Newbie Investor .... Seeking advice about financing options

Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes

I've been a part of the BP family since 2018 and am finally tired of life on the sidelines so I'm getting in the game. I've identified a multifamily property but am still a little green when it comes to financing options. I have several barriers that won't allow me to go the conventional financing route (left my six-figure corporate job to do real estate full-time). I have excellent credit (high 760s) but very little money down (about $60K available on credit cards, $10K cash).

My affirmation: I will own my first multi-family unit within the next 30-60 days. Help!!!!

Thanks in advance for the advice... I am doing it afraid ya'll but I am so excited about building generational wealth.

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Alex Ramirez

Rental Property Investor · Houston, TX · Member since 2019 · 184 posts · 147 votes

@Maureen Simmons that takes some courage to quit your job and focus on RE. I personally never felt ready to make a move until my wife told me "you are just wasting your time and our money" after sitting on the sidelines for longer than a year and just focus on "education". That's exactly what I needed to hear to take massive action. After 2.5 years (including my slacking years) I own a 12 unit, a 9 unit, 1 STR and I am a GP on 188 units and an LP in another 300+ units. I can tell you right now, you will never feel ready. A book that fires me up every time I read it to take massive action is "10x by Grand Cardone". Get on wholesalers buyer's list and analyze every single deal they send you. Go to meetups and seek for partners. Start a direct mail campaign and find an off market deal and find an equity partner that can bring the dollars or wholesale it for a 5-6 figure profit. There are so many things you can do. Let me know if you have any questions. Happy to help you.

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Abdul Mohammed
Investor · Louisville, KY · Member since 2022 · 9 posts · 7 votes
4y
Dont mind my ignorance but why on earth would you quit your w2? Without a job your financing options are few and far
6 Reply
Evan M.
Member since 2022 · 4 posts · 1 vote
4y
0 Reply
Maureen Simmons
OP
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
4y
Quote from @Abdul Mohammed:

Dont mind my ignorance but why on earth would you quit your w2? Without a job your financing options are few and far

No question is an ignorant question. Unfortunately, I can't expound on it on a public forum.
5 Reply
Alex Ramirez
Rental Property Investor · Houston, TX · Member since 2019 · 184 posts · 147 votes
4y
@Maureen Simmons that takes some courage to quit your job and focus on RE. I personally never felt ready to make a move until my wife told me "you are just wasting your time and our money" after sitting on the sidelines for longer than a year and just focus on "education". That's exactly what I needed to hear to take massive action. After 2.5 years (including my slacking years) I own a 12 unit, a 9 unit, 1 STR and I am a GP on 188 units and an LP in another 300+ units. I can tell you right now, you will never feel ready. A book that fires me up every time I read it to take massive action is "10x by Grand Cardone". Get on wholesalers buyer's list and analyze every single deal they send you. Go to meetups and seek for partners. Start a direct mail campaign and find an off market deal and find an equity partner that can bring the dollars or wholesale it for a 5-6 figure profit. There are so many things you can do. Let me know if you have any questions. Happy to help you.
15 Reply
Maureen Simmons
OP
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
4y
Quote from @Alex Ramirez:

@Maureen Simmons that takes some courage to quit your job and focus on RE. I personally never felt ready to make a move until my wife told me "you are just wasting your time and our money" after sitting on the sidelines for longer than a year and just focus on "education". That's exactly what I needed to hear to take massive action. After 2.5 years (including my slacking years) I own a 12 unit, a 9 unit, 1 STR and I am a GP on 188 units and an LP in another 300+ units. I can tell you right now, you will never feel ready. A book that fires me up every time I read it to take massive action is "10x by Grand Cardone". Get on wholesalers buyer's list and analyze every single deal they send you. Go to meetups and seek for partners. Start a direct mail campaign and find an off market deal and find an equity partner that can bring the dollars or wholesale it for a 5-6 figure profit. There are so many things you can do. Let me know if you have any questions. Happy to help you.

