Off market investor looking into financing options for buyers

Off market investor looking into financing options for buyers

Chicago, IL · Member since 2017 · 10 posts · 2 votes

Hey everyone. I'm off market real estate investor, i buy homes for cheap, do some minor repairs and re sell them to contractors and other investors for a profit. Up to this point, I have been selling my investment properties for cash, these are under $50,000 homes and have been lucky enough to find buyers, sometimes quickly, others not so much. I am picking up pace and would like to offer financing for my buyers, this would help me sell the homes quicker as well as broaden my list of potential buyers.  Since I am not a realtor, where do I begin? I have been in contact with a local mortgage lender that is eager to work with me, my worry at this point is that most of the leads that I send his way are going to end up being wasted/switched onto other homes, since I only have a couple of houses for sale and dozens of people looking to finance. Am I wrong to assume these leads are worth money? what is the industry etiquette? can a mortgage lender "steal" leads? is it a smart move to connect the lender with all of my potential buyers at once or should I send him more if others fail to qualify? As you can probably tell I am pretty green with this aspect of the industry, any help or advice would be appreciated. 

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  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    7y

    @Jorge Leon

    You would have your properties available for sale. If a would-be buyer asks if you offer financing, you would say yes and refer them to the lender that is will to work with you. If the buyer doesn't qualify, it's not a lost lead. If the other people aren't ready to put in an offer and go through your lender, it doesn't really matter.

  • Rental Property Investor · Honolulu, HI · Member since 2018 · 335 posts · 251 votes
    7y

    An idea might be to try and prescreen your buyers, while at the same time letting them know you have a lender who may be able to help them finance. If you can't sell it in a cash sale, then after some pre-screening lock it up under contract, and refer them to your lender after that. 

    Personally, if it was me though, I wouldn't be worried about the lender "stealing" buyers, and would just operate assuming there are enough buyers to go around. And the more that word gets out that you have great deals, and good to work with, AND have a lender in your pocket.... Well the sky is the limit!

  • Dallas, TX · Member since 2018 · 8 posts · 3 votes
    7y

    Jorge - The best idea if you are concerned about the lender potentially taking your clients, I would recommend building relationships with several different lenders. That'll allow you and your clients multiple options in regards to financing. 

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