All Forum Posts by: Maggie L.

Stifel bank - I know several people, including clients (I'm an investor-friendly agent) who use them for that specific reason.  How long were you looking?

@Joshua Baynes glad to hear you're getting more involved in BP! I'm a house hacker myself, as well as an investor-friendly real estate agent in St Louis. We're lucky to live somewhere where there are so many great investment opportunities here, as well as an active REI community. You can find a lot of people here on BP, but I'd also encourage you to check out some of the local meetings if you haven't already. There are great groups, whether you're looking for a large meeting with vendors who cater to the investor community, or informal lunches where you can get some quality one on one time with successful investors in the area. Feel free to PM me if you think I can be helpful.

Have you attended any REI meetings in the locations where you are looking to invest? RE groups are a great way to connect with other investors and investor-friendly agents; often the same people. I'm an investor-friendly agent in St Louis, MO, and I'm constantly recommending various groups here to new clients. Even if you can't attend the regular meetings they often have alternatives like an active list serve or informal lunches where you can meet agents or ask for recommendations from other investors.

@Account Closed glad to hear from someone else who decided to buy while in Grad School at WashU.  When I was in my PhD program I received pre approval from a lender based on the stipend I received from my department; it sounds like you won't have that income source?  Now, when my medical issues forced me to withdraw that pre approval was no longer an option.  Full time isn't necessarily the issue so much as verifiable monthly income.  Your Seattle area lenders may be an option, but only if they also work in Missouri. 

One potential option is to have your parents cosign for a mortgage, if you don't have the income to qualify.  A more challenging option would be lease-to-own, where the seller basically becomes the lender.  Most people aren't interested in the option especially in this busy seller's market, but it is a possibility.

Since I'm guessing you currently rent, you may also qualify for First Time Homebuyer assistance such as the MHDC http://www.mhdc.com/homes/firstplaceloans/index.ht...

 I'm a real estate agent and would be happy to give you a list of lenders to contact here or discuss your options in further detail.  PM me if you think that I could help.

Maggie

Aww, thanks @Avi Garg I really appreciate that.

Welcome @Tim W.. There are lots of great opportunities in the Midwest - I'm an investor-friendly agent and buy and hold investor in St Louis, MO. I'd second the recommendation to connect with local REIA as well as brokers in locations of interest. Personally, I like the opportunities for 2-4 plexes in St Louis, but some of my clients also look at the larger multis. We do have some great local RE groups, some of whom are active online if you'd like contact info.

I will say that commercial (5+ multis) are a very different world than residential (single or 2-4 plexes) when it comes to investing.  Regardless of the type of investing you choose to try first, I'd recommend taking time to contact multiple agents and property managers in all locations of interest.  Also, go out to visit your top locations.  The cost of a plane ticket and hotel is a worthwhile investment, and far less expensive than a bad purchase.  This is a great time to meet those agents in person and have them show you a few potential properties.  There are things that you can really only understand when you see them for yourself.  I send my out of state (or traveling) clients photos and video, but they always comment on how different it is in person.

There are so many different ways to invest in RE; I'd really recommend starting with one area and really getting to know it before digging into the next topic. When I have a new potential client I sit them down and spend an hour or two asking them questions e.g. What level of rehab are you comfortable taking on - even "turnkey" properties will have some deferred maintenance to address. What sort of renters are you hoping to attract e.g. turnover frequency can be impacted by unit as well as location. How do you define risk and what level of risk are you comfortable taking on- this varies a great deal from person to person in my experience. What do you consider a successful investment e.g. paying mortgage in an up and coming neighborhood with good appreciation potential, CAP rate, per door cash flow, etc.

The ones that can answer these questions and have an initial focus on the type of properties they want are the ones I find quickly building a portfolio.  Their methods and criteria may change over time, but they are gaining a depth of knowledge which can be easily applied elsewhere.  The ones who can't give a definite answer "it depends, that all sounds interesting, I don't want to limit my options, etc" are the ones that I find overwhelmed by choice and struggle to move from research to action, if they do at all.

I second the recommendation to look into an investor-centric brokerage. They won't have as much support and training available but costs should be lower too. If you want more support I would still interview at places like Keller Williams just to get the broker''s perspective. When I started at Keller Williams there was another agent with a full time job; he was a fireman so his schedule was a bit unusual. You may also want to look into interviewing for a team rather than becoming a solo agent; your schedule may be a good fit for someone looking for some help. Most buyers also have 9-5 jobs so nights and weekends are the best times to show. If you're definition of part time is 20+ hours per week I wouldn't be surprised if someone was willing to give you a chance.

@Stacey Graham welcome to BP!  I'm an investor-friendly agent (as well as a buy and hold investor) over in St Louis and I run into many clients looking to get started with less than stellar credit.  It can be challenging to find a loan in this situation, but it's important for your long term financial success.  St Louis City actually has free programs to help people improve their financial situation, including credit score, through a partnernship with the nonprofit Operation HOPE http://www.stlofe.org/operation_hope

It might be worth looking into what's available in your area.  If you haven't owned a home in the past 5 year you should qualify for MHDC's cash assistance programs - aka free downpayment - that applies to multi families too http://www.mhdc.com/homes/cal/index.htm

@Jim Proctor welcome to BP!  I have to admit living in St Louis, MO I go for the old historic homes rather than new construction in my portfolio, but I hope you're able to find other likeminded individuals here on the forums.  Have you set up a keyword alerts?  https://www.biggerpockets.com/forums/25/topics/802...

They're a great way to learn and find other likeminded individuals.  Are you thinking SFHs or are you considering multi families, homes designed for elderly or those with accessibility needs, or maybe green living? There are many niches out there that might be helpful to pursue.

Welcome to BP @Derek Adams. As someone who grew up watching the Nightly Business Report with my investor father, I appreciate the stock market analysis approach applied to REI. I have a couple of questions that I ask my new clients (I'm an investor friendly agent in STL) that would influence my recommendations. How do you measure your ROI? I'm a buy and hold investor myself, and to me my rentals are much like stocks back when you got dividends. Are you solely focused on cash flow, or are you also looking for some appreciation? Do you want the ability to force value e.g. make improvements, or are you ok if the property may be difficult to sell if the cash flow is good enough? You've mentioned passive income, so that does mean turnkey rentals possibly with tenants in place? St Louis has many different ways to invest in buy and hold properties, but may require improvements to be made before you start to see that cash flow.

Always happy to chat - feel free to PM if you think I'd be helpful.