Financing your few properties?

Question

So I am new to Real Estate and got a Line of Credit to start things off.  Has anyone else started off that way, or how do you finance your first few properties?

Nathan Gesner · Answer

A line of credit is just another way of borrowing money, not unlike using a credit card. If you want to buy a $100,000 home and put $25,000 down using your line of credit, you've just borrowed $100,000 and $25,000 of it is at a higher rate.

This is how people over-leverage and get into hot water. I feel a line of credit, hard money loan, or credit cards should only be used if you have the ability to pay them off quickly. For credit cards, pay it off immediately. For line of credit or hard money, pay it off in 6-12 months.

Eliott Elias · Answer

What kind of line of credit?

Mark Munson · Answer

@Travis Anderson

It depends on what your LOC looks like, but most people will eventually start financing their deals, as leverage is the fastest way to grow and also remain liquid if another deal comes along. I'm happy to connect to give you some feedback on the financing side of things. Feel free to message me

Joshua Matthews · Answer

Are you a homeowner? I'd start there. In addition, read the Forums here, listen to Bigger Pockets podcast, and learn learn learn. It won't take long for you to grow and begin investing -- if that's what you're asking. Feel free to DM me and we can talk more.