Finding the right people starting out

16 Replies

As my partners and I are looking for our first property we've been struggling to find a reliable team. From the dozen lenders that have simply ghosted us, to the lawyer that is more then happy to bill us for work that he forgot to do(and is impossible to get ahold of) it seems like everyone we talk to is either terrible at their job or doesn't want to do business with us. 

This friction in the process has been especially frustrating as we do have everything we need together for the lenders, and have done everything we can to make their life easier such as responding timely to emails and getting them things before they ask. 

Has anyone else had these same struggles as they were first getting going? Whether that be having trouble finding a great lender or just being taken seriously?

And...

What should we do moving forward to find the "rockstar" lenders out there that will get back to us and are great at there job?

@Alexander M Dant  A Dozen lenders have ghosted you? Something there doesn’t add up in my opinion. 

I would suggest working with a mentor that can help walk you through the process and create a thought leadership platform. What are you doing now to build credibility to get people to take you serious?

I would also suggest making sure you have professional website, email, and know the real estate lingo. Michael Blank has some great videos about this! 

Let me know if I can help further!

Ghosted may not have been the right word for the scenario. We find ourselves calling lenders 2, 3 or more times before they pick up the phone or email us back. We have a professional email, number and always present ourselves in a professional manner. With all this in place, the hardest part has been hearing back from them without us going out of our way to get a hold of them. I find this odd because we are giving them business and want to give them money, we even present break downs of properties where the numbers make sense to us and how we underwrite our deals.

I understand we do not have a profound track record, however, I do not think this should deter all of them from wanting to deals with us.

@Alexander M Dant the first deal is the most challenging. Following up with lenders 2 or 3 times doesn't seem like much of a struggle. 

Why would a lender want to speak to you now? Do you have a deal? What value are you bringing to the lender? 

I would focus your attention on finding a deal. Find the right agent/broker and start making offers. I guarantee lenders will call you back when you're actually under contract. 

Yes! Great question @Alexander M Dant . My advice would be to get referrals! Find successful investors in the same space you want to get into, and ask them who they use. Word of mouth will give you access to the best professionals who have credibility. 

@Kim Meredith Hampton I will definitely keep looking for some as most of the lenders we are working with are from referrals.

@Jon Kelly Thanks for the great advice. We try to put in at least 3 offers every week. It just might be our market but sellers will not even consider an offer without a pre approval letter. It is good to hear that following up multiple times is not out of the ordinary. We will definitely keep looking and putting in offers, do you have any advice for finding deals off market besides word of mouth and trying to network with everyone we meet?

@Alexander M Dant you'll find deals that do not require a pre-approval letter, especially if you're looking for off-market deals. Maybe instead of pre-approval you can provide "proof of funds" for the down payment portion. The seller can get comfort knowing you have the money for 20-25% down. 

Word-of-mouth, networking, driving for dollars are good approaches. Join local (city/state) groups on Facebook. Try to network with wholesalers. Be specific with what you're looking for (purchase price, location, rehab (Y/N), etc.) 

Update on the lender situation everyone. First, we did end up finding a lender we love who has held our hand through the entire process and has been GREAT about getting back to us. Funny enough, I connected with her in another state through small talk about what we both did for a living/interests well waiting for drinks to come out. Just goes to show you that you can make connections anywhere, anytime.

We're now under contract on our first deal which was another story in itself. Even though we've all heard it 1000x's, the first deal really does teach and show you so much. Knowing how to do something and actually doing it can be two different things but as always it's great to have the bigger pockets community, so thanks guys!

@Justin G. @Jon Kelly @Jeffrey Donis @Kim Meredith Hampton

Originally posted by @Alexander M Dant :

Update on the lender situation everyone. First, we did end up finding a lender we love who has held our hand through the entire process and has been GREAT about getting back to us. Funny enough, I connected with her in another state through small talk about what we both did for a living/interests well waiting for drinks to come out. Just goes to show you that you can make connections anywhere, anytime.

We're now under contract on our first deal which was another story in itself. Even though we've all heard it 1000x's, the first deal really does teach and show you so much. Knowing how to do something and actually doing it can be two different things but as always it's great to have the bigger pockets community, so thanks guys!

@Justin G. @Jon Kelly @Jeffrey Donis @Kim Meredith Hampton

Congrats brother! Keep up the great work, more to come.

 

Originally posted by @Alexander M Dant :

Update on the lender situation everyone. First, we did end up finding a lender we love who has held our hand through the entire process and has been GREAT about getting back to us. Funny enough, I connected with her in another state through small talk about what we both did for a living/interests well waiting for drinks to come out. Just goes to show you that you can make connections anywhere, anytime.

