gets the normal commission. Often times, a Realtor can talk a For Sale by Owner seller into paying the Buyers agent commission so you may not have to. But, if you don't buy anything, or buy something so cheap the commission is negligible, this money you pay to your Buyers Agent will get you the time, services and attention of a Realtor.

If you want a house bad enough, put your money where your mouth is.  If you just want something for free, well, don't get upset if someone smarter that you doesn't want to give it to you.

Hey Richard,
I am originally from Western NY, Niagara Falls to be exact. My entire family still lives there. The only advice that I can offer is to be willing endure the growing pains. We've all been there and it can be so frustrating. Buffalo is growing economically and generally that means big opportunity for real estate. Be patient. Stay on BP there are a lot of very knowledgable people BUT ALWAYS DO YOUR DUE DILIGENCE no matter where you get your info!!!
Best of luck!
Sheila

Forget the RE Agents.  If you are looking for seller financing, lease options, or anything where there's a delayed purchase (i.e...payment), they are also waiting to get paid...not going to happen.

You need to contact a RE Investor in the market you are looking to buy. What you are describing, is what they do for a living. Contact a local REIC in that area, and they should be able to get you where you want to go. Go online and do a search for that REIC. Most areas have a number of REICs. Hit them all...and don't get to picky about the club having to be really close to where you're buying. REI cover a lot of ground...even out of state....and Good Luck....and thank you for your service.

@Richard Boyd

Richard, 

On behalf of all Realtors in New York, I apologize for not getting back to you. 9/10 times agents only work with qualified buyers. This means they are already pre-approved by a lender and ready to purchase a home. I am not counting you out but that is our rationale when it comes to buyers. We work with people who have steady income and can purchase a property because your purchase = our income. My suggestion is this, learn your market, network with people on here, and find an investor who will take you under his/her wing. If you're more serious, you can always check out FSBO's, go on google and type in FSBO's in your area. Compare houses to one another.

BE WARNED: Do your due-diligence and do your numbers before making a purchase. I just had a FSBO who wanted to sell his place for 2x for what he purchased it. There are those people out there who want to make a quick dollar off of you.

If you have any questions or want to talk message me sometime. I have to problem answering your questions.

Wow. So first of all, thank each and every one of you for your time and advice; I'm extremely greatful!

@Ramar Price Thank you for the encouragement

@Chris Simmons Thanks so much for informing me of Buyers Agent. I will definitely consider that. Thank you!

@Sheila F. Thank you for the encouragement and thanks for the due diligence reminder as well!

@Joe Villeneuve Great advice! Thank you so much for responding. I will surely reach out to other investors!

@Nick Rutkowski Nick,

If I must be honest, I did not search for too many agents before I lost hope, but I appreciate you replying. Thank you so much for reaching out! 

@Account Closed Thank you for your reply. I really appreciate you reaching out. 

Thanks again everyone, your help has assisted me greatly!

Keep us posted. We're all here to help each other!  Also, thank you for your Service of the Greatest Land of Opportunity!!!  It's the men and women like you that give us the ability to pursue our dreams!!!  ^5!!!!

hi richard. keep this in mind. your best deals out there are NOT listed. realtors serve a great purpose. but they don't have every house that is avalible. i find houses all the time that are vacant for one reason or another. most need serious rehab. my advice to you is to look around. look for houses that are obviously vacant/ abandoned. i know this doesn't help you with finding a place for yourself and all of your belongings, but if you can get into something temporary for now, you can hone your skills in finding just the right place. good luck to you

Originally posted by @Richard Boyd :

Hello everyone,

I'm a new investor and I'm currently searching for a multifamily property in West New York. I'm separating from the military at the end of the year and I will be attending college. I will only be receiving GI Bill money because I can't get a job yet, GI Bill money cannot be used for a mortgage because it's not considered income, so I will have to find a place with owner financing or lease options...

Every real estate agent I try to reach out to just ignores me; it's becoming frustrating. I understand the reason I'm being ignored is because no one wants to help someone starting out without any solid money because they would probably just waste a lot of time.

What can I do here?! Should I rent and wait on promised income? Reach out to FSBO's?

I'm not entirely ignorant of Real Estate, I just need one break to prove this fact.

I want to have a home locked in before I arrive with all of my household items and no house!

Any input would be greatly appreciated!

