Updated about 6 years ago on . Most recent reply
How can I finance cheap rental property?
Hi All,
How can I finance a $53,000 rental property? Good credit, 20% down...would prefer to go conventional so I contribute my down payment + closing costs only, recoup, repeat (cash flow would be AWESOME on a $300/month mortgage payment). All of the online lenders I've tried want the property to cost at least $64,500 which makes no sense to me...they'll pre-approve me for $155K but not $53K? Madness!
How can I get this deal financed?
Most Popular Reply
A good alternative is to find someone that had a self directed IRA that is willing to lend you the money. They act as the bank and are in first position just like the bank. To protect you both go through the same procedures to close the transaction procuring title insurance, hazard insurance with the lender as the insured ,etc. You create terms based on what the lender/IRA holder desires and of course what makes sense for you. If you are not plugged into your local real estate investors group or meet up you are making it harder on yourself. That is a great way to meet people with money to lend and a great way for them to get to know you. Another option is to always ask the seller if they are willing to seller finance all or a portion of the sale. Don't be afraid to ask what they are going to do with the money. Sometimes they only want to pay a bill or two or buy a car or boat and they just dont need all the money down. Maybe they are a burned out landlord and just dont want to deal with the tenants any more. Find their pain point and fix it. You would still go through the same closing process.