new members

[Stephanie Garcia]

Hello all,

I am a new member. I have been researching real estate since I purchased my first house in 2012 but more recently listening to books since last September. I have a real estate agent I like working with, do I keep the same agent throughout my investment endeavors? I am trying to buy another house or duplex to have as a rental property, am I supposed to contact a normal mortgage lender? I don't have much cash for a down payment. Please advise.

Thank you,

Stephanie Garcia

[Chris Vail]

@Stephanie Garcia

 Hello and Welcome to BP, the first step on a long road to success if you decide to take that road. Now to your questions:

"I have a real estate agent I like working with, do I keep the same agent throughout my investment endeavors?"

@Sergey Tkachev hit the nail right on the head with his post, you might not need to change agents if both you and your agent have the same goals for you. Generally investing offers are many in number and not all agents are willing to put in the work for what an investor is usually trying to do, under pay for an asset compared to the market rate. If your agent is only looking at MLS deals then you should be making multiple offers before one of them is accepted. You will be looking to pay what the numbers say makes sense for you not the seller and rarely on the MLS are those numbers the same. This will generally be lots of work for the agent as they will be putting in lots of offers on your behalf, so just make sure that the agent you choose understands this and will be up to the challenge.

"I am trying to buy another house or duplex to have as a rental property, am I supposed to contact a normal mortgage lender? I don't have much cash for a down payment."

I am answering these together as they are directly related, most "normal" mortgage lenders are going to be looking for 20-25% as a down payment on an investment property.  This sounds like it might be your limiting factor in going the traditional 30 yr mortgage route.  There are many ways to structure a deal that do not involve you putting 20-25% down.  Seller financing is the most prevalent one that comes to mind but there are many more. This is not my wheel house as I have gone the conventional route so far, but there are lots of creative ways to structure your deals so that you can put less money in. I would suggest doing some research in this area if you are going to look to make a move before you have the personal cash on hand to finance it your self.