I have done research and created a business plan. I want to just get started investing. I dont know how i should fund my deals. People keep telling me hard money lenders and private lenders should be left up to experienced investors. I havent had positive feedback on getting a bank loan. I just want to know where i should start.
Have you been dealing with big banks or small ones? Have you tried credit unions? or partnering up with someone? Have you gone to SCORE or SBA? They could evaluate your business plan. How about Neighborhood Housing Services? Your accountant may also be able to advise you. If you do not have one or the one you have is not familiar with the different real estate strategies that exist then you may want to consider a new one.
Anyways keeping asking because you only need one yes to get started.
Hey @Jeff Beckles I'm about half way through the book by Brandon turner about investing with low to no money down and if you have not read it I think it might be of use to you. I personally do plan on using hard money at the start. More expensive but if I can market for the right deals I'm in good good shape to make the lender and myself some money but more more importantly build a track record. Hope that helps. Best of luck!!
I haven't tried to contact anyone for funding yet because I wanted to know if anybody had any advice on which option I should go with as a beginner. I have a little bit of money saved to put a down payment on a house but not enough to rehab a house. Only enough to do small cosmetic work. I will try those services thank you very much @Lelith Walker .
I will check that book out thank you @Jordas Reyes
Welcome. Without a solid foundation you will stumble. Fill in the foundation below.
Check out the Start Here page http://www.biggerpockets.com/starthere
Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.
Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 100 past ones to catch up on.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). You can Google to locate them and go to meetup.com
Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook
Consider checking out HUD homes for small multi's owner occupied gets first crack.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
Education is the key you can either spend a lot of money by just jumping in and doing things yourself or you can go to your local library and get books for free or maybe buy something from respected experienced investors. I would advise against paying a lot for this kind of education until you prove to yourself that you can follow the cheap or free stuff. Make sure you are getting advice from someone that is already where you want to be and is or has done what you want to do. Things done in NYC markets won't necessarily work in small town markets and vice verse. Hope this helps. If you want more specifics maybe I can help at @edemmons3.
You need to be specific and target a niche, buy and hold, fix and flip, etc. Each niche has strategies on how to secure financing. You can always look to partners to help fund deals
i great way to get into the game.. Buy a multi family house .. Live in one unit and rent the other.. Better yet live in the basement and rent both of them.. Continue working continue building your equity and continue savings those rent checks.. Nothing in life is easy.. Neither is becoming a re investor with no cash
Thank you everyone for the great advice. I really appreciate it. @Gino Barbaro I have found a niche that I want to target. I have created a business plan and mapped out everything that I want to do. I just need to find the best way to go at it as far as getting funding for deals. Most people I talk to has said that Hard money lenders are for more experienced investors. I have great credit and a little bit of money saved but I don't work a normal job where I get a check stub to show banks. Its hard to prove my income because its all over the place right now.
Hard money lenders are just guys who get money from private money lenders and charge you more. If you have a good deal, present it to private money lenders. Also look up lenders in the community.
@Jerry Padilla is very active with loans. Use linkedin to search for private money lenders
ok thank you for that advice @Gino Barbaro . I will do that.
For conventional financing, you will have to prove you can pay the loan, so income is an important factor. Do you have 2 years of tax returns?
Yes I do. One of the ways I am trying to help my cause is by going to get my real estate license.