Recently, my boyfriend, known throughout the rest of this article as “the man” decided to try his hand at real estate investing. He had the credit, he had the capital, he even had the respect and investment model provided by a nationally recognized brand, Lifestyles Unlimited, and the support of one of the best and most successful mentors of the program (and social icon), David Fisher. We figured that between my years of real estate, I could assign “the man” to an agent I work with and manage the transaction from the shadows. And while we were successful in closing property number one a week ago, the man is on the hunt for some additional property. So if you know of an agent working with a fledgling investor, here are a few tips to guide you along the way – that will help some fellow fledgling investors too.
1. Property Hunting Is Key
This particular investor was proactive. We set him up with a search based on his mentor’s model so he would receive any updated listings in the area twice a day. As a tech savvy guy, he caught on quickly, and was always on the hunt for property. Yes. Always. Even during what was supposed to be quality time with yours truly. I found myself pulling market analysis reports about 22 times per day. And while I wanted to kill him most days for this, I admit, I was proud of him for being proactive.
2. Know the Contract
As an agent, I overlooked the fact that the man wasn’t familiar with the contract or forms he would need. And, even though I tried to explain it to him on his first submitted offer, he was too busy penning a check with Sponge Bob on it (not kidding) for his earnest money. Later, we went through the contract overall, but I should have done this with him from the beginning. I mean, if I had, I probably would have wanted to kill him a little less when he asked the questions about it that (inevitably) made me roll my eyes and say, “Well, if you had let me explain it to you the first time…”
3. For the Love of God, Understand the Process
There are a million reasons that deals fall through, the market is one (here in San Antonio) that is ripe with multiple offer situations and cash is king every time. So, using the method the man was using, he got beat out on a lot of deals, which in turn, made him into a Grinch some days However, having to explain the basics of the process – and that short sales can be foreclosed on, even if there is an offer on them – was enough to make me want to stab the man a time or to post Grinchy attitude. Yet, I made it through, sans shanking.
4. Expect the Unexpected
In my umpteen years of real estate, I have come to expect the unexpected in every situation. As I coached his agent, and him, like a puppet master in the background of this transaction, I reminded everyone to stay cool, calm and collected and held hands through each stage, ultimately resolving in a successful closing and allowing my boyfriend to live for a little while longer.
And, while transaction number two is currently in the works, I think that the man has learned a lot from this first one, as have I, so I expect plenty more CMA’s in the future, but hopefully, less of a predisposition for murder.
More from this Contributor:
Don’t Go Home Shopping Naked
Are You a Toxic Client?
So You Think You Are a Property Manager?