Finacing your first deal

[Tim Lovell]

• Hi BP members

I have received and read a lot of great information on this site, I have learned to analyze property's. I have been to Syracuse NY, North Adams MA, Springfield MA, and in my own area. I have met a lot of great realtors that bend over backwards to help you. But there is one area that I am having a difficult time in and that's the finance area. I am limited on funds. and credit is ok. Can anyone lead me in the wright direction. I am not looking for per say money. I am looking I guess for some one that's been there done that and can tell me YOU NEED TO DO THIS or YOU NEED TO HAVE THIS.

Thank You all so much

Tim Lovell

Plymouth MA.

[Brian Ellis]

Hi Tim,

The best solution is to live frugal for a while. Save, save, and save even more. 

If you were to "house-hack" a multi-family in plymouth, with an FHA loan, you are looking to spend anywhere from 12.5k - 15k on a down payment alone (thats with asking the seller to pay closing costs). Closing costs around here will run you another 7-9k.

You always have the option of finding a single family that needs to be fixed up, and utilizing a 203k loan, which is 3.5% down. The bank would coordinate funding all the repairs with whatever contractor is doing the work, and then roll those costs into the loan.

Youll be amazed at how much money you can save by living frugal. Cut down on living costs, like cable, eating out, buying coffee, buying expensive clothes, getting rid of that $400 car payment and buying one outright for a couple grand. You get the idea. Do that with a second job and youll have the money you need to invest in no time. 

Best of luck to you moving forward!