First, educate yourself a bit on what a real estate investor is looking for. Take a look on Amazon for some great real estate investing books written by Canadians (More than Cashflow is one I wrote but there are others with high reviews as well). Get comfortable with the lingo and goals of an investor.
Second, research what programs are available to finance investment properties
. Usually it’s the investors who already have a couple of properties that are going to be the most eager to find banks that will work with them so focus on that. What options are available if you use the overall portfolio value and cashflow? What banks will allow you to include all of the income for a legal suite, not just a portion of it? What options are there for someone who has the personal income to qualify for the purchase but doesn’t have all the down payment funds easily accessible? What banks will work with a second mortgage? Once you’re armed with this information and the knowledge of what investors will be looking for, it’s time to find some new clients.
Third, find where real estate investors in your market connect with each other. Most markets have a local real estate investing club meeting. MeetUp.com is a good place to start searching. You can also go to Google and search ‘real estate investing club’ + your city.
Fourth, when you’re at the meeting, your focus initially should be learning what people are already doing to finance their deals and understand if you can help. If you have the opportunity to stand up and share an opportunity or say what you do, the best thing you can do is say something that will connect with most of the investors in the room. You could say “Hi I’m Tim – a local mortgage broker. If you’ve had a bank tell you they won’t finance your investment property
or you’re not sure if you’re going to be able to buy an investment property
I’d love to chat to see if I can help you. I’ve uncovered a couple of ways you can finance your deals that most mortgage brokers won’t know about because they weren’t looking. Here’s my contact info.”
If you aren’t invited to stand, chat with the other investors and ask good questions. Find the investors who are actively shopping for deals and doing deals. Ask them what they are doing to find financing currently. Find out if it’s working for them. Spend the time to understand what is working and what isn’t. Ask questions like “have you considered finding a mortgage broker that is more specialized in working with investors?” or “Have you tried to put a second mortgage on one of your existing properties – if you’re allowed to – and then using that as a down payment. There is a way we can get that financed assuming a few other ratio’s are met?” Offer some solutions so people see that you know what can be done to help them. Then, give them your card!
Fifth, be responsive and organized. The more streamlined you can make the process for an investor the more likely they will be to come back again and again. Sometimes the lenders throw requests at you that you never could have anticipated, but if many things are likely to be required like leases, income statements from other properties as well as the usual paperwork. Ask for it all the first time.