We're now under contract on our first deal which was another story in itself. Even though we've all heard it 1000x's, the first deal really does teach and show you so much. Knowing how to do something and actually doing it can be two different things but as always it's great to have the bigger pockets community, so thanks guys!

@Justin G. @Jon Kelly @Jeffrey Donis @Kim Meredith Hampton

Congrats!

Curious to hear more about this deal, how you found it, and what the strategy is?

 

Originally posted by @Justin G. :
Originally posted by @Alexander M Dant:

Update on the lender situation everyone. First, we did end up finding a lender we love who has held our hand through the entire process and has been GREAT about getting back to us. Funny enough, I connected with her in another state through small talk about what we both did for a living/interests well waiting for drinks to come out. Just goes to show you that you can make connections anywhere, anytime.

We're now under contract on our first deal which was another story in itself. Even though we've all heard it 1000x's, the first deal really does teach and show you so much. Knowing how to do something and actually doing it can be two different things but as always it's great to have the bigger pockets community, so thanks guys!

@Justin G. @Jon Kelly @Jeffrey Donis @Kim Meredith Hampton

Congrats!

Curious to hear more about this deal, how you found it, and what the strategy is?

 

 Likewise!- ??


So a little background on my market and situation first; 

I'm in Clarksville Tn, which you may never have heard of before but is one of the hottest markets in the country. It is 45 minutes away from Nashville, right next to a military base, has a college inside the town and because of the growth of the city has a giant increase in blue collar workers over the past few years.

Since housing prices have shot threw the roof, rent still has not caught up to the price of the market which makes it very difficult to impossible to find single family and small multi family's that will work with traditional strategy's. 

Due to this, and since we know that just finding housing is tough enough in this city, we are doing a rent by the room strategy. So basically turning a single-family 3bedroom/2bathroom into a 3 unit in this deals case. This allows us to bring in much greater cash flow as well as receive much higher CocROI. Granted it is more complicated and their are more costs that you must take into account that a traditional strategy will not have, but very much worth if done correctly.

Just to have a chance in this market we were bidding on houses $15k to $30k over asking(yes, our numbers did still work out asking over the asking price). Using a conventional Fannie Mae loan, we have a 20% down payment and a 30 year loan at 3.5%. Even with us offering well over asking price, we still were getting beat on deals because investors from all over the country were putting cash offers on deals that we went after. It took putting offers on almost 10 deals, negotiating and then having them fall through anyway because a cash buyer came in before we actually got the deal that we are under contract for now.

Also the only reason that my partner and I got this deal is because another agent told our agent that they just had a contract fall threw and we could have first dibs before it went back to the market.(another great example of how important finding the right team is)

At least for this post I won't get into too much of the details of how I run our numbers and exactly what we do for the rent by the room strategy, but for this deal we have a single-family house that we are buying for $197k in very good condition with the seller covering 3k at closing.

@Jeffrey Donis , @Justin G.

Originally posted by @Alexander M Dant :


So a little background on my market and situation first; 

I'm in Clarksville Tn, which you may never have heard of before but is one of the hottest markets in the country. It is 45 minutes away from Nashville, right next to a military base, has a college inside the town and because of the growth of the city has a giant increase in blue collar workers over the past few years.

Since housing prices have shot threw the roof, rent still has not caught up to the price of the market which makes it very difficult to impossible to find single family and small multi family's that will work with traditional strategy's. 

Due to this, and since we know that just finding housing is tough enough in this city, we are doing a rent by the room strategy. So basically turning a single-family 3bedroom/2bathroom into a 3 unit in this deals case. This allows us to bring in much greater cash flow as well as receive much higher CocROI. Granted it is more complicated and their are more costs that you must take into account that a traditional strategy will not have, but very much worth if done correctly.

Just to have a chance in this market we were bidding on houses $15k to $30k over asking(yes, our numbers did still work out asking over the asking price). Using a conventional Fannie Mae loan, we have a 20% down payment and a 30 year loan at 3.5%. Even with us offering well over asking price, we still were getting beat on deals because investors from all over the country were putting cash offers on deals that we went after. It took putting offers on almost 10 deals, negotiating and then having them fall through anyway because a cash buyer came in before we actually got the deal that we are under contract for now.

Also the only reason that my partner and I got this deal is because another agent told our agent that they just had a contract fall threw and we could have first dibs before it went back to the market.(another great example of how important finding the right team is)

At least for this post I won't get into too much of the details of how I run our numbers and exactly what we do for the rent by the room strategy, but for this deal we have a single-family house that we are buying for $197k in very good condition with the seller covering 3k at closing.

@Jeffrey Donis, @Justin G.

 Interesting! Have not heard of the market - but definitely a unique approach. Hope it all goes well! Thanks for sharing.