“Realtor Refers a Client to Get Preapproved”

However, after talking with the client, I end up sending him back to Karen. The client wanted to get preapproved to purchase a four family home and already lives in a 2 family. I explained that he needed 25% down to buy a 4 family, which he told me he didn’t have.

I asked him how much equity he thought he had in his present home, he estimated $70,000 to $80,000. I asked what his long term plans were for that home, he said he didn’t have any. The why not sell it and then buy the 4 family, as the down payment would be 3.5% down. Rent out the other 3 units and live rent free and still have about $50,000 to $60,000 left over for other real estate investments.

After a bit more discussion, I recommend he should have Karen come up with a listing price for his home and start investigating the availability of 4 family homes in his area. Instead of one sale, she may end up with two transactions. Thank you for the referral Karen.