How can I buy property for $10,000 down?

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How can I buy property for $10,000 down?

Warren Sawyers
Nashville, TN · Member since 2019 · 19 posts · 7 votes

I am interested in real estate and trying to figure out the best way to start.

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Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y

@Warren Sawyers

Are you saying you have $10k saved up? I’d go fha 3.5% down. Multi family. You’ll need to live there for 12 months. Well worth it. Ask seller to contribute towards closing costs, even if it means raising offer price.

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  • Michael Ealy
    Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
    7y

    One thing that others have not covered here is get a Business line of credit. If you have a 720 credit score, good job and very little credit card balances, you can qualify for a $40,000 (or more) BLOC.

    1Reply
  • Jeffrey Bower
    Member since 2019 · 94 posts · 50 votes
    7y
    Originally posted by @Warren Sawyers:

    @Anthony Wick Thank you , yes 10k saved up and can you go a little more in detail about fha?

    FHA is Federal Housing Administration (FHA) and they offer a loan that you can use towards buying a multi family unit. But there are requirements to be met, such as living on property because there's an occupancy requirement. That means, you have to live on the property for a certain amount of time, like a year. You'll be an owner and occupant. You put down 3.5% of the price, like say for a duplex, so you might find a decent property for $10k dp.

    1Reply
  • Ron Gallagher
    Investor · Washington, DC · Member since 2017 · 198 posts · 323 votes
    7y
    Originally posted by @Michael Ealy:

    One thing that others have not covered here is get a Business line of credit. If you have a 720 credit score, good job and very little credit card balances, you can qualify for a $40,000 (or more) BLOC.

    I want a BLOC! Which lenders do you use for your BLOC?

    0Reply
  • Michael Ealy
    Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
    7y
    Originally posted by @Ron Gallagher:
    Originally posted by @Michael Ealy:

    One thing that others have not covered here is get a Business line of credit. If you have a 720 credit score, good job and very little credit card balances, you can qualify for a $40,000 (or more) BLOC.

    I want a BLOC! Which lenders do you use for your BLOC?

    I sent you a PM

    1Reply
  • Spencer Cornelia
    Investor · Las Vegas, NV · Member since 2017 · 321 posts · 524 votes
    7y

    @Warren Sawyers I haven't seen anyone mention this: look for seller financing options.  My first deal was a 4plex with $20k down and $260k purchase price.  I was able to purchase the property because of seller financing.

    Another option is a subject to deal with $20k down (or pay off back-taxes, repairs, etc).  Lease Purchase is another option - look for houses that have been sitting on the market for 100+ days and call the owner (or owner's agent).  Ask if they'd be willing to get creative to allow you to buy the property with only $20k down.  Remember, all you need is one 'yes' and you're in the game.

    1Reply
  • John A Thompson
    Rental Property Investor · PA · Member since 2019 · 4 posts · 1 vote
    7y

    Sometimes you maybe able to talk a seller into financing a deal. And you may talk a seller into taking 10k down. Or you could get a few friends together and buy something. That would also get you in the game. 

    0Reply
  • Lee Bell
    Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
    7y

    FHA is a beginner loan.

    0Reply
  • Warren Sawyers
    OP
    Nashville, TN · Member since 2019 · 19 posts · 7 votes
    7y

    @Joshua Biondi Thank you for that insight!

    1Reply
  • Yossi Goldstein
    Member since 2018 · 10 posts · 0 votes
    7y

    @Anthony Wick

    You said: Ask seller to contribute towards closing costs, even if it means raising offer price.

    Why would I want to do that?

    0Reply
  • Cirilo Villar
    Los Angeles, CA · Member since 2019 · 97 posts · 38 votes
    7y

    @Joe Villeneuve with good credit you could use an FHA loan and only pay 3.5%-5% DP

    0Reply
  • Isaac Hebron
    Investor · Philadelphia, PA · Member since 2017 · 48 posts · 12 votes
    7y
    @Anthony Wick you never have to live there. Put one bill in your name for 2 months and you are fine with FHA
    0Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    7y

    @Yossi Goldstein

    If you’re short on cash but high on credit, it’s a way to get into a more expensive property. You’re essentially paying the closing costs through your mortgage.

    0Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    7y

    @Isaac Hebron

    Well, that’s mortgage fraud. I would not suggest doing it, and I certainly wouldn’t post about that strategy in the internet. Your post is “People’s Exhibit A”.

    0Reply
  • Jim BlackburnBusiness Member
    Lender · Florida Based (48 states Puerto Rico) · Member since 2017 · 322 posts · 121 votes
    7y

    @Warren Sawyers

    Th best way to start is with these resources here:

    The Financial Independence Blueprint
    https://www.biggerpockets.com/...

    Bigger Pockets Video Library
    https://www.biggerpockets.com/...

    Free How to Invest in Real Estate Webinars
    https://www.biggerpockets.com/...

    The Ultimate Beginner's Guide To Real Estate Investing
    https://www.biggerpockets.com/...

    954-993-1625
    Stairway Mortgage, a Division of NEXA Mortgage LLC598 Reviews
    WebsiteView Page
    0Reply
  • Dalton Riep
    Real Estate Agent · Scottsdale, AZ · Member since 2018 · 8 posts · 1 vote
    7y

    @Warren Sawyers

    If you are willing to do it u can do an fha loan at 10% down and liv in the property for 1 year and then after that move out and rent it out.

    0Reply
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