Newbie Investors Question?

Question

Do you think the best way to start RE in a small market is to go Driving for Dollars and Call/Message owners and try and get the property on a Seller Financing contract???? I have a little money saved up and trying to find the most creative way to start RE in my market! Any Thoughts?

Daniel Gutierrez · Answer

Try reaching out to local community credit unions. They tend to be more forgiving when it comes to the condition of the home since they are local and know the area. Big banks are the worst and won't be much help. Shoot for seller financing but it's not that easy to find.

Jeremiah Belin · Answer

@Daniel Gutierrez oh absolutely that’s what I want to do. But I don’t think a bank will finance it because of it conditions. I want to seller finance it and rent it out that way.

Daniel Gutierrez · Answer

@Jeremiah Belin seller financing is a great option if you can convince someone to do it but you might want to look at hard money lenders or a credit union for financing. FHA is also an option for a very low down payment but its come with mortgage insurance which is never ideal. Have you thought about buying one of the 30ish K homes and house hacking it to get your first deal and start saving more money?

Jeremiah Belin · Answer

@Daniel Gutierrez homes in my market are about 30k-60k and won’t take much of anything to rehab. What do you think is a good way to Finance the project?

Daniel Gutierrez · Answer

@Jeremiah Belin Those are both good places to start but be prepared to hit countless walls. Seller financing is difficult to come by on a good deal and driving for dollars still requires you to have cash. You may want to save up more to be in a better financial position to responsibly purchase and manage the investment. Remember that you'll still need capital after the purchase in order to manage the investment and cover any issues/ expenses that arise.