Should I trust my new investor/agent in finding the next deal?

[Daine Johnson]

So my buyers agent who helped me with my first home purchase in August was my Aunt. I found the deal off market as a for sale by owner, she helped a ton and only charged 1% to help me out. After learning so much from BP and still doing so, I’ve realized that she is not the best fit for me as she does not have the views or knowledge of an investor. I recently met an investor/agent who owns 7 buy and hold properties in my local area, who is very passionate about real estate. I asked him many tough questions which he answered very well, and I have decided to use him as my agent in finding my next deal. My question today is, should I trust him whole heartedly without question? I work a W2 job with a great schedule making 40k/year. My lender said I qualify for a conventional loan of 125,000 at 5% down. She said at 160,000 I would need 15% down. After speaking with the new agent he is telling me I need to find a way to get 200,000 to compete and get a great deal in our area. Should I come out of pocket to cover the large down payment I will have? I only have 40k saved and feel like this may be a bold move for only the second property. I am done with the renovations of this first house and I’m currently living here, I need another home to move into soon so I can rent this one out.