"Give me a lever long enough and a fulcrum on which to place it, and I shall move the world."

- Archimedes

Where To Start? 

The first thing I tell my clients after our first consult is to get preapproved. Being able to use other people’s money allows you to leverage your money. Our promise to you at DEALS! Off Market is that we are going to get residential, commercial, and off market deals in your inbox; but you’re going to need to be able to take massive action. This requires you to line up your financials. 

I recommend getting preapproved with a hard money lender in order to be competitive for off market deals and listed deals. Hard money loans have quicker closing time frames, less contingencies, and fewer hoops to jump through than traditional loans. But what are they? Hard money loans are short-term, high-interest loans secured by real estate, often used for quick financing or for properties that don’t qualify for traditional loans. These loans are provided by private investors or companies rather than banks. Keep in mind that most preapprovals last for about 90 days. 

I also recommend looking to get preapproved for a DSCR loan (commercial loan). It’s important to do this if you’re looking to purchase a property long term, but also to make sure you can refinance out of your hard money lender if you’re doing a BRRRR project. What is a BRRRR? Learn from my friend and client David Greene of BiggerPockets:  https://www.youtube.com/watch?v=Wv1nxWErYao

Don’t Waste Professionals’ Time 

Most of the professionals you’re going to work with are paid only on commissions. Your mortgage lender, title professional, realtors, etc. – they only get paid when you buy. If you are asking them to spend their time helping you achieve your goals, that means time away from other clients and their families and friends. Out of respect for them, you should make sure you have the ability to buy. I advise the agents that work with me not to extend too much time or effort on them until proof of funds or a preapproval letter has been provided.  

"Talk does not cook rice."

- Chinese Proverb

Final Thought 

Banks are pretty tight right now with the high interest rate and exposure to volatile commercial investments. I’d first attempt to approach smaller and midsize banks before going to the larger banks for preapproval. Larger banks tend to have the most rigid terms, and they are also typically delayed in getting to the closing table in my experience. Shop around! General contractors will throw out high quotes when they are busy because if a sucker is willing to pay that much, it’ll be worth their time. Don’t get just one quote, don’t be a sucker. Banks love suckers.

Song to Digest With

Succession Finale (slowed+ reverb) 1 Hour 

-Rob Bergeron