Find your tenant before signing!

finding tenants when investing in real estateRecently, I experienced one of the many issues that real estate investors are facing: a bank saying no at the very last moment, a broker that turns his back. In short, when you are back to square one. In the meantime, my future apartment may not go back on the market for rent and also may not longer be what I hope it will be.

Solution?

A few days ago my broker who I had been without news for a while called me: ‘I’m sorry but the bank finally refused to grant the loan. In a two weeks time frame the bank makes tells me NO and the broker has nothing to offer… Back to square one, after a month of hard bargaining, with as a result a month of offset to get the keys.

You should know that I had significantly reduced my expectations. So the signing was scheduled over a 3 weeks period… I returned with a month in addition to offset to obtain the keys…

Market not helping

The situation was even more critical as in some cities, the prices on the market are significantly higher at this time of the year.

I have therefore called my real estate agent to explain the situation, the offset of the date of signature, a terminating clause, etc. This is what I suggested:

  • Start by marketing the offer on the Internet.
  • Find the tenant before signing and even having the keys.

Result: we went to this solution, and 2 weeks after I had my future tenant! 🙂

Conclusion: do not wait to have the key to find your tenant! And don’t you miss twice as me, the tenant will not appreciate it!

© Graydon Manor