Military Investing

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Erik Browning
  • Lender
  • CA AZ TX
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Using a VA loan, there's a good chance your RE agent hates it

Erik Browning
  • Lender
  • CA AZ TX
Posted Jun 28 2022, 21:51

This is how the conversation goes:

Me - We deal with quite a bit of VA loans and help both active duty and the veteran community get into homes

Agent - Ugh, sorry to hear that

Me - What do you mean? 

Agent - Oh no one likes the VA loan, you have to make sure there aren't pests in the home. You have to schedule an inspection (OH NO!!). No one likes when you have to get a contractor in to get rid of the termites and repair anything.

Me - Interesting. So buyers/investors should buy homes with active pest infestations in them? How about you - how about we get your home infested with termites? 

Agent - Well, um, they only put 0% down to buy a home.

Me - Are the offers they're making the same amount as another conventional loan offer?

Agent - Well, yeah. They're identical most of the time.

Me - Then does it matter that it's 0% down if it's the exact same amount? The seller gets exactly the same amount of $$ I personally comb through every document the investor/buyer sends me. They are rock solid before I issue a preapproval and the loan will absolutely go through. It sounds to me like you are lazy and bad at your job. You probably want to remove every single contingency also and leave your investor/buyer out to dry in the event of a major discovery?

Agent - Well how else am I supposed to win a deal?

Me - Appeal to both the seller and the seller's agent? Find out the root cause for the departure of the seller? Get creative? It sounds like I'm doing your job now. Great to see you represent buyer and investors this way - especially the military folks. It really is a tragedy that you have to order a pest inspection and use a handful of sales techniques to get a buyer into into a home.

Agent - Thanks for understanding. I have to get back to my Lexus that I love more than my children.

Riverside, California

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Sergey A. Petrov
  • Real Estate Consultant
  • Seattle, WA
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Sergey A. Petrov
  • Real Estate Consultant
  • Seattle, WA
Replied Jun 28 2022, 23:39

It is very unfortunate that there are in fact many brokers that lack professionalism and bring a negative connotation to the industry. I say expand your network! There are lots of professionals in the industry!

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Robert Reynolds
  • Real Estate Agent
  • Los Angeles, CA
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Robert Reynolds
  • Real Estate Agent
  • Los Angeles, CA
Replied Jun 29 2022, 00:14

@Erik Browning , first of all thank you for your service. Second of all that is horrible that an agent would treat a buyer trying to use a VA loan. I have several clients that have a VA loan at their disposal and their is no better loan product in my mind. You get the best rates, pay no PMI and their are several other benefits. I love your response to the agent, and hope you found yourself another one. I recommend using BP's agent finder and get yourself a new one.

Real Estate Agent California (#02166235)

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Kevin Woodard
  • Lender
  • Nationwide
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Kevin Woodard
  • Lender
  • Nationwide
Replied Jun 29 2022, 04:08

@Erik Browning Some folks just lack the B in JJ DID TIE BUCKLE, among other characteristics lol. I would make a mental note and keep pressing, they’ll recognize their ways don’t work.


S/F

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Joe Funari
  • Real Estate Agent
  • Keller, TX
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Joe Funari
  • Real Estate Agent
  • Keller, TX
Replied Jun 29 2022, 09:24

@Erik Browning I am a fellow veteran. I work with many other fellow veterans to secure their primary residences with a VA Loan Guarantee. Yes, though it is true that VA Loan Guarantee buyers will need to submit more offers than conventional to get one accepted. But I am very clear to my clients up front that it is a long process and they will need to be patient and put out many offers. In some cases multiple offers each weekend before one is accepted. But this is no different that working with other investors to purchase investment properties. You just need to find an agent that is a fellow veteran. We get the VA and understand it downside. But can argue with the other party that the VA guarantee was well earned.....

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Erik Browning
  • Lender
  • CA AZ TX
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Erik Browning
  • Lender
  • CA AZ TX
Replied Jun 29 2022, 10:25

@Kevin Woodard lol at the JJ DID TIE BUCKLE. Haven't heard that in years. 

