Running out of time!! Need advice.

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Running out of time!! Need advice.

Frank A Castro
Member since 2020 · 60 posts · 32 votes

Hi there everyone, 

I introduced myself around 2 months ago in the BP family. I have been looking for my first investment property since a bit before that. I haven't been so lucky. 

I am currently targeting small multifamily homes ( duplex, triplex ) , so I can live one unit and rent the other one out ( house hacking 101)and I have already been preapproved with a VA loan. I've placed multiple offers already through my realtor agent ( offering more so buyer pays closing, offering asking price while I pay closing , offering over asking price while I pay closing ) and none of them have worked, not even with the possibility to counter offer. Putting money down is currently out of the game.

The reason why I am running out of time is because my lease is almost due and I will be going on deployment , leaving my wife and  our little one , that is on the way . 

Is it really that hard ? How do I know if my agent is pushing hard enough to get the deal. I am the one finding the deals, doing the numbers (obviously)  and asking most of the questions, only using my agent to see the house and place the offer.

I am looking for property in the Va beach , Chesapeak , Norfolk area in Virginia. 

Thank you everyone in advance for taking the time and read through this. 

6Reply
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Most Popular Reply

Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
5y

@Frank A Castro

I'm not familiar with your market so can't really help you... just wanted to say THANK YOU FOR YOUR SERVICE!

8Reply
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  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    5y

    @Frank A Castro

    I'm not familiar with your market so can't really help you... just wanted to say THANK YOU FOR YOUR SERVICE!

    8Reply
  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @Frank A Castro What defines a property that meets your criteria?

    757-472-2547
    1Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Dmitriy Fomichenko

    My pleasure, sir .Thank you for your support. 

    1Reply
  • Justin Lanciault
    Realtor · Washington, DC · Member since 2018 · 166 posts · 88 votes
    5y

    Are you looking for an investment property or a primary residence? I had a listing one time and the buyer's agent did not check that the buyer intended to use the home as a primary residence BUT had VA financing. I asked the buyer's agent and if it was a mistake and they said no, it's an investor buying with a VA loan, which multiple lenders have told me is not possible. That buyer did not get a counter.

    The other thing could be the perception of the VA loan in general. Is your agent getting feedback as to why you are losing?

    1Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Patti Robertson A property that has more than one unit, less than four ( I would live one of the units ). The unit that I would move into should have at least 2 bedrooms .Decent neighborhood. No excessively far from my work , in good shape enough to be accepted by VA loan , and more importantly, that will generate positive cash flow.

    1Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Justin Lanciault I intend to live in one of the units. VA loan would not approve an investment property. However , you can buy a multifamily property of up to 4 units for personal residence. Honestly I would be satisfied with a duplex to start with as long as it meets the criteria mentioned above.

    The only feedback my agent gave me was not to include closing costs in the offer ( even if I was offering a premium for it). Other than that, all I hear every time is : " Property X went with a different offer "

    0Reply
  • Justin Lanciault
    Realtor · Washington, DC · Member since 2018 · 166 posts · 88 votes
    5y

    @Frank A Castro Sure, I know that VA would only approve a primary, which is why I am asking.


    It sounds like you might need a new agent or need to have a super aggressive offer - no contingencies, over asking, pay your closing and pay the seller's too.

    3Reply
  • Kristopher KyzarBusiness Member
    Rental Property Investor · Norfolk, VA · Member since 2017 · 260 posts · 174 votes
    5y

    @Frank A Castro I sent you a message.

    2Reply
  • Douglas Mcqueen
    Rental Property Investor · Virginia Beach, VA (Virginia Beach) · Member since 2019 · 173 posts · 129 votes
    5y

    @Frank A Castro the Hampton roads market is tough right now, supply is very low and demand is high. Unfortunately VA offers are viewed as not strong, mainly due to the stringent appraisals. Best advice I can offer is to wait it out, or go direct to seller, once the property hits the MLS you are competing with everybody and ultimately paying commission adding upwards of 6%. Reach out directly to the seller before they reach out to an agent l, cut out the commission and the competition.

    3Reply
  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @Frank A Castro - So you are trying to fund 100% of the purchase and need it to pass a VA inspection. What is the max you are willing to pay?

    757-472-2547
    0Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Douglas Mcqueen that's the thing. I am having a hard time finding a seller before it hits the MLS.

    0Reply
  • Douglas Mcqueen
    Rental Property Investor · Virginia Beach, VA (Virginia Beach) · Member since 2019 · 173 posts · 129 votes
    5y

    @Frank A Castro it’s a grind, but start driving around writing down address’s, then track the owners and start making phone calls. Your agent can help, may not be willing, but they can pull a list of all 2/3/4 unit buildings in a particular area for sale or otherwise through REIN. If they won’t do it for you then, identify neighborhoods that meet your criteria and start driving.

