When a Agent ask you what is your budget.?

Question

Last night I was going over Brandon Turner webinar and Quite frankly I have to say he’s one of the best and I would also recommend him to anyone who is willing to learn and interested on investing in RE.

Cut the story short. I had a homework to do; which is find a broker or agent and look for a deal .

Early this morning, I made it my duty to find a deal n a broker.

one of the questions that was asked  “ what is your budget?” .. for all my BP members I need help answering this question for future purpose . I want to know what to say in advance. If I don’t have no money . What should I do ? How can someone like myself with no fund answer a question like that .. are what can I do in this type of situation.

Kyle J. · Answer

@Richard Forbes The reality is, if you're working with an agent and looking at listed properties, you're going to need to have proof of funds or a pre-approval letter from a letter.  If you really have "no money" at all, you're just wasting the agent's time and yours at this point.

Brandon Vukelich · Answer

Yeah @Richard Forbes, how do you expect someone to help you if they don't know you even have the ability to close, whether it's $100k or $1mil?  Are you contacting a residential agent, looking to find a SFR or 2-4 unit?  At least in my area, I can't help someone on the residential side without a pre-approval letter in hand from their lender.  For investors looking at 5+ units, I would need to know where you plan to raise the 25-30% down or if you plan to buy all cash, then I would request proof of funds.  Best wishes on your journey!

Richard Forbes · Answer

@Steve Morris Hey you have a good point there. but @Brandon Vukelich hit the spot. I just was doing something without a plan. Now that Brandon gave me a plan example.

First, I will do is Create a plan and

Next, focus on my plan

Finally, execute my plan.

Thank you Guys !

Account Closed · Answer

No money + No understanding of how to buy with no money = wasting agents time.Sure you may learn a lot about things by "jumping in", but if you are acting like something you aren't (fake it till you make it) you will upset A LOT of peoples time.Figure out how to do what you want before asking others to be part of it, on their dime.

Brandon Vukelich · Answer

@Richard Forbes it depends on your focus.  There are plenty of books, podcasts, forums, etc for just about every aspect of RE investing that you're driven to proceed.  Mine is multifamily so I really liked the book, Crushing it in Apartments & Commercial RE, and Michael Blank's podcast.

Steve Morris · Answer

“ what is your budget?” ..

If I'm a broker and you can afford $1M properties, why would I only send over $25M properties?

I want to know what to say in advance. If I don’t have no money .

Well, as a broker, I'd get your money together.  It won't take long for me to figure you have no money and not to spend a lot of time on you.

Dallon Schultz · Answer

@Richard Forbes I commend you for even taking that step! Most people don't and that is why they remain in the rat race. We've all taken those first steps and learned along the way. It's obvious your mindset is in the right place and you recognize that every opportunity is a learning opportunity. Hell, we're all still learning every day. If you talk to anyone that says they know it all, separate yourself from them. Don't stop asking the questions! That's what will drive you to reach your RE goals.

Richard Forbes · Answer

@Dallon Schultz I honestly appreciate BP for people like you guys . Remember, I said it was an Homework and I am a student right now that’s willing to learn from the teacher “Experts”. Yes, I was wasting someone time but was it worth it. Yes! Because not only did I try ; I actually came out with something to ask and without questions how can you know if your student is learning something. I am a beginner. If I don’t know how to walk . I am going to Crawl then take baby steps. @Jeph R. Your Absolutely right. I am missing a huge big concept on the no money part.

@Brandon Vukelich Thank you as well . Connecting with you guys is a life stepping stone for me . There is a lot to learn. What would you recommend ? Any books , podcast etc.

@Kyle J. Thank you as well.

Dallon Schultz · Answer

@Richard Forbes first I want to congratulate you on catching the RE bug and wanting to take massive action. First and foremost KNOW YOUR CRITERIA. This may take time to hone in as you gain more knowledge and experience. A common theme I notice among many people wanting to get involved in the space (happened to me as well) is that a certain book, podcast, interview etc. would light that fire and they would get inspired and want to jump in but don't quite have the process nailed down and goals set. Speaking from personal experience it took a lot of planning, networking, and educating prior to even considering our first deal. Just be careful that you are not putting the cart before the horse. With the attention RE investing is getting a lot of people want to jump in without having the systems in place. It's very possible that you do because I don't know your current situation but if not then maybe take a step back and create a plan of attack rather than going in guns blazing. Buying properties without your own money CAN be done! That's how we purchased our first two. But it's not easy and you have to have the ability and capability to add value through your sweat equity or another way that adds value to your investor. I'd be happy to answer any questions you may have. Keep grinding!

Doug Pintarch · Answer

If you legitimately have no cash and no approval based on that you are indeed wasting the agents time and should get your money squared away before shopping.  Can you get pre-approved with funds from a family member or partner with someone, then go out looking?

When a Agent ask you what is your budget.?

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