Originally posted by @Account Closed:
(my comments are below in bold)Thank you so much for sharing this.
I too am looking in that area, from afar. However, during my building my team phase, I continued to meet people that said, "If your not in any rush, you may want to wait until the moratorium is lifted." So I have, and now it's extended and prices continue to rise.
I can understand the reasoning behind waiting, but I feel like if you do your due diligence on the front end, you hopefully won't have a problem on the back end. Of course, there is always a chance and that is why we all have to decide how much of a calculated risk we are willing to take. One of the things I liked about the Fayetteville market is that I can afford the mortgage payments on my own if that worst case scenario arises. However, I have a good reserve fund to protect me from that scenario. And, there is always cash for keys which could be done during the moratorium. Things have definitely gone up both in rates and pricing. I was fortunate that I got started when I did.
I am interested in the area because of the military base also. I am a government employee civilian, and like the idea of knowing that if something didn't pan out I could always move into the house myself. My two main issues now seem to be:
1. Not knowing the neighborhoods. I am looking in a similar price range but zillow keeps pointing me to some bad spots. I run the numbers, send it to the property manager/realtor that I have been speaking with, just to be told it's not an area they service, or that property is already under contract.
I don't want to take you away from your realtor if you are happy with their services, but if you need a good recommendation, send me a message and I'll give you the contact info for my agent. One of the first things I asked him for was a map of the area with markings for the good and bad areas. He provided me with what I think was an invaluable tool. Of course, nothing is black and white, but it did create a guide for me. My first filter was to look at where it was on the map. If it didn't fit in one of the areas he suggested, I usually didn't move forward. I think this saved me time as well as my agent and my PM because it allowed me to only run numbers and ask them about properties with potential. Of course, there was still a few duds that made it through, but not nearly as many as I think would have if I didn't have this tool.
2. Not knowing when to get pre-qualified with a lender, and which lender? I am having a hard time finding a lender that would do investment properties. So do I just blindly start calling lenders in the area and roll the dice, or do you have any recommendations.
I would say that getting prequalified is the FIRST step for sure. You don't want to find a great deal and have to make an offer contingent on financing that you aren't sure you can get. One of the first things the seller requested in my last deal was a prequal letter and proof of funds for the down payment. I don't believe he would have chosen my offer if I didn't have these things readily available. Feel free to send me a message and I will share my lender's contact info. She has been amazing! As I mentioned, she helped me with all 3 financing and she works with other investors as well. My investor friend is the one that referred me to her. Beyond that, my advice is to call the smaller, local banks and credit unions first. Find out what they can offer you and be prepared to open an account with them to be able to use their loan services. I opened my real estate account with First Citizens because they have a great product for loans under $50,000 which is my current lenders cut off. First Citizens is only in SC and NC so they are a fairly small local bank. I can share that contact as well.
While I am not really in a rush, I want to position myself to be ready to pull the trigger when I find the right deal.
So again, thank you for your post. It was exactly what I needed to hear this morning, and any further advice would be appreciated.
Send me a message and I'm happy to help anyway that I can!