Alex!!!! Your testimonial is the fuel I needed to keep going. I agree, that there is never a "good" time but I know now is the right time. I am driving for dollars (looking for off-market properties) as well as connecting with other realtors. I hadn't thought about the direct mail campaign but that is a strategy I will employ as well.

I hadn't thought about "equity partners" so thanks for dropping that nugget. You're awesome!!! Thanks for the information.
3 Reply
Nonkhane Nonnie Saycosie
Real Estate Agent · Saginaw, MI · Member since 2022 · 28 posts · 15 votes
4y
@Maureen Simmons First, I would like to congratulate you for having the courage to start this forum. I am a newbie to the BP family as well. Sure a six-figure corporate job may appear good on paper , but you must release anything that no longer serves your soul! Having the strength to be authentic and knowing your value, will open many doors!
Look into the podcast referencing buying land in "Opportunity Zones", this Tax Free Wealth building episode covers mind blowing strategies. I can't think of the which podcast episode it was, but definitely look and reply back. Continue your growth, and continue learning. You got this!
2 Reply
Maureen Simmons
OP
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
4y
Quote from @Nonkhane Nonnie Saycosie:

@Maureen Simmons First, I would like to congratulate you for having the courage to start this forum. I am a newbie to the BP family as well. Sure a six-figure corporate job may appear good on paper , but you must release anything that no longer serves your soul! Having the strength to be authentic and knowing your value, will open many doors!
Look into the podcast referencing buying land in "Opportunity Zones", this Tax Free Wealth building episode covers mind blowing strategies. I can't think of the which podcast episode it was, but definitely look and reply back. Continue your growth, and continue learning. You got this!

Thanks so much, Nonkhane! I couldn't agree with you more. My freedom is worth more than the six figures I earned. More importantly, I realized I was being underpaid for the gifts and talents I brought to the table. As a corporate senior leader with organizational development and design experience, I made the company millions while only earning a measly $100K+. If I have the talent to make a company millions, I have what it takes to make millions for myself.

I'll look for the podcast. I am arming myself with as much knowledge as I can.
2 Reply
Nonkhane Nonnie Saycosie
Real Estate Agent · Saginaw, MI · Member since 2022 · 28 posts · 15 votes
4y

Episode #599
Yess!!! Underpaid and undervalued no longer exist in my world either, I could write novels on that sister! Even though we shall practice gratitude for those experiences, they no longer define us<3 Hope you find much value in this episode as I have:)
3 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Find a partner with money. You'll have a hard time getting any kind of loan with no income.
The DIY Landlord Book4.7247 Reviews
Website View Page
4 Reply
Nathan Murith
Investor · San Rafael · Member since 2020 · 376 posts · 274 votes
4y
@Maureen Simmons congratulations! It takes a lot of courage to do what you did, and I am so happy for you!
Have you started looking at non-qualified mortgage lenders who could help? They have good loan products especially for people who do not have a W2. happy to recommend the ones we like.
Also, you could look at using a service like plastiq.com (I am not affiliated) to get that $60k from credit cards to cash or down payment money.
Happy to chat more and refer anyone we like using, so do not hesitate to reach out, connect and DM me.
On to great things!!
1 Reply
Maureen Simmons
OP
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
4y
Quote from @Nathan Murith:

@Maureen Simmons congratulations! It takes a lot of courage to do what you did, and I am so happy for you!
Have you started looking at non-qualified mortgage lenders who could help? They have good loan products especially for people who do not have a W2. happy to recommend the ones we like.
Also, you could look at using a service like plastiq.com (I am not affiliated) to get that $60k from credit cards to cash or down payment money.
Happy to chat more and refer anyone we like using, so do not hesitate to reach out, connect and DM me.
On to great things!!

Hello Nathan!! Thank you so much for the positive feedback. It’s people like you and posts like yours that affirm my feelings about my investment journey. I had not considered non-qualified lenders but I would love any recommendations you care to share. I’ll check out plastiq.com as well.
If you’re still in San Rafael would love to chat more over coffee/lunch. I’m in Uptown Oakland. Let’s build.
0 Reply
Nathan Murith
Investor · San Rafael · Member since 2020 · 376 posts · 274 votes
4y
@Maureen Simmons I'm still around San Rafael. I'll send you a DM so we can exchange info
1 Reply
Maureen Simmons
OP
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
4y
Quote from @Nathan Gesner:

Find a partner with money. You'll have a hard time getting any kind of loan with no income.

