Do You Want To Find More Houses? - by A.J. Funaro

Would you like to find an unending stream of properties on which you can make profit-making offers? Would your rehab business benefit if you had a steady stream of properties that were being handed to you on a silver platter? If the answer is "yes", then I have a proposal for you. That proposal is to "Establish Relationships". Let me explain.

In the ten-year history of our company, we have seen the long-term benefits of establishing and maintaining relationships and doing repeat business with the same people. We deal with people we know and who know us, while always focusing on what we can provide to these individuals.

In a nutshell, we've become experts in establishing relationships and providing quality service. This is a universal business principle and is certainly applicable to real estate investing.

So if you are a real estate investor, with whom do you establish relationships and how can this help you find more properties?

To start, you should have strong relationships with Selling Agents (i.e. real estate agents, REO departments, etc.) and a strong relationship with a Lender. Your goal should be to establish and enhance your CREDIBILITY.

You need to demonstrate to selling agents that you are real and that you can close QUICKLY. Real estate agents want both sides of the commission and prefer to call one of their "go-to" investors first, often before listing a property.

If you're a newcomer to this business, it's vital that you distinguish yourself from the hundreds of other so-called "investors" who bombard these selling agents every day with requests to buy properties, but who do not have the financial backing. You want to be on the "short list" of real players. The market needs to know that you can close without financing contingencies in two weeks or less.

That's where a relationship with a lender comes in. In my opinion, you need to have your capital lined up BEFORE you start making offers and BEFORE you attempt to cultivate relationships with selling agents. As a national rehab lender, many of our borrowers have figured out that one of the best ways to find properties is to first establish a credit facility with a quality lender and then use "Proof of Funds Letters" to establish credibility with selling agents. At Brookview, it's standard procedure for us to issue Proof of Funds letters to each of our approved borrowers.

Consider preparing a brief promotional package on your company, discussing your accomplishments and your anticipated purchases. The whole idea is that you want to convince these selling agents that you are real so they will refer you houses.

In short, cultivate relationships with real estate agents and other selling agents by proving that you are a credible investor and can close. Finding a lender who is "relationship" focused and is willing to provide you with a credit facility and proof of funds letters will significantly help. As the saying goes, "Once you have money, the deals will come".

In future articles I will address
1) why the "relationship" concept of lending has largely evaporated in today's mortgage market,
2) why there has been an erosion of TRUST between lenders and borrowers, and
3) why it is extremely challenging for investors to develop true relationships with lenders.

I will also discuss what has happened in today's financial markets and what alternatives are available to investors, so stay tuned.

+++++++++++++++++++++++ A.J. Funaro is CEO and founder of Brookview Financial, Inc., a National Rehab Lender. Brookview was established in 1992 and their web site is http://www.brookviewfinancial.com. Mr. Funaro has held a career on Wall Street, a CPA, is a summa cum laude graduate of Boston College and holds an M.B.A. from Columbia University.

Comments on this article can be sent to rehab@brookviewfinancial.com.