All Forum Posts by: Misti DelMar

@Misti DelMar

There's property out there for anyone/everyone. There are properties that you'll be able to go after if you've only got $20k of capital, though you'll need to be able to secure a loan. The biggest thing you want to do at this point is strategize a way to save/make more money to continue your investing journey (the more capital you have to at your disposal, the more options you've got). Just remember, your first property may not be exactly what you're envisioning at the moment. 

Similarly, there's a realtor out there for everyone. Some realtors may only want to work with buyers/sellers of more expensive properties, but there are absolutely realtors who help you even if the property is $60k. Just be clear to any prospective realtor about your game plan.

Eventually, you'll just need to pull the trigger and take some action. Not that it's right, but my thought on real estate is if I'm not taking a step forward, it's actually a step back.

The short answer is YES I personally would love to work with you, and many others like me likely would, too.  There is to me somewhat of a mistaken perception that all realtors want everything to be high end and luxurious.  I've done a lot of business under 100k and I'm ok with that.  Yes, that is going to be more C-class around here, but it is doable is my only point. Here to help anytime if you want to send a message or talk, even if just for fun and something to consider.  I always say, it is an honor to me if someone even considers working with me, and that is something I never want to take for granted.  

@Misti DelMar, I get why it can feel discouraging already.  The market is very hot now, and buyers are seemingly willing to pay anything for a property.  But, as you seem aware, you are already talking yourself out of this journey.

As others noted, you need to define your investment first. Buying anywhere is a fool's errand. You will never get a deal, since your Pensacola, FL agents will be competing with your Cleveland, OH agents, who are competing with your Lubbock, TX agents. Pick a market and focus on that. For single families, it can be just about anywhere, so I recommend you pick somewhere you have ties to. If you are doing STR, then it should have an appeal.

As for actually buying a house, will it be harder than a decade ago?  Yes.  But you can certainly get a property.  But back to what you are looking for, you need to know what your targeted financial metrics are, quality of property and area, age of property, turnkey or rehab, min beds and baths, etc.

There will likely be some agents who won't work with you.  But there will be plenty that do.  As long as you have realistic expectations, I would find it hard to believe an agent would say no.  But, the more you can approach them and say, this is exactly what I am looking for, here is my budget and here is my proof of financials, you should be fine.

Lastly, once you define and area and pick a realtor, or few to start working with, just be respectful of their time.  If a property goes on the market, and you ask them to write an offer $50k below list on day one, that will not get you anywhere.  But the more you know what you want, don't have them running all over town touring properties you will never buy and writing offers that are well below market value, you are fine.  You are a buyer with cash and, presumably, financing available to close.

Hey @Misti DelMar,

I agree with @Jonathan Greene on this. 

First step will be choosing your market based on your preference and financial qualification. 

20-30K can be plenty in some markets and not even close in others so I'd recommend putting together your team of lender and Realtor as you strategize.

A local investor-friendly Realtor can then introduce you to any submarkets, property types and strategies that fit your goals. Furthermore, they can look at statistics (i.e. list price to sell price %, average days on market, absorption rate) to confirm how hot your target areas are. 

Best of luck to you on your journey!

Abel

@Misti DelMar don't offer over asking just for the sake of buying a property. If it's not a deal, then it's not a deal. Your questions are also entirely dependent on which strategy you plan to implement. STRs? LTRs? House hack? Small multifamily? Turnkey? BRRRR? I certainly encourage every investor to have a reserve fund and cash on the side for each investment, but again, don't get trapped in the game of a bidding war. Hope this helps!

I would say you aren't ready if you are saying you are open to buying anywhere. You shouldn't be. You should be deciding where your money is best spent and also where it will benefit you the most. Do you want to be able to touch and see your first investment so you can learn more? You definitely have more than a chance, you just need to figure out what you want and what you can get for your money and if you want that now. Think of it this way, if you rush to get a first investment, but then find out if you just saved for another year, you could have gotten one with higher cash flow and more appreciation, would you wait?

You will most likely need to pay over asking, but you don't need cash on the side unless you are waiving appraisal.

 @Misti DelMar Sorry, just noticed this. My AZ recommendations below:

Northern AZ: Lynne Ordean, Sedona Rentals & Property Managment https://www.sedonarentals.com/

Phoenix AZ: Randy Fitch, https://www.realtor.com/reales...

@Misti DelMar there are many people that you will need to surround yourself with. To ensure success you will definitely want to associate with like-minded people, people with experience and who are already doing what it is you want to do, and people who inspire you… not naysayers, negative people, nor critics.

Besides surrounding yourself with the right people, the two initial and essential members of your professional team will be a lender and a realtor. These two members of your team can make the process great or terrible. They can make a deal happen when it looks like it’s going to fall apart or they can kill a deal that is on track to close. These two team members will help you fill out your team by leveraging their professional networks (inspectors, lawyers, escrow officers, CPA’s, etc).

When it comes to selecting a realtor to work with some may ask you to sign an agreement that you work with them exclusively. This is nice for the agent because it's really frustrating to work with and educate someone for an extended period of time, show them a bunch of properties, and then find out they used another agent to purchase the property. It's not bad to just ask a realtor questions. However, it is courteous if you are going to ask them questions, you let them know you're just educating yourself before you purchase (and if you are speaking with other agents) and to offer to buy them coffee/lunch/a beer. If you like them, and they seem competent, then use them. If you're comfortable signing an exclusive agreement with them then do so. If you do sign such an agreement you can usually terminate the agreement at any time simply by notifying them in writing (email works).

It’s also important to know that they probably won’t show you properties until you are pre-approved. There are a few reasons for this.

First and foremost it protects their time. A buyer who has gone through the process of getting pre-approved is serious about buying and not just kicking tires. The agent probably has a number of other qualified buyers ready to go. Why would they show homes to someone who isn’t yet qualified when they have buyers who are qualified and ready to go look at homes and make offers?

Second, and in the same vein, is to protect their current clients. Imagine this: you have been pre-approved, you tell the agent you want to go look at a property tonight, and they say they can’t because they’re showing another client properties tonight. Now imagine the property you wanted to go see received an offer and that the offer was accepted. How would you feel if the buyer the agent was touring the night before wasn’t ready, willing, and able to purchase (pre-qualified) and you missed out on the property you wanted to see and/or buy?

Lastly, a lot of times SELLERS won’t allow agents to show their properties to buyers who aren’t pre-approved. The reason for this is that the seller doesn’t want to go through the hassle of cleaning a property up, leaving the house, or notifying tenants that there will be someone walking through the house if the buyer isn’t able to buy. It’s just not worth the headache for the seller to go through all of that when there are a lot of pre-qualified buyers out there.

Besides figuring out what your goals are, how you want to get started, and meeting like-minded people, the first action item would be to talk to a lender. In my experience working with house hackers and investors, the majority of the questions center around financing the deal.

When it comes to finding the right lender there are a few things you’ll want to keep in mind. Lenders, like realtors, are not all created equal. In order of importance, here’s what I think is important to look for in a lender. You want to make sure your lender:

• Has worked with house hackers or investors before; the rules change depending on what loan type you use and how many units you purchase. There are A LOT OF TRAPS along the way that can/will make the deal fall through (and cause you to lose your earnest money). You want to be sure the lender you choose has navigated them before.
• Can help you strategize the lending piece for this purchase AND purchases in the future
• Is an investor themselves

Best of luck!