I have a list of properties that I've been looking at and researching. I feel like I want to reach out to homeowners to see if they are willing to sell, but I have cold feet. Is it better to get financing in place first, or have a seller ready to sell? I don't want to approach a homeowner with no plan because then they won't take me very seriously. I also don't want to approach potential investors without a possible deal... Am I going about things totally wrong?
If you get a good deal, there'll always be plenty of interest and money.
On the other hand, you don't want to make promises to home owners you cannot keep. Perhaps you should start networking in your area first and get some ideas from other investors. And that should help you build more confidence as well.
Thanks @Chris T. That helps put things in perspective a bit.
@Carmen Lewis I'm going through this a little bit myself. I think you should at least know where you stand and be cognizant of that fact. If you have terrible credit and no money, I probably wouldn't be making offers. If you have good credit, good income, and a sizable downpayment, finding a loan should not be too difficult. There are thousands of lenders, you only need one of them to finance your deal. You can talk to lenders and get an idea of where you stand. Talk to some and see if you can get pre-approved for a loan. If things look good in their eyes, it's time to make some offers. Also, The few lenders that I have talked to have not seemed to mind the fact that I do not have a property. Each one I talk to I simply tell them the max amount I am looking to borrow and I tell them that I am actively searching and that I anticipate getting something under contract soon. Then, it seems, the details can be worked out after that happens.
I just met with an investor friendly REA the other day that specializes in Foreclosures. He was able to give me a bit of direct insight on certain things and how I can do certain things with Flipping (Wholesaling) REO properties.
After building some rapport with him, he also gave me his personal HML contact info. Someone that is local and won't bail on you 48 hours before closing. #Networking #Works
And to be honest, it's not a bad idea to reach out to some motivated sellers so you can get comfortable with talking to them for the future. Just don't sign a Purchase and Sales Agreement until you have the right info and contacts to back you up.
@Shaun J. perhaps I should have mentioned my list is from driving for dollars. But thank you for the tip about not signing a purchase and sales agreement until I have things to back me up. I'd hate to finally talk to someone, get a property under contract, and then get stuck!