We have to find agent partners that understand how to negotiate for active duty/vets and understand how to persuade sellers. They are out there, just the old guard seems to keep the antiquated way of thinking.

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Kevin Woodard
  • Lender
  • Nationwide
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Kevin Woodard
  • Lender
  • Nationwide
Replied Jun 29 2022, 12:24

@Erik Browning One of my Marines, and now good friend, is starting his realtor Skillbridge. He’s looking to work under a former Marine that works for Compass. Both are in San Diego. I’ll gladly put you all in contact. 

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Johnny Quilenderino
  • Real Estate Agent
  • Annandale, VA
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Johnny Quilenderino
  • Real Estate Agent
  • Annandale, VA
Replied Jun 30 2022, 14:22

So unfortunately that agent is shortsided. As a Veteran and Agent. I have not only won deals in a hot market, one deal was for my wife, but I love taking on clients with VA loans. Pest insepctions, appraisals just ensure the purchase is valid.

Things that I use to win.

Appraisal Gap coverage
Waive the home inspection, just execute the VA appraisal and pest inspection.
Pre-inspection to see the uglies before we put an offer in. 

Now that the DC are market is slowing down, my buyers are winning easily with a VA loan. 

As a person, you should be interviewing the agent as the agent is truly interviewing you. Honestly, I think the agent just did not want to deal with a VA loan. 

Good luck in CA, I am a Monterey kid at heart ... stuck in DC .... haha

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Mark Frattini
  • Real Estate Agent
  • San Diego, CA
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Mark Frattini
  • Real Estate Agent
  • San Diego, CA
Replied Jul 1 2022, 13:39

@Erik Browning

San Diego has a huge military presence and VA loans are very common. The key here is working with a lender and an agent who has experience with VA loans. If the listing agent is not comfortable with accepting a VA offer it opens up a teaching moment. A great lender will always reach out and educate that agent as well. A VA loan is one of the best loan products out there and anyone who qualifies should take advantage of it!

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Erik Browning
  • Lender
  • CA AZ TX
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Erik Browning
  • Lender
  • CA AZ TX
Replied Jul 1 2022, 14:55

Could not agree more @Mark Frattini. I used mine in San Diego back in 2008, which started off my investing career. Thanks for sharing.

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Scott Mac
  • Austin, TX
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Scott Mac
  • Austin, TX
Replied Jul 1 2022, 15:12

If they don't like it--they weren't sitting over there in Al-Fallujah or Kandahar with giant spiders, eating sand filled burritos for breakfast.

Too bad for them. They need to do their job, and leave the attitude on the sidlines.

9/11 was no joke.


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Replied Jul 2 2022, 18:33

@Erik Browning Hey Erik I am sorry that you have had such negative experiences with agents and VA loans. I know some people prior to the market shifting were not and continue to not be professional. There is absolutely nothing wrong with a VA Loan and the requirements for the property are not very different from that of an FHA loan. I hope you find an agent that is able to make you and and sellers feel comfortable enough to realize that. With interest rates rising and the market shifting to more in the buyers favor it may be prime for a VA loan buyer.

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Kevin Taylor
  • Rental Property Investor
  • Derwood, MD
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Kevin Taylor
  • Rental Property Investor
  • Derwood, MD
Replied Jul 8 2022, 15:01

You should send that agent this pdf that explains the VA loan and why it's often times better than a conventional loan.

For the realtors here I recommend joining VettedVA For Professionals. It provides a depth of knowledge into the VA loan.

https://www.facebook.com/group...

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William Manning
  • Investor
  • North Augusta SC
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William Manning
  • Investor
  • North Augusta SC
Replied Jul 8 2022, 15:32
Quote from @Kevin Woodard:

@Erik Browning Some folks just lack the B in JJ DID TIE BUCKLE, among other characteristics lol. I would make a mental note and keep pressing, they’ll recognize their ways don’t work.


S/F


 Rah