All Forum Posts by: Allyssa Compton

Hi @Christopher Phillips thanks for your reply!

While I do know that my brokerage has a list of vendors, it is a pretty vast list and, I suspect, not necessarily one that has been vetted. In this industry, there seems to be a lot of friendly referrals that don't actually translate to deserving business practices. As a new agent, I want to be able to stand out from those who recommend just any old "preferred vendor" and want to be able to vet them myself. Especially considering I specifically work with investors, I want to be confident when recommending someone. 

As far as your thought that buyers already have a lender, I don't find this to be the case; especially when working with investors. They usually have to rely on comparing many different angles and I would like to be able to add to the discussion.

At the very least, I would like to be able to approach a few mortgage brokers and learn more about their side of the business myself. I would definitely encourage you to listen to the particular podcast that I did and see what you think. I always appreciate the feedback I get from everyone on this site. 

Hi @Sherrod Wesley

There is a lot of great information online about the 203k loan and you should definitely look up some state-specific information as each state tends to put their own twists on this. 

A few things to note that I've come across in my experience that you may not find online:

1. You will definitely need to speak to contractors prior to obtaining this loan to be sure that they are willing to work with you on this. They need to be familiar with the 203k process and not underbid as this can compromise the entire loan. Many contractors are unwilling to work with 203k loans because there are a great number of stipulations and a lot of paperwork for them to get paid. 

2. The project must be completed in 6 months. This may vary depending on your situation and you can get extensions but the more you adapt, the more paperwork must be done. 

3. It can be hard to find a lender but when you do find one - be sure that you aren't getting taken advantage of. Just because they are one of the few around who will offer this loan doesn't mean you should pay an extreme amount for it. Yes, the 203k will usually cost 1-2% more than a conventional loan but if you are getting into hard money lending rates, you're getting taken advantage of. 

Look into other options available to you. It may make more sense to do a BRRR strategy with private money, depending on your situation. At the end of the day, do your research, and go for it.

Hello follow agents,

I recently listened to an episode of Super Agents Live that featured Stephanie Weeks who discussed the importance of finding a mortgage broker that you can confidently recommend to your clients. I feel like she had a very valid point and, since I am just starting out as an agent, I now am making plans to go meet with a couple of the "recommended" mortgage brokers in my area to evaluate who I can recommend. 

As someone who has a big focus on working with investors, I want to ensure I am able to gauge who will be most helpful in dealing with unique situations, creative financing, etc. Can you please suggest some key questions that will help me evaluate mortgage brokers? Maybe even some talking points or resources I should look into before going into these meetings? I want to be well prepared and knowledgable to evaluate such a position. 

Thanks!

Hi @Lawrence Perry

Find mentors is one of those things that sounds super easy but in practicality is extremely difficult. It usually isn't enough to find someone in the general space you want to be in. To find a really great mentor, it usually needs to be someone who is already doing exactly what you want to be doing. 

@Ted Lanzaro listed some great ways to meet people and said a very important thing: "Figure out who the most successful investors are and then SEE IF THEY NEED HELP WITH THEIR BUSINESS." When looking for a mentor, you cannot expect that someone is going to take you under their wing and teach you everything they know. It rarely works like that. Usually you need to bring something to the table. So try to find someone who hasn't quite "made it" yet. Find someone who is 80% there and then figure out specific ways that you can help them to get to 100%, however that may be. 

Before looking for a mentor, figure out what you can bring to the table, and then offer it to those you wish to learn from/partner with. It doesn't have to be something that will change their whole world. Find something that you are able to confidently do and approach people with that. Do you have a great camera and love taking photos? Offer some professional photography. Great with English? Offer up your proofreading skills. Know a lot about websites? Suggest you take a look at their keywords to help them optimize their site. A lot of people say they are willing to help out in exchange for xyz.

Hope this helps!

@Derrick Lubomski I hate to be the Real Estate agent on the forum but...finding a great real estate agent would help! You would be surprised how many off market deals Realtors facilitate. And please notice that I said great agent not good agent. A good agent is happy to work with you and will help you find what's on the market - which won't help your case! A great agent is one that works specifically with investors and has a network built that allows him or her to get the inside scoop on these deals. 

