All Forum Posts by: Nicole Dunbar

@Duane - I had the exact same experience on a duplex last summer. Well-priced, 120+ days on mls, and good area, but hadn't finalized my funding. It's a painful, but important lesson many of us have to learn, it seems! Sounds like you've learned it :-)

Hang in there!

PS - Fidelity Bank had some decent loan products in GA, as did a small outfit called Movement mortgage. It may be worth checking them out when you are ready. Also, if you're a 1st time buyer, the Fannie Mae homepath program lets you pick up a reo that you owner occupy, plus there's a 2 week wait period before non-owner occupying investors can bid. There's a down payment grant you can get if you take an online class. I think there's a homeready mortgage as well that may be worth looking into. 

Hey there Duane,

I feel your pain...shopping for my 1st deal in a hot market right now, and every second that you delay due to financing, knowledge gaps, or not having the right realtor could mean a deal lost.  (and I've lost a few myself already).  But, honestly, even though it hasn't been fun - it's been an incredible learning opportunity.  And I can guarantee I won't make the same mistakes twice! 

Do you have any sort of funding in hand at all?  Mortgage Pre-qual/pre-approval? Proof of Funds letter?  Line of Credit? etc? You don't mention it...

Here's what's helping me now; I'm sure other BP members will give more tips:

1. Figure out your financing *first* (and consider having a plan B funding source as well).  If you're doing a mortgage, get at least pre-qualified and work to get pre-approved asap. That way, you're $ is in order, the seller takes you seriously, and you have a fighting chance. If you're doing private $/hard $, contact the lenders, and get a proof of funds.  When the market is hot, and you're looking at 2-4 units, you could be going up against more seasoned investors ready to do all cash, with more experience, and better market knowledge than you.  Get the $ together ASAP and have the letter to show it if you want a fighting chance.

2. Figure out if there's any 'seasonal patterns' that you can work in your favor.  In my particular market, I'm realizing that this particular summer may have been the absolute worst time for me to look using the MLS only.  *EVERYONE* was doing the same thing = bidding wars. You may see a shift in the market after the Fall officially sets in.

3. Consider trying to find off MLS deals. I've started doing that now, and it's been promising so far...there was *way* too much frenzy in my market, and 90% of what what on the MLS was trash, overpriced trash, and overpriced awesome properties that won't cash flow if you pay anywhere near the asking price. Even when it hasn't worked, for me, dealing with the owner directly (at least to start) has actually been pretty refreshing. And usually, they're just talking to me - not me and 20 other investors.

Each one of these topics is covered pretty extensively all over BP (and more), but these are the ones that I wish I really understood earlier.  Good luck!  :)

Interesting indeed!  I am a newer investor in the same market, and I am also interested in smaller apartment buildings and multi family properties.  I will be watching how things develop for you.  Good luck!