You’ve heard it before: It’s not what you know, it’s who you know.
And when it comes to foreclosure investing, that is particularly true. Who you know can really help you get killer deals.
So what you have to do if you are to succeed in any kind of real estate investing is develop some contacts. As follows:
** Contact 1: Mortgage Reporting Service
You need a place where you can pull credit reports online and get an account set up before you buy your first property. Make sure you ask for residential qualifiers for a landlord. Factual Data is a good mortgage reporting service. Look them up on the Internet and get all the details.
** Contact 2: Realtor
The right real estate agent is like a pot of gold. These are the qualities you should look for when choosing one:
1. You need a real estate agent who is an expert in the city you want to target. He or she should be able to give you up-to-the-minute listings and provide you with a pretty accurate property value.
2. Make sure your real estate agent has a working knowledge of distressed properties, foreclosures, repo properties and properties listed by HUD. The last thing you want is an agent who specializes in $500,000 properties, because he or she won’t be of much help to you. Clear that matter up with them the first thing.
3. Also, make sure your real estate agent is someone you can get along with, someone you feel comfortable dealing with. In this case, first impressions really do mean a lot. Don’t put up with Realtors who set themselves above you or are condescending toward you. Many of them won’t talk to you unless you’re pre-approved for a loan or can show them you can buy the property you are asking about. If you’re not pre-approved, just tell them you have the financing arranged and you’re just looking to find a Realtor to work with long-term.
4. Finally, make sure you have every possible way to get in touch with your agent. Nothing is more frustrating than not being able to reach him when you really need him. In this age of instant communication this shouldn’t be a problem, but nail it down nonetheless.
There is a website called INeedAGoodRealtor.net that can help you find a qualified Realtor in your area.
** Contact 3: Appraiser
Here are the guidelines for finding appraisers:
1. He or she must be approved with most lending institutions. This will save you from pulling your hair out when getting an appraisal and spending $300 just to find out you need a new one because he wasn’t approved with that particular lender. Believe me, it’s much easier to find a new appraiser than a new lender.
2. Your appraiser should be friendly and easy to talk to. You’ll find that some appraisers won’t give you the time of day. Let me stress again how important it is to have good communication with your appraiser, because he or she is the best source to tell you whether a deal is good or bad.