Posted by vikki on March 18, 2004 at 13:43:56:
We get 100% financing on non owner occupied for people all of the time. It should not affect your ability to get loans in the future. If the property shows cash flow it might even help, because it raises your income.
Financing - Posted by Raul Perez
Posted by Raul Perez on March 17, 2004 at 20:30:17:
Hello,
I’m interested in knowing whether it’s true or not that to buy investment property I need to have about 20-30% down payment.
I’m just starting out and wanted to focus in tax foreclosure sales in the Dallas,Texas area. But I have realized that there is way too much competition here and very few good(not homestead exempt, no liens that survive foreclosure, etc…) deals at my range of less than 10K. My credit score is 700+ and I’ve had a steady job as a electrical design engineer in a major corp. for 5 years. I don’t have any major debts. The only reason I’m doing this is to find a way of creating sustainable cashflow for the future, I’m not trying to get rich quick.
So my question is, does somebody like me have to put down 20-30% to get financing from a bank? What if I find a property that is 20% below market value, do I still have to put down 20-30% of the loan amount?
If I finance a property and rent it having a positive cash flow at the end of the year. Is that mortgage going to affect my ability of obtaining financing for future investments?
Thank you.
regards, Raul
Re: Financing - Posted by wes
Posted by wes on March 17, 2004 at 20:55:01:
1st of all, before you consider purchasing your first property or doing your first deal, you need to do alot more reading and ask many more questions. It is obvious by the question you asked that you need more knowledge before you go out and invest/risk your hard earned money.
To answer your question, with a credit score as high as yours and a good job like you appear to have, there is no reason why you should not be able to get at least 95% financing. However, 100% should not at all be hard for you to get.
Re: Financing - Posted by Raul Perez
Posted by Raul Perez on March 17, 2004 at 21:52:58:
Wes,
Thanks for your info and your sincerity. I definitely need to learn more, but every book I get my hands on is watered down and has very little in terms of details.
I had focused in learning Texas tax deed sales and read a couple of books like “Texas Houses for Pennies” by Darius Barazandeh. I found this book pretty good and accurate. I’ve learned how to do title searches, what to watch out for in these types of transctions, etc… But I have not understood the more general RE transactions.
I have read Nothing Down for the 90’s by Bob Allen, Real Estate Riches by Dolf de Roos and a bunch of the Rich Dad books. These books are a lot of hype but not a lot of info(except some of the advisors series books in the Rich Dad collection). I have read very bad reviews about many of the no money down courses so I haven’t bought any. What do you think are the best references to learn RE ?
Thanks.
regards, Raul
Re: Financing - Posted by James Strange
Posted by James Strange on March 18, 2004 at 19:02:41:
You have an investment group in your area.
Check them out.
Re: Financing - Posted by Ryan
Posted by Ryan on March 18, 2004 at 08:57:15:
Raul,
I have been investing for about 5 years and have taken many classes and read several books. The best learning material that I have found, for the money, up to this point if you are interested in low money down deals are written by William Bronchick. He is a real estate attorney out of colorado and has a website legalwiz.com. His materials are very informative and not to expensive. Hope this might help.
Re: Financing - Posted by wes
Posted by wes on March 18, 2004 at 06:34:38:
The best place to start is right here at this site(and I might add, it’s free information).
Go to the Information section at the top left of your screen. Look under each topic heading. There are many very informative articles.
Once you have finished reading there,(will take awhile), you can do a subject search of the archives. I would imagine you will find there has been a discussion on one of the discussion boards of virtually any subject you have an interest. Sometimes there is great information given. Sometimes those that answer questions just seem to have to blow off some steam. However, it is free information, largely from people that have real world experiance in the subject matter.
This is a great place to learn. People are very willing to help with almost any question you might have. Use it wisely!