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First Time Home Buyer/First Time Investor

By
Real Estate Agent with Realty One Group Mountain Desert AZDRE# SA582422000

Early this evening, I got a call from a young man looking to begin investing in real estate, but unsure of where to start.  After a few questions, it was apparent that he really was at the very beginning of his journey, and was reaching out for some guidance.  What resulted was the most rewarding conversation I've had with a prospective first-time buyer in a l-o-o-n-g time.  I won't make a penny from this phone call, but that isn't the point.

Turns out, this young man is 19 years old, going to school in an area of the country hit extremely hard by the implosion of the real estate market, raw & inexperienced in purchasing real estate - but careful with his money & eager to learn. He has heard about predatory lending and "0 Down, EZ Qualify" scams.

His goal is to purchase a duplex, triplex or fourplex, live in one unit and rent the others to help him pay for the investment.  Good idea.  He spoke about his lack of knowledge as a challenge to be solved by consulting with professionals who would take the time to explain the process along the way & guide him to a smart decision "because I don't want to be a foreclosure victim, I want to start building my nest egg now, since prices are so low."  Great idea.

We spoke about the pros & cons of investment property:  what can happen when a tenant moves out unexpectedly - or doesn't pay the rent on time.  Landlord responsibilities, maintenance issues, taxes, insurance and fair housing laws, cash flow & reserves, the reality vs the hype of short sales, factors involved in choosing an area to start looking, vacancy rates and much, much more.

As the conversation went on, I suggested he take advantage of some seminars and classes put on by the Association of Mortgage Brokers and the REALTOR® Association in order to have a clearer basis of understanding concerning the process and procedures in buying real property.  Since I was by my computer, I looked up the contact information for these associations in his area and gave him the websites.  Oh, did I mention that he lives nearly 1,000 miles away from Tucson?  This young first-time homebuyer has never seen Southern Arizona, except for in movies & photos.  He won't be buying in Tucson, either.

At the beginning of this phone call, my inquisitive young caller asked if I could spare 10 minutes of my time - we talked for just over 45 minutes.

In the first few minutes of the call, I already knew that this buyer was not interested in my market - but he was reaching out to me to help get him pointed in the right direction.  Whether it was something I had written on my blog, posted on Facebook, Twitter, YouTube or somewhere else that caused him to ask me - or some random quirk of keywords on Google...it doesn't matter.  He is the public, took the time to call me, and had realistic, rational goals in mind.

After hanging up with him, I felt a certain fulfillment - a feeling of living up to the vows I took to become a REALTOR®.  It isn't all about the money or the deal.  There is a service commitment implied in that oath.  Sometimes all it takes is a conversation and some frank discussion.  This was the best phone call I've had in a long time.

Thank you, Abraham, you made my day
I wish you success and happiness in all of your goals...and yes, I WILL buy you lunch near the University of Arizona if you ever visit Tucson so that we can dine in the presence of "all those HOT Arizona girls!"  (Now it is in writing - verbals don't count as a contract)

Being a REALTOR® has its moments, and this is one of them.

 

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Comments(9)

Lori Liveston
Virtual Homes, Real Estate - Waltham, MA

This is a great way to end my night!  Living up to your banner "Real Estate is about people."  The satisfaction we can get from helping someone is what makes this job so worth it. 

Jun 23, 2010 06:13 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Kent, I always feel good after one of those calls as well. I look at it like role-playing … which I did in my early days as an agent. It keeps us fresh and on our game.

Jun 23, 2010 06:13 PM
Kent Simpson
Realty One Group Mountain Desert - Tucson, AZ
Real Estate Is About People

Lori - it was a great way to end mine too!  You're so right about the satisfaction - Thanks for dropping by.

Kathleen - looking at the perspective of a first-time buyer always helps refresh the game.  I feel like a "Papa Bear" looking out for my cubs!

Jun 23, 2010 06:19 PM
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

I mentored an young investor and he purchased over 9 properties with me.

Jun 23, 2010 06:25 PM
Charles Edwards Bentonville
Coldwell Banker Harris McHaney & Faucette 479-253-3796 - Bentonville, AR
AR REALTOR, Bentonville Real Estate Agent and Broker

Excellent. I might not be so sure that there will not be a paycheck for you from this conversation. You've done some good sowing, and I'll bet at some point you'll do some good reaping. Sounds like you made a lasting impression.

Jun 24, 2010 12:09 AM
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049

One of the wonderful things about a Realtor is helping educate.  It's a great feeling!

Jun 24, 2010 01:29 AM
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy and evening to ya Kent

It sure does always feel mighty fine to help other folks. Thats for sure!!! And you sure are right, about its not all about the money my friend. By the way, its mighty good to see ya.

Have a good one
Dale

Jun 24, 2010 04:35 PM
Kent Simpson
Realty One Group Mountain Desert - Tucson, AZ
Real Estate Is About People

Mark - good for you!  I haven't had anyone purchase that many properties from me...yet.

Charles - who knows?  Stranger things have happened (I won't get into the coffee coming out of my nose incident that turned into a sale).

Kathy - it sure is a good feeling...and my Mom is a retired teacher, so it feels extra-good!

Dale - Howdy right back at ya!  Mighty good to see you too my friend.

Jun 24, 2010 07:21 PM
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy and evening there Kent

Kent,
just seen that you had put up a new photo of yourself, so wanted to stop by and tell you that it looks real good.

Jun 26, 2010 12:17 PM