Unsure about financing my first investment

4 Replies

Hello, as I am new to this forum and have yet to begin investing I am a little confused about how I should finance... A little about myself.

- 18 years old, little to no credit (just got my credit card a month ago) I work for my grandpa's construction company (have also been working there for a month) I don't have much money saved at the moment but with this job I will be able to save around $1,000 a month. I plan on flipping a single family home to gain capital in the early months of 2016 so I can then begin investing in multi-family homes. 

But what steps do I need to take now to actually be approved for a loan? I plan on buying in the $20,000 - $50,000 range so a 20% downpayment shouldn't be a problem, still just a little confused with the whole process. Any help or tips would be greatly appreciated.

Why make it so hard on yourself.  Learn to buy with creative finance and start buying now. You dont need any cash to buy property.  That is the truth, well you might need a thousand or less for closing costs but thats about it.

You are here on BP where you can learn all that you to start buying NOW

Hello Andrew,

Welcome to BP and congrats on getting an early start in real estate!

I think you will find a lot of ways to get started now and a lot of people to learn from. Do you have a goal in mind?  What do you plan to do with your $20-50k first purchase?

I am a buy and hold investor, and use conventional 30yr fixed financing to purchase rentals.  From what I have been told, banks won't offer this type of loan on a property worth less than $50k, but maybe you can find someone that will.  If you are doing buy and hold, you might need to use another source for your lending, at least at first- buy with hard money, fix up, and refinance into a long term conventional loan for example.

Best of luck,

Kelly

thank you both for the replies, but im still unsure how you can buy a house with no money down and no credit. Especially since kelly said you cannot get a loan for a home under $50k. I'll do more research though.

But one last question, I plan on creating an LLC after investing in a rental to hold the properties under, but would it be possible to use the LLC to take out a business loan to buy the property? Or would that not work. Thanks again

Originally posted by @Josh Caldwell :

Why make it so hard on yourself.  Learn to buy with creative finance and start buying now. You dont need any cash to buy property.  That is the truth, well you might need a thousand or less for closing costs but thats about it.

You are here on BP where you can learn all that you to start buying NOW

 OK.  I've got 10k to invest right now.  But I honestly have no idea where to start, and your post makes it look like all we have to do is read it here on BP.  But where in the thousands of posts does something like this appear.  You say "creative financing".  I say: In layman's terms, why not give us an example of what to do from beginning to end.  I feel many of the posters on here just like to say "read about how to do it".

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