Posted by Jay (TN) on July 02, 2001 at 18:35:13:
Stacey, I am working just like Tommy FL. I buy fixer-uppers. If you don’t have the money, you can use your muscle to build equity. Getting started is the hard part. I am fortunate enough to be able to do a cash out refinance on a property owned. I’m using that cash out to make down payments on new rentals, pulling little to no funds from my own pocket. If I didn’t have those resources, I would buy properties right, repair and rent, and then refinance to leverage into new properties.
You just need to find the right sellers to get you in the game.
Good luck,
jay
Best way to get financing - Posted by Stacey
Posted by Stacey on July 01, 2001 at 19:12:17:
I have been reading and learning how to become a real estate investor for about 1 year. I own a home (have $25,000 equity), have good credit, but don’t make very much money at my current job. I’m at the point where I’ve found several properties - $100,000 range, however, none of the sellers will sell on contract. I’ve checked around at several mortage companies who say that I would need 20% to 30% downpayment. So for $100,000 home I would need $30,000 - I don’t have that much money. What is the best way to get my first property to rent, without spending my entire savings. Any answers will be greatly appreciated.
Re: Best way to get financing - Posted by Tommy_FL
Posted by Tommy_FL on July 01, 2001 at 21:28:05:
Stacey,
Your situation reminds me a lot of mine when I started. I used an equity line of credit on my home to buy my first rental. I only buy fixer-uppers, estate sales, REO’s…fixed them up and got maximum rent on them. I would then refinance one of the rental after 6 months, cash out to buy another one and so on…So far , so good, I now own 3 rentals (a condo, a duplex and a triplex) beside my home. Just find a motivated seller and you got a deal. Good luck.