Check the listings for multi families in your area and see if there seems to be an agent or company that stands out as having listed a great deal of them. If there is, chances are that person is well known in the REI world. Contact them and let them know exactly what you're looking for and that you've been looking for awhile. If you find that agent, you should be able to give them all your criteria and go from there.

Best of luck!

Hi @Clayton Swansen this is a great question that all newbies go through! I'm no veteran, but here is what I have found when trying to network with "important" people. (Without offering them money!)

1. Offer something of value. It really doesn't help anyone to say "let me know if there is anything I can do to help." People who are in this business appreciate a great trade! Find something that you are able to confidently do and approach people with that. Do you have a great camera and love taking photos? Offer an agent some professional photography. Great with English? Offer up your proofreading skills. Know a lot about websites? Suggest you take a look at their keywords to help them optimize their site. A lot of people say they are willing to help out in exchange for xyz. But being willing to help doesn't really help. 

2. Don't ask someone for an hour of their time. Instead, ask someone if you can ask them three questions. Most busy professionals don't have time to get on the phone and answer questions for an hour. Even if they are the type who wants to pay it forward, that's a big commitment. But if someone says they have just three specific questions for someone, they will usually be granted the time. In my experience, having three questions prepared forces me to ask the most important questions and, as a bonus, the person usually won't cut me off after three questions. Especially if they are good questions.

3. Offer food! Everyone has to eat and people are much more likely to agree to have a meeting with you over burgers as opposed to someone who wants to meet in their office to ask a million questions. 

So, find the important people who you can truly learn from and employ these strategies. It is never a bad thing to say, "I'm new, I'm learning, and I want to learn from you because it seems like you're the best at what you do." 

Hope that helps!

Couldn't agree more with @Christopher Giannino!

@John Lewis First of all, congrats on getting your license!

As far as your question goes, I would also add that you may want to look out for those brokerages who offer flat fee transactions as you will probably end up completely on your own. If there isn't anything in it for others in the brokerage, no one is going to be willing to help you navigate the world of real estate; or your first transaction for that matter! In addition, working with investors can be a tall order since many have expectations that you will be able to, not only help them find a property, but help them evaluate a deal and come up with creative financing as well. As an investor friendly agent, you are essentially acting as a sounding board for many newbies. I would be careful not to brand yourself as such unless you are capable of handling that type of roll! It may be better for you to get some experience dealing with the process of a regular transaction before stepping out into the world of investors. 

Hope that helps!

Hi @Precious Thompson

My question would be, what is your motivation for getting your RE license? If you are doing it for your own investing and having the ability to purchase your own deals, then great! Go for it!

If you are looking into Real Estate as a career move, definitely take a hard look at yourself before taking the plunge. RE agents have a ROUGH job and over 80% leave before the end of their second year. I would suggest you start reading books, speaking to local agents, and gathering as much information as possible to evaluate if it is something you have a passion for and would succeed at. A lot of people think it is quick money and I can assure you, it's not!

For those thinking about doing it for their own deals, I would encourage you to go ahead with it. But first look into the requirements in your state and how much it will cost to hang your license with a brokerage. Sometimes, it's just easier to find a great agent who will work alongside you with your investing.

Hope this helps!

@Jonathan Safa Thanks for the advice! In getting your license, have you only done your own deals or are you also working with clients? If you're working with investors, would you say you've met them as a byproduct of your job, or mostly organically? 

Hi BP Community!

I am currently in the process of getting my RE Salesperson License and have about 3 weeks of classes left. I am trying to learn absolutely everything I can about being successful in this industry. I know it will be super tough with a lot of competition. I'm listening to Podcasts, reading books, trying to network with as many realtors as possible, etc. 

One of the pieces of advice I keep hearing over and over is to find your niche in the market. As someone who wants to ultimately invest in real estate and someone who has had a very difficult time finding a good agent who knows about multi families and investment properties, I want to target my niche as being investment properties. 

My question is this: what can I do either right now (before I get my license) or right away that will help me achieve this goal? What do you investors look for in an agent who helps you find your properties? How can I find investors in my area who I can add to my network? (I'm in Rockland County and there isn't a regular Meetup!)

I already plan to take MLS classes focused on investment properties and various programs for distressed properties. What else can I do to meet investor needs?

Thanks for your help!