Running out of time!! Need advice.

Starting Out
5yFollow

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
159 views

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
See this reply in the discussion

58 Replies

Jump to latestLatest
  • Frank A Castro
    OP
    Member since 2020 · 60 posts · 32 votes
    5y

    @Jake Soper That sounds great. I could definitely do that.  I'd love to know how to outsource that type of information. And of course i'd love to talk more about this. 

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

    @Jonathan Duhon Yes sir. That seems more and more the thing to do. Honestly, I can't thank you guys enough for just taking the time to read through and genuinely try to help.  

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

    @Justin Reed Yes sir, that sounds about right. I could probably make that happen in my future deals. I am just pretty inexperienced at the moment and my job limits me sometimes. That's why I have defaulted to an agent. Meanwhile I have been working on getting my RE license also. 

    Trying different agents seems fair.

    0Reply
  • Erik B.
    Rental Property Investor · Amityville, NY · Member since 2018 · 351 posts · 441 votes
    5y

    Thank you for your service.

    you need more from your agent than "they went with another offer". Tell your age t to do their job.

    if its been long enough your agent can look back and see the sales price and financing type of properties you have offered on. Hell you  can even find the price on zillow. Then you'll know if you are being outbid by amount or terms

    1Reply
  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    5y

    @Frank A Castro

    Contact your USO. There is more help there than pretty girls and a pool table if you use them. The USO is a service organization that has helped service members for many years!

    You may also be able to extend your lease. Your landlord can be persuaded to help.

    Good luck, Semper Fidelis!

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

    @Erik B. That's what I thought ! And that is actually really good idea. I will look into that myself. Thank you sir. 

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

    @Daniel Luke Interesting. Never saw USO as an avenue for this matter, what a dummy. I will ask in my command about this. Thanks !

    0Reply
  • Jeremie Torres
    Rental Property Investor · Baltimore, MD · Member since 2020 · 53 posts · 48 votes
    5y

    @Frank A Castro

    Let’s do worst case scenario of you not getting out of the lease on time. Would you be able to persuade the leasing office to extend with a reasonable amount? Maybe try to give them a sign that you’re servicing our country that a little break from them could go a long way? Thank you for your service wholeheartedly btw!

    As far as the agent, switch with a real investor type. Many obvious reasons why but here's one; I was in your shoes just a few weeks ago. All of my clean and overbid offers were declined. But I finally found one! How? My agent had a listing of his own multifamily unit that was under contract but fell apart cos of the first buyer's financing didn't go through. So before he put it back in MLS, he gave me first dibs on it and made an offer on it right away. Essentially an off-market deal. Now I'm under contract.

    Does the wife up to the task of taking over your interest when it comes to RE investing? Maybe when you’re deployed, she can be your “boots on the ground” while you’re away?

    Main thing is not to rush this whole thing. But settle with apartments first see you can work it out with them. Or maybe move to another apartment that can accommodate you and be more flexible with your deployments and statuses. Just some things to consider if it goes down the wire.

    Wishing you good luck!

    0Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Frank A Castro

    @Patti Robertson is down in that area and has all the experience in the world.  Let her help you.

    If you need a loan, she'll probably recommend TowneBank. They do great things down there. If you want to compare VA rates to theirs, PM me and I'll send you to my guy. Not a solicitation; me and my company don't do VA, but we recommend a guy that does a good job with decent rates.

    Thank you for your service and best of luck to you, your wife and the wee one.

    Stephanie

    1Reply
  • Joshua Hower
    New to Real Estate · Claymont, DE · Member since 2021 · 8 posts · 13 votes
    5y

    Hey Frank,

    As an OEF vet, I wanted to throw my two cents in.

    You might not get a lot of free time, have limited internet access, or other conflicts come up during your deployment. This could be a problem for your family to deal with unless they have the expertise or connections to handle issues without you.

    House hacking is a great option, and I used my VA loan to purchase my first home with success. However, with the VA loan, the process fees, no closing costs, and maxing out the LTV on the house really set me back financially. I would recommend setting up a budget, getting a new lease for the family, and taking advantage of your deployment income to save that initial down payment.

    Also, from memory, sellers don't like VA loans as there are more restrictions, mandatory inspections, and things sellers have to pay to protect the buyer.

    After making several bad deals myself, I've learned always to be willing to walk away from a deal. If you are up against the clock, you probably will make less than stellar house picks to make a deal work. This bad pick will most likely drag your timelines down and stall you out as long or longer than the deployment.

    2Reply
  • Kade Lucero
    Realtor · Salt Lake City, UT · Member since 2020 · 26 posts · 23 votes
    5y

    @Frank A Castro You don’t necessarily need a zoned duplex. I buy single family homes with mother in law apartments and they cashflow beautifully! You’re buying at the single family price and renting for a multi family price, which is more. They’re also easier to sell in the future because they’re single family, which has a larger buyer pool. You can keep looking for duplexes, but I would have your agent set up a listing alert for single family homes with mother in law apartments as well. I bet you’ll at least double the number of potential homes you can put offers on and increase your chances of getting one! You can also have your agent pull previously sold homes with mother in law apartments from at least 5 years ago and knock on their door to see if they want to sell.

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

    Thanks @Stephanie P.. Frank and I have chatted and I gave him some pointers.  Our market is a ghost town of properties right now though.  Not nearly enough available property for the number of buyers we have.  As a result people are paying stupid high prices with no inspection, guaranteeing paying way over appraisal, etc.  It's the wild wild west.