    1Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Douglas Mcqueen I will definitely take that advice. Thank you !

    0Reply
  • Colin Fleming
    Member since 2018 · 17 posts · 3 votes
    5y

    Hi Frank, thank you for serving our country.  Find a neighborhood group in your area (there may be several in a larger metro area) such as Nextdoor etc.  Join and be active for a week or so, making sure to be sincere.  Then post that you are looking for an off market duplex and need your neighbors help.  This has worked for me the two times I tried it.  People are generally willing to help out their neighbors.

    Good Luck.  Let me know how it turns out.  

    2Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Colin Fleming Thank you sir, I will definitely look into that . 

    0Reply
  • Joseph Harr
    Virginia Beach, VA · Member since 2017 · 67 posts · 26 votes
    5y

    @Frank A Castro It's tough out there. If you can't find anything now, could you keep renting your current place on a monthly lease? Paying a couple bucks more per month now might be better than buying a house that doesn't fit your criteria. 

    3Reply
  • Paul Schu
    Rental Property Investor · NC, IL · Member since 2018 · 86 posts · 47 votes
    5y

    I would say don’t rush it, that’s when you might end up overpaying or getting a property that does not work for your cash flow needs. See if you can extend your current lease to end shortly after your redeployment date and if possible do as much looking online as possible while you are deployed.

    Also you are buying so, don’t be afraid to go out and talk to a couple different agents. If the one you have is not getting it done try a few others and compare. 

    2Reply
  • Michael S.
    Huntsville, AL · Member since 2018 · 577 posts · 864 votes
    5y

    @Frank A Castro - thank you for your service.  

    I honestly suspect the VA loan itself is simply the problem with your offers; perhaps your agent can ask sellers in advance of seeing/offering on properties whether they would accept a VA loan offer or not. Could you do traditional financing instead if it meant securing the deal?

    1Reply
  • Jake Soper
    Real Estate Consultant · Lawrence, MA · Member since 2020 · 216 posts · 157 votes
    5y

    Hi Frank, If you're thinking about finding off market sellers I'd suggest cold calling / texting off market prospects in your area. If you're willing to spend $, direct mail can help lighten your workload and get you some inbound leads. I'd suggest looking into some distress type lists and start calling. Tax lien, code violation, divorce, probate, driving for dollars, deceased : these are all generally high quality. If you'd like to discuss these methods of generating off market deals, I'm open to having a discussion! 

    0Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Joseph Harr Thank you for the advice. The only downside of that is my landlord ( it's an apartment complex) charging me $650 plus ( that's roughly 50% of my current rent) for a month to month rent. It's basically telling me to renew or GTFO, lol. 

    0Reply
  • Jonathan Duhon
    Investor · Baton Rouge, LA · Member since 2019 · 30 posts · 15 votes
    5y

    @Frank A Castro It sounds like this is the perfect motivation to do what so many of us struggle to do - pick up the phone. Like others have said, your best bet might be finding a home off market. I would take all of these folks up on their offers to chat and give you ideas and do exactly as they say. You’ll find your home no doubt. Thank you for your service.

    0Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Paul Schu I totally agree. I have been several months in the process already, for the simple fact that no one wants to lose money , or better said, everyone wants to get the maximum amount possible for their properties in this market. 

    I guess my "mistake" lays on the lack of time to find some off market deals. What my agent told me is that right now people rather put their properties through the MLS because they know that even though they have to pay commissions they most likely get better offers.

    0Reply
  • Joseph Harr
    Virginia Beach, VA · Member since 2017 · 67 posts · 26 votes
    5y
    Originally posted by @Frank A Castro:

    @Joseph Harr Thank you for the advice. The only downside of that is my landlord ( it's an apartment complex) charging me $650 plus ( that's roughly 50% of my current rent) for a month to month rent. It's basically telling me to renew or GTFO, lol. 

    Holy crap!

    0Reply
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Michael S. I would think that's being a problem to a certain extent. However, various friends of mine already closed on their houses ( single family , not multi ) with VA loans. Before even checking out a property I ask if they take VA loan, otherwise I don't even bother.

    Maybe multifamily owners prefer taking other loans over VA ?

    I don't have the amount of money for a Conventional loan downpayment  at this moment.

    0Reply
  • Justin Reed
    Wholesaler · Member since 2020 · 140 posts · 89 votes
    5y

    Why even involve the agent? You can use direct mail and do it yourself. Or try another one and pit them against each other to see who works for you.

    0Reply
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