I want to buy a rental property but it seems that because I already have a home on my credit $250,000 it looks next to impossible. How do I bypass this issue? How are other qualifying for these loans when they have multiple other properties? Help!
@Sanya Delgado I see lots of questions like this. It is kind of like asking "how do I buy something I can not afford?"
That said it can be done but it is tough. You need to look for mare creative ways to finance your properties. Some ideas:
- Hard money lenders
- private money (friends, family and associates)
- Owner financing
- Creative deal making like lease options
- Smaller local lenders
- Commercial loans based on the property income
- A combination of the above
@Ned Carey thanks, maybe ill try a small local bank. Is there anything you can recommend with regards to how to pisition myself to get this loan? Should I be saying it is just a second property, or to acquire rental income etc
@Sanya Delgado if you are buying it as an investment property tell them that. Do you have a specific property in Mind? If you do present them with an analysis of why it is a good deal.
Otherwise just ask questions about what their requirements are. The more you know about what they expect the better you can present yourself.