Ok - now I am getting ready to go visit few local banks next week to discuss financing. I want to buy and hold. I have some cash reserves and a good paying/stable job.
My question is - when is the best time to share my business plan? Should I do it in the first meeting? Or should I first ask about the programs they have for investors and the criteria they use? This seems like a simple question and I guess as I am getting ready to visit the first bank I am starting to second guess myself.
I do have my business plan, financial analysis, goals ready to share. I even got a nice binder where I can put the information… :O)
What do you think?
Are you ready to buy your first property now? Do you have an offer on something?
If not, my gut feeling would be to wait. I’m thinking that banks are going to be nervous to commit to any future plan right now due to the continuing bad news in the banking world.
What they could offer you today may be different next week. Everyone is going to be battening down their hatches.
There may be more good deals later. Cash will be king as I think loans are going to be harder to get.
Let us know how it goes. You are making a lot of progress.
Show them your business plan. They can tell you what their requirements are and what you need to do in order to get the financing you need. They don’t have to commit to anything. I think its a good idea to have your financing options lined up so you can act quickly if you need to. At the very least, you’ll walk away knowing what you need to next.
Furnishedowner - no. I haven’t found a good deal yet. However I thought I would need to line up financing before submitting an offer. At least to help me calculate the offer price. If I can get financing at 7% I can pay more for a property than if I get financing at 8%.
Furnishedowner/phlemboy - you both raise a good point that I should not be looking for commitment in the first visit. Only a general idea of the conditions. I do understand that those coditions may change. But at least they will give me an idea of what I can get.
jdias, there may be more issues than just the interest rates. It may be different if the loan is for a business. The key is to tell them exactly what your plans are. Your business plan will define that. I’m in the same boat (almost). I’m working on building up personal and business reserves. At the same time I’m developing a business plan. I have a RE agent that has personally invested in rental properties.
You are doing a lot of good work. It’s fun to follow your posts. Keep it up!
Real estate new people: This guy is just getting it done. Step by step. Do what he does.