Looking to start real estate investing

[Jason Ouellette]

I have some properties in mind that I think would work well (both short and long-term) but I don't have money for down payments. Advice on getting started? Two properties already have tenants and the other has a strong short-term rental history with property management already in place. One property is in Charleston, another is in Fort Worth and the other is local to me in Maine. The one in Maine is a 3-unit while the other two are singles.

[Matthew Morrow]

Quote from @Jason Ouellette:

I have some properties in mind that I think would work well (both short and long-term) but I don't have money for down payments. Advice on getting started? Two properties already have tenants and the other has a strong short-term rental history with property management already in place. One property is in Charleston, another is in Fort Worth and the other is local to me in Maine. The one in Maine is a 3-unit while the other two are singles.

 It sounds like you have some promising properties! Since you're looking to get started without down payment funds, consider exploring options like seller financing, where the seller may finance part of the purchase, or looking for partners who might invest with you. Additionally, you could explore leveraging equity from your existing properties if possible. Another option is to seek out creative financing solutions or grants that assist new investors. Connecting with local investors or real estate groups can also provide valuable insights and potential partnerships. Good luck!

[Michael Smythe]

@Jason Ouellette start looking for seller financed deals, but these will still require money down, or get them under contract and wholesale them to other investors.

[Jesse Brooks]

As everyone else is saying, seller financing is probably really going to be your only option for 0%. You potentially could do a partership with someone who could supply the money for a downpayment. This won't work for urban areas or non-primary residences, and would have to be single unit, but if you'd consider doing something like a live-in flip you could look at USDA:RD loans and then refi to hold or just sell. Something like a USDA live-in flip might get you the capital to look at a 5% down multi or something of that nature.

[Katie Smith]

Hi Jason! It sounds like you’ve got some promising properties on your radar! If you’re short on down payments, here are a few strategies to consider:

Leverage Equity: If you own any properties with equity, consider tapping into that through a cash-out refinance or HELOC to fund your down payments.

Seek Joint Ventures: Partner with other investors who can provide the down payment while you manage the property or contribute in other ways.

Explore Creative Financing: Look into options like seller financing or lease options, which might require less upfront capital and can be structured to fit your needs.

Consider Private/Hard Money Lenders: These lenders can offer flexible terms and quicker approval compared to traditional banks.