Thanks!

Best regards,

Richard Boyd

Richard

What are you trying to accomplish? Give me detail specifics, then I can help with some advice. There are a lot solid investors here. Who can jump in and give you a game plan or lead you in the right direction. 

I would also attend as many local real estate meeting as possible.

Education is huge in any investment some one makes.

Alex

Richard,

I think you may be misinformed on your G.I. Bill benefits and that's hampering your options. You CAN get money for housing in addition to your actual education costs. The Post-9/11 G.I. Bill pays your for your housing based on the BAH rate for the area you are attending school. 

http://www.benefits.va.gov/GIBILL/resources/benefi...

So, why can't you purchase a duplex, triplex or fourplex as your primary residence (qualifying based on the BAH you will receive), live in one unit while renting the others (cash flow in your pocket), then finish college, move to your job location, rent out the unit you lived in and start your investing adventure all over again?

@Alex Franks

I have to start somewhere. I won't have much saved, but we will be receiving 3k a month from the GI Bill until we can find  some part time employment, then that 3k will be additional. As far as employment goes, we can't really look for a job until we get there because it's too expensive traveling back and forth from Spain. We would like to purchase our first investment property as an owner-occupied multifamily, but if there is a better way please let me know. After being employed for about 6 months, we should qualify for a loan, but until then, we need to get owner financing or lease option on a property. Does this help at all?

@Walter Key

Hey Walter,

I understand that I will be receiving the BAH allowance, but since it's not a promised income, banks will not grant a mortgage because it's not considered income.

https://www.veteransunited.com/valoans/can-i-qualify-for-a-va-loan-using-gi-bill-income/

Richard,

My apologies. After a little more digging, you are correct that the BAH stipend still doesn't qualify as "income" in regards to qualifying for a mortgage. As a Navy Senior Enlisted Leader, I'm now very interested in this issue. While I understand the reasoning for a bank not wanting to use a temporary income stream to qualify for a 30 year loan, it still doesn't seem right to me. I've got a fellow Navy Chief who just retired and is in the process of using his Post 9/11 G.I. benefits for college. I'm going to reach out to him and ask if he's run into any work-arounds on this. If I come across anything that may help you with this, I will be sure to push it your way.

Richard,

Something else you may want to consider... If you're looking to buy a multi-unit property, you may be able to use the rental income as your qualifying income? You can use 75% of the rental income to qualify. There are some specific criteria and stipulations (6 months cash reserves, etc) but it might be something worth looking into further. 

http://www.vanewsblog.com/2012/08/va-loan-reader-q...

http://www.benefits.va.gov/warms/pam26_7.asp

@Walter Key I'm so grateful for your help Walter. Even if the reasearch doesn't lead anywhere, I really appreciate you taking the time to help me!

Yes, I looked into using rental income as qualifying, but 6 month cash reserve was lacking. I've been traveling all around Europe and haven't thought much about reserve cash, like an idiot. I know that was irresponsible, but it's kinda out of my hands now, unless you know of a way to get cash that quickly. Maybe I could get someone to transfer me the money and I could pay a good interest on it for a year, because I do work with a dentist now that will be in Buffalo with me; he is going to help me into dental school. I'm not sure what else I could do.

Or how about a normal FHA loan? I can have a down payment of 10%, would I still be able to use the 75% rule? And would the allowance count then?

If no, could I just have a co-signer that has employment?

Is the rental on a yearly lease? How much cash flow is it bringing your way? I'm not very familiar with all the FHA underwriting guidelines but it never hurts to ask. I'd pose that question to a realtor or two that have experience with FHA loans.

@Richard Boyd I sense the frustration. I can say you have a lot of options. In the mean time be prepared and nothing can replace hard work. Maybe you can't
get a mortgage now but when you can, make sure you have as much knowledge as possible to seize the opportunity. I used to tell alot of people when I worked at the bank, if you were in my position and somebody came that you had no history with and asked for a loan with your exact same situation would you lend your own money to them. While blunt it was effective and I used it to guide my own investing over the years. Hopefully that can help guide you in your next move, as I think it applies to every person you work with.

@Walter Key

I made the lease for 5 years and there's an option to buy at the end, but the renter would've already paid the total price. I sold to distant family so I didn't include interest, just a hard price. This is a small home and I'm just using the extra cash to help me through college.