The Book on Rental Property Investing
I’ve always wanted to get into the real estate business, but never thought it would be possible. I knew it could make money, but didn’t think I could get the Loans to make it possible. I was scared to get up and make it happen for fears I’m sure many of you have also had. Here is what got me started and opened my eyes.
My neighbors (right next door) were an elderly couple. I took over mowing there lawn and doing things around their home that they just could not do and I never charged them anything. I would get a gift card every now and then as a thank you, but never asked for anything. They decided that they needed to move closer to family as one of them started to have health problems. They approached me about buying the property. I decided that I would try, so I went online to find someone that does loans and went with a company that does conventional loans. I got all my paperwork for them and turned everything in. I was told that I would need 20% down. I had it as the asking price was only 45k for a house worth 85k. The appraisal came back and I was told I needed to put 30% down instead of the 20% and the closing costs would be around 7k. This was after a few other estimates on what it would cost me and it kept going up.
In the meantime, I bought this book. I actually bought the audio version and after only 2 days decided that I would go to the bank that I have been doing business with for years and ask them. They happened to be a portfolio lender and within a day had me approved at only 15% down and a 15 year loan which I was totally ok with. Buying this home through them took only about a week for title work, closing and everything when I had already been working with the other lender for a month.
I financed about 38k and closed with only about 2k. You can do the math on payments and the property is renting for 1k per month. I HIGHLY recommend this book to anyone wanting to get started in investing in property.
My bank loan officer and I have build a good friendship and he is already asking me when I am going to buy my next property....stay tuned...