Find a mortgage broker who is NOT an investor. A person who has a part time job as a mortgage broker isn’t always in the trenches and up to date on the latest happenings in the market. Use a professional, full time mortgage person. You will be much happier with their results.
The Burger king guy shows up with no helpers, but with two huge bags of sausage biscuits–we had to fend for ourselves to get coffee. He came by himself, because he had no assistants or site selectors working for him. He covered his seven states all by himself. He selected every site, wrote every contract, and did all the research himself. He had no big research facility and he didn’t pay much attention to demographics. Although his talk took about 45 minutes, it boiled down to this, “I go into Greenville, South Carolina, and look around for McDonalds. Then, I’d buy whatever is closest to them.” That was 15 years ago, but that is still their strategy today. They go and look for McDonald’s.
Our third challenge make sure you have a clear plan for making money with your subject-to acquisition. This is an area that many new investors fail to plan. Are you going to rent out the property to cover the mortgage payments while you gain equity? Are you going to sell the property through a lease to own option? Are you planning to list the property for sale, and just wait for the right buyer, while you make the monthly payments out of pocket? While all of these are potential ways will make a profit, unless you’ve planned your profit making, you may overpay for a property, resulting in a loss. Plan your money-making strategy in advance, and you can make a wise buying decision.