Advice for a newbie

[Yancy Dionne]

Hello,

I'm a 38 year old (yes I know I'm old) disabled guy from Louisiana attempting to get financially independent, but I have very little money to put down and I have limited income so I don't think any bank would help me. I have a turnkey house that is at market value  (165k) I'm interested in, but I could talk them down because I'm familiar with the owner, and I know what kind of rent I could get from it (1500-2000). I don't know anyone able to give me a decent loan. Does anyone have any advice, or maybe referrals for a private lender? Because everyone on Facebook are scammers. Please keep in mind I'm still learning, and I would appreciate any advice you offer.

Thanks,

Yancy

[Reid Chauvin]

Hi @Yancy Dionne - welcome! I'm from BR as well. Do you already own a primary residence? I don't know if you are familiar with the concept of 'house hacking' where you buy a place and rent out the remaining rooms and ultimately turn the property exclusively into a rental property, but that is going to be the most realistic way for you to finance a home purchase. You could rent out your other rooms to long-term tenants or to short-term tenants like travel nurses. 

There are low down payment options and down payment assistance programs available for owner occupied purchases, but not for investment properties. Only other options I can think of for someone who has little money to put down would be to find a seller willing to finance the purchase of their home, or to find a relative or partner willing to go in with you on the deal. 

[Yancy Dionne]

Thanks so much, unfortunately I don't own my own home. I live with my parents and my father refuses to even consider real estate (similar to Kiyosaki's poor dad). 

[Wale Lawal]

@Yancy Dionne

Starting in a beginner-friendly investing niche is a great way to learn the ropes before taking on more complex investments. By starting with an accessible strategy, investors can get to know their local market, build a network, and learn how to raise capital without committing to a deal they may not be able to handle. Investors can then use their experience and profits to transition into other strategies down the line.

Here are some real estate investment strategies for beginners to use as a starting point:

Wholesaling: This strategy allows investors to act as a middle man between sellers and buyers. Wholesalers will identify and secure a property under market value, and then assign that contract to an end buyer.

Prehabbing: Prehabbing is the process of positioning a property for resale by adding minor cosmetic updates. The property is then often sold to an investor who will complete a full rehab.

REIT Investing: A real estate investment trust (REIT) is a company that owns and manages income-producing properties. Investors can then purchase shares in REIT and benefit from the profitability of real estate without owning physical properties.

Online Real Estate Platforms: Online platforms help to connect investors with real estate developers. The investors help finance real estate projects in exchange for monthly or quarterly repayments, including interest.

Purchasing Rental Properties: Buying rental real estate is a great way to secure a monthly income stream, especially if you’re ready to be a landlord. If you don’t want to be a landlord, you can hire a property manager instead.

Real Estate Syndication: Real estate syndication is a form of crowdfunding, but with a team oriented approach. Investors pool resources and skills to buy large-scale properties and split the profits.

House Flipping: Flipping house is one of the most popular strategies to get started in real estate. In real estate, the term flipping refers to the process of buying, rehabbing, and then selling a property for profit.

Real Estate Investment Groups (REIG): A real estate investment group is a business that focuses most of its business on real estate. It pools capital from multiple investors to invest in multi-unit or commercial properties.

All the best!

[Lydia R.]

@Yancy Dionne Would the seller agree to a lease option? Or seller finance the property to you? You could speak to a hard money lender who would be willing to lend based on the property. You will need an LLC and some cash to go that route. Another option would be to find an equity partner. Someone willing to put up the money for this deal. Since you have a relationship with the owner and that relationship can result in a cheaper purchase price, you bring some value to the table. I know there is a marketplace section on BP where you can offer this opportunity and look for an equity partner to fund this deal.

[Dave Skow]

@Yancy Dionne thanks  1)  if buying it as a rental - your down payment  will liekly  need to be  15%  of the price  2)  you can use part of the rental income to offset the new  mortgage payment   3)  try getting pre approved with a lender   4)  consider  buying it with a  partner / relative  ( if possible )  ...good luck