OfflineHello, everyone! 2nd time on Dean's sight and 1st time in here. Today is the 1st time I even talked about buying a property and renting it. Not just to help myself but to help someone close to me to finally have a place to live with three babies and not have to worry about not having a place to live. We all just need a break in life and I think that Dean's program is finally going to make it happen. Some of you must know exactly how I feel. I was already told by a broker that "they" couldn't qualify someone for such a small loan. Later I was told that the reason why some brokers won't do this is because all the "cash buyer" are eating them up. I started laughing because the timing is impeccable. The "cash buyer" is going to be me with Dean's help and of-course, all of yours. I am sure and have great faith that someone will help me with this one. I am in Ontario, CA. but the property I am interested in is in Lancaster, CA. Only problem is that the house is selling by a real estate agent. Should I just go find another one FSBO. I really like this one. I greatly appreciate everyone's time and effort.
My first attempt at a property for rent
Posted on: Tue, 08/18/2009 - 05:58
Since the economic meltdown began and the credit crunch ensued 80% of all Brokers have gone out of business, but not because cash buyers are eating them up, but because of the ridiculous guidelines imposed on us by Freddie & Fannie. The big banks are forcing the brokers out---they want total control of the market. Of course the cash buyers like you and me hasn't helped.
No problem, the real estate agent will be paid by the seller. If the property is a good deal and meet all your investment criteria why not purchase it. If you like it and are comfortable buying it, then I would.
Hope this helps, welcome and best regards.
southstar
KNOWLEDGE FUELED BY EMOTION EQUALS ACTION, BUT IT IS ACTION THAT ENSURES RESULTS.
If the cash buyers are eating up all those cheap properties---more power to them. The Brokers won't do those loans because their investors or lenders won't let them---no money to be made off of them. I buy mostly under $25K and for cash. If I do use a lender I have a great portfolio lender who will let me bundle properties together into a blanket loan in my business name which makes it a commercial loan. I have a good Broker friend in Indianapolis, where I hold investment properties, and he won't touch a loan under $150K---again his investors won't let him.
At this juncture of your investing career, you should begin working on developing a solid working relationship with a portfolio lender in your area. It's good to have all avenues to funding available, because sooner or later you might not be able to make a cash purchase. I use my own cash, private money sources mainly 401K's, CD, or savings, and also portfolio lenders.
If you have an opportunity go over to the "Real Estate Forums" section, and click on the Financing and Credit forum. Page down to the post on "Banks the smaller the better" by Kingdom Property, this is a good beginning thread on portfolio lenders and how to attract them. I put a lenghty post there outlining how to find them, and what you need to do in order to get them to fund your deals. These guys make their own rules, and if you want to play---bring them a good deal.
If you're like me and like to make your own rules, have control over you own life, and guide your destiny, then you have picked a good place to start, and the portfolio lenders will assist you.
Best wishes,
southstar
KNOWLEDGE FUELED BY EMOTION EQUALS ACTION, BUT IT IS ACTION THAT ENSURES RESULTS.