Hey BP family!
I am a 21 year old newbie who is trying to get his foot in the door in real estate. I have been reading and listening to countless podcasts and am inspiring to learn more as I go.
As of recent, I have been trying to calculate cash flowing rental properties and I feel like I’ve stumbled upon a good deal. I am looking out of state since my market is expensive. Also, I am still discovering and trying to learn how to create my team on the ground while I invest from out of state.Therefore, I have questions with how the step by step process works after you find a good deal.
What is the first thing you want to do after you find a good deal?
How do I go on with approaching the realtor who is representing this property that I feel like is a good deal ?
Sorry if these question seem “dumb” I’m just trying to soak as much information I can before getting out there and want to sound professional and confident when I am interacting with professionals. Any advice would be greatly appreciated! I am also new to BiggerPockets and would love to connect with other investors!
Hi @Gurmanpreet Singh ! Once you have identified that something is a good deal (meaning a deal that meets your criteria for investing) you'll want to make a move on it. If it's a good deal, but you don't get it under contract then it's a good deal for someone else.
Before you get it under contract you'll want to know how you can finance it. If that will be a loan from the bank then go ahead and talk to the bank and get a letter from them sharing that "we're doing business together" or "we've preapproved Gurmanpreet for this loan". Then, with this in hand you can reach out to your agent --your agent, the one who works excellently to guide you and protect you in the process, not necessarily or usually the one who works to guide and protect the seller of the property -- and let them know what you've found, make sure they don't know something that was not factored into your numbers, and then have them draw up an offer!
If I found something that was a good deal today I'd have a little party. It's a freaking wasteland out there right now!😂
@Gurmanpreet Singh why are you approaching the selling agent. Get an agent in the area that acts in your interests. The selling agent has a fiduciary right to act in the best interest of his client. Find an agent that helps investors. Are you pre approved? Do you have a down payment? These items will go along ways to a buying agent saying you are serious.
If it is a good deal get it under contract and do your due diligence.
@Will Fraser thank you so much. This helped a lot!
@Tim Herman thank you so much , I was confused with the process and this helped clear it up!
That's good advice even if you're investing in your own backyard!
It kind of depends how much homework you've done already. If you're just going by a spreadsheet, you really aren't in a position to determine whats a good deal yet. You need to actually see some houses, their condition, location, neighborhoods, etc. in a city your interested in. Once you do that you can start making relevant comparissons. Try to find a buyers agent who deals with investment/multi units. Just look at past sales or current on the market multi units. They can show you different houses and give you a sense of what to look for.
And another thing to note--be sure you're taking into account appreciation. No one knows for sure what it will be, but there's a reason cities that haven't appreciated at all in the past few decades are cheaper than cities that have. You can make at least an educated guess
And eventually, you need to just jump in. You'll never see a risk free deal. There will always be some questions
I will for surely do that! In the process of looking for a buyers agent right now. Amazing advice, thank you!