I can’t figure out financing

4 Replies

I am trying to understand how to finance properties as I am brand new, and I haven’t had my ah ha moment yet.  My wife and I recently purchased a home so that we have a nest to stay in, but now we are looking to start generating somE passive income for our newborn baby.  

What would be the best course of action to afford rentals. I want to buy fixer uppers and put in some sweat equity when I'm first starting out, but I definitely don't have the cash to put down a huge down payment as well as rehab costs. How do I go about this?

Also,  won’t banks stop doing business with you loan wise once you own a couple of properties?  How do you get past that!? 

@Parker Staten Rish Have you heard about the BRRRR method (popularized by @Brandon Turner ). If not do a simple search on here or Google. It's a very lucrative strategy that sounds like it would fit your goals. 

I wouldn't worry too much about getting financing past 5-10 loans. Most investors never make it that far so I wouldn't spend too much time trying to optimize that right now. Your time would be better spent finding a great deal that you can add sweat equity too. 

Best of luck!

@Parker Staten Rish You don't know what you don't know. Don't get ahead of yourself. Finding a good deal, fixing it up, and being a landlord is not passive. Once you find a deal, take the contract to your bank and they will tell you what you need to do. By the time you have 4 properties, you will know what to do for the 5th property. If you don't have money or time, real estate investing will be very difficult. If you have one of them, it's doable. If you have both, it's very easy.

I have time but not a lot of money! @Anthony Dooley that was the best answer I have seen to any of my questions on this website thank you so much. So what I need to do is find a good deal. Take it to the bank and show them the numbers and what I want to do. Then receive financing, brrrr it, and reap the rental income plus financing income. That helps me so much!