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Hey there! I am sure this question has been asked a bunch of times in different ways but would love some help with where i should be focused. I currently have a 3 family property that I am house hacking. My rate is SO LOW that it doesnt make sense to refinance out of it to do another FHA right now and there isnt a ton of equity in the property to qualify for a HELOC. So as I look to scale out my portfolio, I know i need money which i don't exactly have enough right now for a 20% down payment. BUT I also want to start marketing to find deals.

My question is ..Should I start up the marketing engine to start finding deals and then if something comes across thats good, start to look for some private capital OR wait and save up the 20% (around 100k minimum in my area) before marketing looking for deals?

Thanks!

My question is ..Should I start up the marketing engine to start finding deals and then if something comes across thats good, start to look for some private capital OR wait and save up the 20% (around 100k minimum in my area) before marketing looking for deals?

Thanks!

Patricia Steiner · Answer

You do both...you're always looking for opportunities; that's what every successful business person does.  But you also need to know what options are available to you for financing should you find that opportunity.  You need bench strength.  You need a realtor/broker who works with investors (but who isn't currently investing for their own book of business - you don't need to bring a competitor into your circle), a couple of solid lender resources, and a creative insurance broker.  Interview some investor realtors and when you find the right one, that person can connect you to the other resource partners.  Building an empire takes resources so get your bench strength in place and then you can move quickly when the right opportunity surfaces.  Never be satisfied...you've got that part already.  Now bench up.  Best...

Nathan Grabau · Answer

You should be able to qualify for another 5% down conventional loan, you can get one each year to use as your primary. After you live in it for a year you should be able to move out of it, and convert it to some kind of an income property. I would recommend the all of the above approach though on growing your portfolio in its early stages. As you figure out what strategies you excel at you can focus on those strategies.

Doug Laroche · Answer

Im in the same boat as you, i started marketing and have gotten a couple of calls back but they wouldn't go for a seller financing option. im just about at the end of my first year of a house hack and plan on doing another scaling slow is better than not scaling at all!

Andrew Garcia · Answer

Hi @Armando Montrond, first, I would get the funding sorted out.

If you cannot buy the deals once you get them then you wasted time, effort, and money on marketing.

Otherwise, you can start marketing then wholesaling them or bringing in partners to buy the deals with.

Hope this helps! Let me know if I can be of any assistance.

Patrick Kaiser · Answer

I would look for deals and if something that good pops up, you can refi it. Otherwise, you can wholesale it. You might also be able to get a DSCR loan on it as a rental and refi later if the rates are reasonable. Have multiple exit strategies but you can always refi after you go under contract if you have a quick lender.

Matt K. · Answer

If it's really a good deal, in theory you could still make something on it for passing it along to someone that can close it...

i don't personally run a lot of money through my network, but my referrals do. This allows me to stay ahead of things and continue to find opportunities but at same time pause till the finances are in order...

Nathan Gesner · Answer

My recommendation is that you plan to save for your next purchase, but keep looking! If you come across a really good deal, scramble to find the money!

Armando Montrond · Answer

This community really is the best. I am working with a lender but may need to look for other brokers that have more creative lenders they work with and have a really great realtor in my area. I am more so just trying to figure out the order of operations here but I think it does make sense to at least market and see what I can come across. I imagine if a good enough deal comes by, the money will be not far behind it

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