I've run into a couple of great opportunities on 2 multi unit rental properties that are already occupied and cash flow positive.
The issue is that my available funds would not cover the down payment on either of these properties. They are both reasonably priced.
What are some of the best options for taking advantage of this kind of find while low on cash? Im willing to get creative on financing.
If you can't swing conventional financing, Owner financing is probably your best option. I'd ask the seller if they would be open to it - depending on their level of sophistication you may need to phrase it differently and explain the advantages of smaller amounts of income over a longer period of time. Sellers will often still require a down payment, but they are generally more flexible than banks.
If you do need to raise capital to get your career going, friends & family are usually the best starting point. Once you have a few deals under your belt and some income coming in, you should be able to get a local bank to loan you some capital.
@Drew Brashier be more specific on "cash flow positive." Do they meet the 2% rule? I agree with Christopher, owner financing or friends or family. You can also wholesale it, I personally don't have any experience with whole selling so you'd need to find someone who does to learn how to do it. I have a property manager/realtor who's also an investor in Charlotte NC I can send you to if the deals are near there.
@Drew Brashier , let's see: you "ran into" them by way of a smooth-talking Wholesaler, right?
And you're inclined to believe the pro forma numbers as presented to you?
"Reasonably priced" does NOT mean they're bargains! Are you experienced at "due-diligence"?
Nonetheless, if they've given you incentive to get ready QUICKER for next time - all good.
If you can't convince family/friends/Lenders to help you NOW - they may be doing you a favor!...
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.