Why would a lender or a real stateagent be whiling to do business
Why would a lender or real state agent be whiling to do business with an inexperienced person?
Would a real state agent be willing to work with someone or partner some how with a person (in my case a Painting Company owner) that doesn’t know too much or almost nothing about investing in real state?
Why would they be whiling to?
What benefits could they possibly get from it?
For example if I have a liquidity of 10k to 40k would that be my investment or should I just go to a lender? And use their money instead of risking mine in a business that I have not any experience with?
Agents and loan originators will get paid just for helping you through a deal. If you are willing to buy a house or close a loan with them, they'll get paid the same as if they were working with someone experienced. The catch is inexperienced investors are slow to pull the trigger and so agents can get frustrated working and never seeing a commission.
I purchased my first rental property with little to no experience, used 30K between down payment, closing costs, and traveling to the property to see it. Didn't even have a check to make earnest money deposit and ended up racing to a bank to get printed checks before they closed. (Talk about a rookie move)
I think you should use your liquidity as a down payment and get a loan on a rental property that can provide reliable positive cash flow. You'll gain valuable experience in one of the less complicated ways to get into the rental business.
If you have no idea where to start, a turnkey rental referral network will usually have detailed information on one or more markets you might consider. You'll probably find greater margins if you go outside of what's offered to you through the network but it's an easy way to get some great information and usually light refreshments.
Originally posted by @Victor Hugo Juarez:Why would a lender or real state agent be whiling to do business with an inexperienced person?
Would a real state agent be willing to work with someone or partner some how with a person (in my case a Painting Company owner) that doesn’t know too much or almost nothing about investing in real state?
Why would they be whiling to?
What benefits could they possibly get from it?
For example if I have a liquidity of 10k to 40k would that be my investment or should I just go to a lender? And use their money instead of risking mine in a business that I have not any experience with?
Both of these professionals are going to look at you and make a guesstimate of how much time and effort it's going to take to get a paycheck by working with you. They will also estimate how much said paycheck is going to be. If they think you provide a good dollar per hour with a low amount of hassle they will go for it. If not they will pass. The more business that they do the higher the dollar per hour they will require. So if the original folks you reach out are passing on you, you can always go down the talent ladder until you find the folks who are in the spot in their career that coincides with the spot you are in with your investing.
@Victor Hugo Juarez I am a fellow investor and a realtor specializing in helping other investors buy and sell real estate.@Todd Rasmussen is correct that many realtors will get frustrated working with investors. However, I have a very good methodology that works well for my investor clients. But yes, on occasion I get clients that take a long time to get a property under contract and take it thru closing. I currently have a client that has been looking for the ideal rental property since last fall. I have ran hundreds of rent and sold comps for him. Have done numerous walk thru videos of properties he liked after reviewing the comps. Submitted a number of offers on his behalf. But we have yet to close on a property. Most agents would have ended the relationship long ago. But I really do love helping other investors. I am confident we will find him the right property. As long as my clients submit offers on a regular basis I will keep working with them. This dedication is rewarded with repeat business. Plus, regarding lenders I have a few investor friendly ones I always recommend to my new investor clients. The reason is that here in the Dallas/Ft. Worth area it is still a sellers market. So sellers will require a proof of funds (if paying cash) or a pre-approval letter(financing) from the buyers when offers are submitted. If one isn’t provided sellers agents won’t even present to their clients. Thus, if new clients of mine can’t produce one I kindly ask them to get their finances in order before I will help them. My time is too valuable to be spent on “lookie loos” that aren’t ready too pull the trigger on investing. Thus, there are some limitations on investors I will work with. But they aren’t unreasonable. So regardless of the market you focus on you will find investor friendly realtors. Hint, their on BP too.
