Ready to invest in property.

[Richard Moore]

I'm ready to start a new career investing in real estate. The problem i'm running into is finding a Lender that's willing to work with a new investor. The real estate agents iv'e talked to will not go forward without a lender. According to them, without a lender I can't view the property. I have a licensed contractor, and i'm ready to start my career as  a real estate investor. Is there something i'm doing wrong or steps i'm missing? Please help

[Marcus Auerbach]

@Richard Moore the correct sequence is the following:

1.) Find an agent who understands investing (most don't and have no incentive to learn ***)

2.) Find a lender: simple - the agent who knows investing knows lenders who work with investors

3.) Find a taregt area for your investment - discuss your goals with your agent and develop a strategy

4.) do plenty of drive by's so you know the area and schedule showings with your agent

5.) your investor agent will know contractors, property managers and other ressources you need

As for the pre-approval: it's in your own best interest to have financing lined up and ready to go before you look at properties. Good investment deals are gone within 24 hours. There are many investores looking for deals. I often write offers before I even have time to see the property, so you need to have your pre-approval letter or proof of cash funds ready to go. If your agent does not have that discussion with you, find a new agent.

***) Why there are so few investor friendly agents. It was shockingly hard for me to find an agent who understands investing when I started out. In fact I coudn't find one and made it through my first transactions with a regular residential agent, who was super nice, but had no idea about investing. You want to work with an agent who is also an active investor and therefore knows how the game works. 

Here are a few insights: agents get paid based on comission. Investors like cheap fixer properties and they like to look at many and then make many offers that often get rejected. So, it's a lot of work for very little money. Much easier to find a nice $500.000 home for a family than a smoking hot deal for $50.000 - and make TEN times more in comission. Median price in Milwaukee is about $225k. So why would any good agent want to spend his time with an investor? Would you?? Note: investor friendly agents like agent friendly investors.