How did you get started?
Good evening all,
I've been a member of the site for a good amount of time now and have just kind of "paid attention" to a lot of the discussion on here. I am planning to start up an LLC and start investing in rentals in the Toledo, OH market in the near future. The plan is to look in to single family and small multiple unit properties to get started. I'd like to know how all of you got started as far as funding is concerned. As a 26 year old recent college graduate, I don't have a lot of capital to work with but there are a lot of very small deals ($20-30k) in the Toledo market that produce $900-1000 in monthly rents. I'd like to purchase one of those deals early next year and put all of the rental income to pay down the principal balance on whatever type of loan I am able to get & then hopefully financing will come easier for my next property. I work for a conventional mortgage lender and know that you won't be able to finance an investment property without a good chunk down, so the plan is to secure the funds through some other form of lending & then pay cash for one of the smaller deals in the area that have good income coming in.
The questions I have for you all are the following:
- How did you get the funding for your first deal?
- Do you know of any lenders that will lend $20-50k directly to a brand new LLC (almost like a personal loan to the LLC)? If not, do you have other suggestions for getting this amount of funding with little to no down?
- What struggles did you have when you started up?
All of your help is greatly appreciated.