Thanks for the sage advice, Nathan.
0 Reply
Maureen Simmons
OP
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
4y
Quote from @Nonkhane Nonnie Saycosie:

Episode #599
Yess!!! Underpaid and undervalued no longer exist in my world either, I could write novels on that sister! Even though we shall practice gratitude for those experiences, they no longer define us<3 Hope you find much value in this episode as I have:)

Thanks so much for sharing the link/podcast. Listening now... Let's connect to stay in touch. I'll send you a DM.
1 Reply
Andrew Garcia
Lender · Charlotte, NC · Member since 2022 · 739 posts · 410 votes
4y
Hi @Maureen Simmons, you have a few options here:
1. Find another W-2 job until you close on the house and use conventional or FHA financing.
2. Get a DSCR loan. There is no income or job verification. You are required to put down at least 20%, however.
Additionally, no lender will allow you to use credit cards to pay for the down payment.
There might be other options but I am not familiar with your borrower profile so I cannot advise on those.
Congratulations on jumping into RE full time!
2 Reply
Maureen Simmons
OP
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
4y
Quote from @Andrew Garcia:

Hi @Maureen Simmons, you have a few options here:
1. Find another W-2 job until you close on the house and use conventional or FHA financing.
2. Get a DSCR loan. There is no income or job verification. You are required to put down at least 20%, however.
Additionally, no lender will allow you to use credit cards to pay for the down payment.
There might be other options but I am not familiar with your borrower profile so I cannot advise on those.
Congratulations on jumping into RE full time!

Thanks so much, Andrew! I actually found a hard money lender who will do a 100% financing on my first deal. Where there's a will...there is ALWAYS a way.
1 Reply
Maureen Simmons
OP
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
4y
Quote from @Nonkhane Nonnie Saycosie:

Episode #599
Yess!!! Underpaid and undervalued no longer exist in my world either, I could write novels on that sister! Even though we shall practice gratitude for those experiences, they no longer define us<3 Hope you find much value in this episode as I have:)

OMG!!! I just finished the podcast. Thanks for coming through with the gem, Queen! I am definitely implementing this strategy as I build my portfolio. This is gold...
0 Reply
Scott WolfPro Member
Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 958 votes
4y
Quote from @Maureen Simmons:

Quote from @Andrew Garcia:

Hi @Maureen Simmons, you have a few options here:
1. Find another W-2 job until you close on the house and use conventional or FHA financing.
2. Get a DSCR loan. There is no income or job verification. You are required to put down at least 20%, however.
Additionally, no lender will allow you to use credit cards to pay for the down payment.
There might be other options but I am not familiar with your borrower profile so I cannot advise on those.
Congratulations on jumping into RE full time!

Thanks so much, Andrew! I actually found a hard money lender who will do a 100% financing on my first deal. Where there's a will...there is ALWAYS a way.

Make sure they're legit and don't pay any upfront fees!
2 Reply
Paul Crosby II
Lender · Columbus · Member since 2020 · 61 posts · 103 votes
4y
Hi Maureen!
What a leap of faith! That is incredible.
I would definitely suggest tax lien investing podcast from Bigger pockets. You might be able to leverage your cash and end up owning a property on the cheap.
In regards to using credit, you could use a secured loan on a vehicle or other asset but not unsecured debt.

