Rental Property Investor · Loganville, GA · Member since 2014 · 20 posts · 2 votes
I’m looking to get my first investment property in the Macon Ga market, but not sure how to get started with finding financing. Most of the properties I have been looking at are $50k and below, but most need middle to significant work to be livable. Is a hard money loan to buy and fix up the best route or are there options to get funding that will cover the purchase and rehab of the property? I may have left out some other important pieces of info, but I’m ready to jump into the game and start to build my portfolio. Any advice is GREATLY appreciated.
Investor · Jacksonville, NC · Member since 2018 · 193 posts · 107 votes
5y
Hard money may be possible, however some lenders have a minimum loan amount for the purchase and rehab of a property, you would just have to make sure you are above that minimum amount. Besides that, it depends on the numbers, specifically rehab costs and ARV. Hard money is expensive, but using the BP calculators you can plug and chug to see if the deal is workable.
You can also look at using private money from a friend or family member, bank financing if the property meets their criteria, or even look into JVing. When starting out, some people can find the deal, run the numbers and then present it to a potential partner at an REI group, FB forum or even BP!