Real estate financing isn’t a straight line.
I’m Michael Dominguez with the Doors to Wealth Real Estate Group. A continuation of the last video is how would I handle a newbie investor that can’t qualify for real estate financing versus one that doesn’t have the ability to qualify for real estate financing, either without the downpayment or without the ability to qualify for a mortgage.
It is easier if you qualify for real estate financing.
If I meet a newbie that actually has the ability to qualify, that obviously sets you up in a better position. As I mentioned before, teaching them the market fundamentals, teaching them that this makes a lot of sense, going through the financials, is really what I’d be focusing on. In my region, I take them out on investor tours. Even if in your community you can’t find an agent that’s going to take you out on a normal tour, even solo you can see three, four, seven properties at one time, and you get to compare and contrast them.
In our market, we have the ability of taking people out and doing group tours, so that you could talk with other investors at the same time. That’s the advice I’d offer to that person. Once they build that comfort level, and they see other people are taking action, you have more confidence level to move forward on your own.
What if you don’t qualify for real estate financing?
If you don’t have the ability to qualify for financing, and there’s a lot of people that don’t, whether they just simply can’t get the mortgage or they don’t have the money for the downpayment. That doesn’t mean you can’t move forward in real estate. What I recommend for those people is they need to become known as market experts. It’s a lot harder to be a market expert if you don’t actually have a property.
Figuring a way of joint-venturing with somebody who knows what they’re doing, even if you’re only getting just a small percentage of that deal, is a great way to start. Once you start building that network and a group, and you become known as the resident expert– That can be even in your own local community, people might think, “He’s the guy who goes to all the investment groups.”
Then, you could start finding people that are in your community that can partner with you and are willing to get the downpayment money for you and potentially do all of the qualification. You just simply do all the renovations. You’ve got yourself a legal to your dwelling, and you can move forward. Thank you.