Typically, you cannot get traditional financing from a bank to purchase an investment property due to the distressed property's condition. If you are looking for financing, your best bet is to use a good Hard Money Lender. I have a few lenders contacts I would be more than happy to share with you. Will shoot you a PM. Let's talk further!
@Parker Russell welcome to BP, and good for you for being ready to get started down the REI path! I wouldn't jump immediately into the HML pool. They're certainly a good option for those who don't have many traditional financing or private money options. Check around with some local banks. If you can connect with some local real estate investors, see who they're using. Hopefully someone on BP from your area will have recommendations as well. Banks that cater to real estate investors will have very reasonable rates and flexible terms that, IMO, make them preferable to hard money. Smaller, local banks and credit unions tend to be the most flexible because they know the market and are connected with all the local real estate agents and title companies. Just my two cents. Best of luck to you!
Hi @Parker Russell , I would start with who you currently bank with. Try to understand what benefits you can receive based upon certain deposit thresholds. Further, I would try to build a personal relationship with a loan officer. I use a small private bank and one of the large nationals that holds most of my retirement accounts, college savings ect. Every small bank will have a slightly different loan program, so I would get on the phone with as many lenders as you can in the area to understand what sort of programs they offer/what their specific constraints are.
Originally posted by @Parker Russell :
I’m super new here, never owned a home. I’m a fireman in the San Antonio area. My dream is to become a successful real estate investor and as they say, gotta start somewhere.
I wanted to reach out to this great community to begin building my “team”. Pretty sure the first thing I need to do is find out how much I can borrow so I know a price range for my first investment?
I’m wondering what y’all think the best banks or lenders in town are out of curiosity as I don’t really have any direction.
Thanks, much love -Parker
If you're super new and never owned a home, you're in great shape (no baggage)! Your new favorite term in real estate should be "Househack."
Find a multi family property that works for you, buy it and move in. Let the tenant pay a significant, if not all of the mortgage for the house you live in and you can even use a portion of their rent that you haven't received yet to qualify. Use an FHA loan to buy it. That's househacking.
Go to your regular bank first. See what the rates are. Then talk to some loan originators (you can find them at meetups and REIA's) and ask them how rates are doing for FHA. Tell them you've got x credit score and let them see what they can do without pulling credit. If you find one that gives you better vibes than the others, go with them. Also, you could ask your firefighter friends if they know anyone that does mortgages. Chances are they do and they can give you a referral. Referrals are the best.
Best of luck and thanks for all you do.
Hey Parker, I am located in the San Antonio area and looking to begin investing in real estate! Just curious, did you find a bank or hard money lender for investing in the area?