BiggerPockets

There are a lot of people selling on Land Contract, so that's one way. Do you have an money for a down payment? From my experience, refi's on rentals are almost non-existent these days. But, ifyour credit is good and you have adequate income, you should be able to get conventional financing. What are prices like in Saginaw?

All the hot rentals are ranging from 20-50k. I will really be looking once I sell my current residence and I have the proceeds from the sale. I should have around 50k to work with and I would rather not pay all cash for properties. As far as income, haha well......I recently split ways with my former employer so that will be non existent. I was planning on doing a few rehabs per year and living of those proceeds but I would love to pick up a few rentals along the way. My credit is fine, not great. 700 I believe.

Most of mine are private lenders. We pay 8% on a 1st and 9% on a 2nd. I also have some seller carry backs and subject to properties as well.

Few ways. Local bank financing with 20 - 30% down. Buying local bank REO's and negotiate 10% down. The bank is going to need to see you are a qualified candidate and experienced investor. Private financing for a 2nd--using that 2nd to for a down payment to buy from local bank. Owner financing.

I stay conservative with the goal being long term principal reduction plus property appreciation...minimal CF.

From a small regional tx bank
20% down
15 year fixed @ just south of 6%
OR
5 year arm at 5.5%

Both 15 year amoritization

I am going to finance our next batch with proceeds from development deals. Develop, sell, profit, keep some liquidity, buy rentals, rinse/repeat. This will bolster our liquidity and finance the equity tranche of our new purchases. Distributions from our fund will also grease the liquidity wheels as we spit off more profits.

For the long-term financing I will likely look for FNMA subject-to purchases since I am out of my own FNMA bullets. One of our short term goals is to deleverage a bit more to strengthen our balance sheet to up our lines for construction financing. This will keep us from having to engage JV partners as much for development deals. I don't mind JV partners, but they certainly complicate things. Doing deals on your own or with money you control is much easier.

Brian,
I actually don't, I flip deals and pay cash for my holdings. Just my plan of action. It works for me.

I'm paying 5.25% with a local bank. These are commercial loans as I have no other option (more than ten financed properties). These are 5yr notes with a 20 yr am and 1/4 point. Appraisals are $100 dollars and there is a one point pre-pay in the first year. I usually put 25-30% down and the loan is based on purchase price.

I don't have to do any application and always get the "yes" within 24 hours. I have a 25 yr relationship with this bank and keep 6 figures there. I would advise anyone to try to get a personal relationship with a local bank. When we first met the Sr. V.P. we were young and in a far more precarious position.

I've discussed consolidating a number of their loans onto one property in an effort to get under ten mortgaged properties. They seemed very willing to do this. This would not be a blanket trust, but we did do this with him in the early days (I asked him if he wanted our first born child too!).

Brian / I'm with the Rob G. camp. Cash only, money comes from Atlanta flips and Ontario HML's. We buy newer Florida SFR's & townhomes under $90k, B neighborhoods. It's slower, (because we buy half as many homes), earnings are lower, (for the same reason), but very comfortable sleeps. Still a part-timer...with a very deliberate plan.

Mike P.

Brian,

On my last rental purchase I used a LOC secured against another one of my rentals that I own Free and Clear. It is interest only and the current rate is only 5.49%. [The rate can fluctuate (although it never has so far after almost a year)].

Then I pay the line off as soon as I can. Putting day job income against it and rent money. My strategy is long term buy and hold and this takes time, but you end up with properties that get paid off quickly. Once you get 3-4 that are F&C it really snowballs.

I absolutely love these lines of credit. The funds are there and available when you need it - just move it over to your checking account. Only pay interest when you ping it, etc.. I think they work well for someone that wants to buy all cash and then really accelerate repayment. If you are looking for a really low rate that locks in for a long term then this strategy might not work.

Good luck,
Ch.