I will say that typically lenders look at a 60 day window for your bank statement and dont go into much detail on why your cards are at their current limits.
1 Reply
Bianca Rodrigues
Rental Property Investor · Member since 2022 · 40 posts · 38 votes
4y
Quote from @Alex Ramirez:

@Maureen Simmons that takes some courage to quit your job and focus on RE. I personally never felt ready to make a move until my wife told me "you are just wasting your time and our money" after sitting on the sidelines for longer than a year and just focus on "education". That's exactly what I needed to hear to take massive action. After 2.5 years (including my slacking years) I own a 12 unit, a 9 unit, 1 STR and I am a GP on 188 units and an LP in another 300+ units. I can tell you right now, you will never feel ready. A book that fires me up every time I read it to take massive action is "10x by Grand Cardone". Get on wholesalers buyer's list and analyze every single deal they send you. Go to meetups and seek for partners. Start a direct mail campaign and find an off market deal and find an equity partner that can bring the dollars or wholesale it for a 5-6 figure profit. There are so many things you can do. Let me know if you have any questions. Happy to help you.

Hi @Alex Ramirez -intersting point about getting on a wholesalers buyer's list. How would I go about doing this -aka finding a wholesaler near me that I could reach out to? Thanks!
0 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Maureen Simmons:

I've been a part of the BP family since 2018 and am finally tired of life on the sidelines so I'm getting in the game. I've identified a multifamily property but am still a little green when it comes to financing options. I have several barriers that won't allow me to go the conventional financing route (left my six-figure corporate job to do real estate full-time). I have excellent credit (high 760s) but very little money down (about $60K available on credit cards, $10K cash).

My affirmation: I will own my first multi-family unit within the next 30-60 days. Help!!!!

Thanks in advance for the advice... I am doing it afraid ya'll but I am so excited about building generational wealth.

Honestly, I always recommend people to not quite their job until they have bought a property or two. Could you get another one? Then quite after you buy the property? If you do not want to do that then try asking people to invest with you. If there is a will there is way. Call around to as many lenders and compare their rates and terms.
1 Reply
Alex Ramirez
Rental Property Investor · Houston, TX · Member since 2019 · 184 posts · 147 votes
4y
@Bianca Rodrigues join your local facebook real estate investing groups and post on there you are looking for a property. I would word it something like “Hey wholesalers or hey everyone, I am looking for this type of property (maybe include sq/ft or beds/baths), let Me know what you have” or keep it general so they send you all their inventory. You’ll be surprised how many Wholesalers reach out to you. Ask them to put you in their buyer’s list. They will ask what’s your criteria. This means: location, price range, beds, baths, sq/ft. Also, whenever someone lists a property there, make sure you drop your email address in the comments so they can add you into their buyer’s list. Reach out if you have any more questions
2 Reply
Bianca Rodrigues
Rental Property Investor · Member since 2022 · 40 posts · 38 votes
4y
Great info - really appreciate it, thank you!
0 Reply
Maureen Simmons
OP
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
4y
Quote from @Steven Foster Wilson:

Quote from @Maureen Simmons:

I've been a part of the BP family since 2018 and am finally tired of life on the sidelines so I'm getting in the game. I've identified a multifamily property but am still a little green when it comes to financing options. I have several barriers that won't allow me to go the conventional financing route (left my six-figure corporate job to do real estate full-time). I have excellent credit (high 760s) but very little money down (about $60K available on credit cards, $10K cash).

My affirmation: I will own my first multi-family unit within the next 30-60 days. Help!!!!

Thanks in advance for the advice... I am doing it afraid ya'll but I am so excited about building generational wealth.

Honestly, I always recommend people to not quite their job until they have bought a property or two. Could you get another one? Then quite after you buy the property? If you do not want to do that then try asking people to invest with you. If there is a will there is way. Call around to as many lenders and compare their rates and terms.

Hey Steve! I tend to agree with you but there are options for generating the resources needed to get started. I am the architect behind a historical piece of legislation in California that will, hopefully, correct the economic wealth gap that makes it a challenge for some to create the scenarios that lead to economic freedom. I am destined for success. It may be hard but it’s not impossible.
2 Reply
Kristen Sonsma
Real Estate Consultant · Denver, CO · Member since 2015 · 4 posts · 2 votes
4y
Depending on the value add opportunity, I would suggest bridge, DSCR, or a business partner. The more you network, the more you might see the value you bring to the table for someone else! Each opportunity might be different but I'd recommend building out all options.

Kristen

1 Reply

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