    757-472-2547
    0Reply
  • Deanna Skelcy
    New to Real Estate · 48309 · Member since 2020 · 10 posts · 1 vote
    5y

    @Frank A Castro Try writing a personal letter to include with your offer. Tell them about yourself amd what you plan to do with the property. Include a photo of you and your wife. My husband and I placed several offers on properties before trying this. The next 3 properties we offered on and included the letter all accepted the offer.

    0Reply
  • Lizeth Nevarez
    Member since 2021 · 4 posts · 1 vote
    5y

    @Frank A Castro same thing happened to me but in Houston TX. According to my realtor my offers were not accepted most of the time because someone else came in and offered CASH, which means the seller could close quicker. Also, my agent mentioned sellers sometimes become intimidated by VA loans because of the appraisal and inspection contingencies. Pretty much with a VA or FHA loan the buyer can walk away from the deal if the property doesn't appraise and sellers do not like that. Hope this helps.

    0Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    5y
    Originally posted by @Patti Robertson:

    Thanks @Stephanie P.. Frank and I have chatted and I gave him some pointers.  Our market is a ghost town of properties right now though.  Not nearly enough available property for the number of buyers we have.  As a result people are paying stupid high prices with no inspection, guaranteeing paying way over appraisal, etc.  It's the wild wild west.

    Glad you were able to at least give him some pointers.  I knew you were really strong down there.  Stay safe.  In the DC area, we got a nasty ice storm.  Hopefully it stayed north of you.

    Stephanie

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Frank A Castro It's really competitive out there. A lot of buyers buy very little inventory.

    I will suggest you refine your criteria and see how that help your situation.

    Goodluck and thank you for your service.

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    0Reply
  • David Beckley
    Investor · Saint Louis, MO · Member since 2015 · 204 posts · 37 votes
    5y

    @Frank A Castro this is a tough one. If your area is like the rest of the country, it's a sellers market and inventory is so tight. Not trying to defend your agent, but with your time frame being so short, it's a lot to ask. I understand your situation being former military myself. Just keep making offers. That's the name of the game.

    0Reply
  • Chinyere Orie
    Real Estate Agent · Baltimore Maryland · Member since 2019 · 98 posts · 74 votes
    5y

    First off, thanks for your service! In regard to your question, honestly, the market is so hot right now, it's hard for buyers to get under contract. If you're going after properties on the MLS rather than off-market deals, you'll likely be in multiple offer situations. I live in Maryland, not too far from you and here, I have buyers with all types of financing (cash, FHA, VA loans, etc) going up against at least 7 other offers on average. I don't think your agent is really doing anything wrong; it just could be that the sellers are getting better offers. Your agent should try to find out what the winning bids were on the homes that you put offers on so that you have an idea of what you're up against. I would also consider off market/FSBO properties. Also, are you able to go month to month on your lease?

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

    @Stephanie P. Thank you for the heads up. @Patti Robertson contacted me and gave me a basic run down about the current situation , lol. Basically a bad time to get in the game. 

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

    @Wale Lawal Thank you sir !

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

    @David Beckley Absolutely. By no means I am trying to blame my agent. Out of my lack of experience I just wanted to see the POV of more seasoned people . 

    Thank you for the advice sir , and thank you for your service. 

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

    @Chinyere Orie Thank you for your response . A few of you already brought this up to me.  I have asked the agent several times and the answer I get is "They went with another offer" , and that property gets forgotten and we move on. 

    Regarding to the month to month lease I will have to talk to my landlord , because they are charging me 50% over my original lease price for a month to moth, which is ridiculous. This covid is not making easy on that matter either , because their offices have been closed for a while , only answering to emergencies and maintenance work , which I understand. 

    0Reply
  • Ravi Kiran
    Rental Property Investor · Chandler AZ · Member since 2018 · 28 posts · 4 votes
    5y

    @Frank A Castro

    Here are some options you could try to get your offers accepted:

    > Try increasing your Earnest Money - make it 5K or 10K or 20K whatever to show that you are serious buyer. You always have due diligence to verify stuff.

    > Don’t ask for Closing costs/Concessions from the seller, that will make your offer weak in front of other offers.

    > I wouldn’t suggest to everyone. But an option is to try Hardmoney and put Cash offers Below asking price; but here you are taking a risk not knowing whether the property would be apprised to the value. And you would be paying for double closing costs. It only works if you are getting it at a smoking deal.

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

    @Ravi Kiran Thank you for your response. Those are great advices. 

    For increasing my EMD , I will definitely bring that in the game in my next offers. Answering to your second advice ,I haven't been including closings in my offers lately . I even have been offering over the asking price, with me paying the closings.

    The hardmoney for me is kinda out of the picture because since this would be my first deal , I haven't been able to find anyone that would lend me an important amount of money ( at least that's the answer I have gotten from the companies I have applied with ) . And honestly ,I am finding it so hard to get me  a smoking deal in this market . 

    0Reply
  • Darren Ruch
    Member since 2018 · 7 posts · 0 votes
    5y
    Originally posted by @Paul Schu:

    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.

    I second this advice.  In my experience, it all comes down to time OR money - either you wait for the right deal/terms/price OR you pay for what you want right now.  I was in the same boat, none of my offers were being accepted because of my financing.  So, I had to pay upfront for a bridge loan and then refinance it out to get my down payment back.


    Best of luck, and thank you for your service!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free