Taking the Next Step Toward My First Deal

[Sean Daugherty]

I have been reading articles, listening to podcasts, and attending webinars for what seems like forever. I feel I have identified my niche and strategy (buy and hold SFH using BRRR), I've mapped out a plan (secure private money then cash out refinance) , I've analyzed deals, and I'm eager to take action. I've tried to reach out to another investor (hoping he can become my mentor one day), a real estate agent, a banker, and a mortgage broker in hopes of making a connection, furthering my education, and potentially building a network. I've only received one cold shoulder, but the others suggested I get in touch with them in a few weeks or months. The agent suggested I contact him after I've been pre-approved, hinting that I'm not serious enough. The investor suggested I get hooked up with an agent and start analyzing deals. What say you?

I don't plan to use traditional lending for my first deal, but maybe the right bank will have an option I could use. I feel like the people I've talked to that I personally know have directed me to contact someone else. Am I looking in the wrong places? Do I not have my ducks in a row yet? Help my out Bigger Pockets. 

[Matt Lowery]

Congrats on getting ready to take your next step! As a Realtor, I wanted to comment on that side a little for you. Don't take it personally if he's wanting you to have a little more solid funding in place. I'd say if 1 in 20 people who contact me that want to purchase something actually follow through, I'd be fortunate. There are a tremendous amount of people convinced they can make easy money and get a steal that they shampoo the carpets, mow the lawn and make an easy $25,000. Most agents have a filter and flags that help them know when someone is serious or ready. It's never 100% accurate though.

The clients that I have the best relationship with, and the ones that pop into my head when I see a great deal are the ones that understand we are a team and don't just leave me with a broad range that I would spend days sifting through or even worse "I'm just looking for good investment deals."

What you want to be to that agent is the guy in his head that knows what he wants, how he's going to fund it, what he's going to do with it. If I know I have someone who has been looking through the MLS, trims things down to 5 legitimate options (instead of asking me to show them 25 different properties), none of those may fit, but I'm probably more interested in getting to know you and seeing how you react to what we look at so I know the right ones for you as they come up later. Your agent should love working with you and get a rush out of finding you properties to help you accomplish your financial goals. Just remember that they want to be a part of your team, but that doesn't mean they should be doing all the work. Lazy, unmotivated buyers get fired all the time by agents.

For lenders, I strongly encourage you to be talking with smaller banks and especially Credit Unions. Look for someone that has a younger loan officer that has a couple years experience to be competent, but still eager to get your business that may take a little extra work.