Need advice on creative financing
Investor · Austin, TX · Member since 2022 · 68 posts · 52 votes
Current situation: I live in Austin, TX and have an investment property in Atlanta, and almost closing on my second one. Both are $250K, and I'd to put 25% down which is $62K for each.
Problem: Though I'm almost proceeding on the loan for property # 2, my lender (mortgage broker) has started bringing up words like cash reserve, DTI is more and stuffs like that. He says increase your annual base pay
Question:
- People who are still having a W-2 job like me, how are you scaling your portfolios?
- Do you need to come up with 25% down every time to get a property?
I see terms like use OPM, buy RE with $0 down, but none of those gurus tell the actual idea without me enrolling in their $2000 master course - which I don't want to.
So, finally, coming to this BP community to learn more about creative financing, how to grow/scale my portfolio. Thanks all in advance.
Current situation: I live in Austin, TX and have an investment property in Atlanta, and almost closing on my second one. Both are $250K, and I'd to put 25% down which is $62K for each.
Problem: Though I'm almost proceeding on the loan for property # 2, my lender (mortgage broker) has started bringing up words like cash reserve, DTI is more and stuffs like that. He says increase your annual base pay
Question:
- People who are still having a W-2 job like me, how are you scaling your portfolios?
- Do you need to come up with 25% down every time to get a property?
I see terms like use OPM, buy RE with $0 down, but none of those gurus tell the actual idea without me enrolling in their $2000 master course - which I don't want to.
So, finally, coming to this BP community to learn more about creative financing, how to grow/scale my portfolio. Thanks all in advance.
There is so much available on youtube regarding creative financing it has replaced "funny cats" in popularity.
Generally, yes you put much more down if you are W2 and going a "traditional lender" route. It does slow things down a lot. But, usually you are buying from the MLS with an agent's help so you are spending less time on each puchase.
It is a lot more work to find "off market" deals that make sense, with sellers who will do creative financing. It's the repetitious phone calling to find those deals that wears people out.
People want the benefit of creative financing without having to do the work.
I think I heard that less than .0001% of people who sign up for those guru classes follow through and actually do a deal. Most people join the groups and end up being investor wannabes who feel better because of the hype.
I got started years ago by buying a book called "Nothing Down How To Buy Real Estate Little Or No Money Down" By Robert G. Allen which now sells for less than $10. and, if you don't read, use youtube
Current situation: I live in Austin, TX and have an investment property in Atlanta, and almost closing on my second one. Both are $250K, and I'd to put 25% down which is $62K for each.
Problem: Though I'm almost proceeding on the loan for property # 2, my lender (mortgage broker) has started bringing up words like cash reserve, DTI is more and stuffs like that. He says increase your annual base pay
Question:
- People who are still having a W-2 job like me, how are you scaling your portfolios?
- Do you need to come up with 25% down every time to get a property?
I see terms like use OPM, buy RE with $0 down, but none of those gurus tell the actual idea without me enrolling in their $2000 master course - which I don't want to.
So, finally, coming to this BP community to learn more about creative financing, how to grow/scale my portfolio. Thanks all in advance.
There is so much available on youtube regarding creative financing it has replaced "funny cats" in popularity.
Generally, yes you put much more down if you are W2 and going a "traditional lender" route. It does slow things down a lot. But, usually you are buying from the MLS with an agent's help so you are spending less time on each puchase.
It is a lot more work to find "off market" deals that make sense, with sellers who will do creative financing. It's the repetitious phone calling to find those deals that wears people out.
People want the benefit of creative financing without having to do the work.
I think I heard that less than .0001% of people who sign up for those guru classes follow through and actually do a deal. Most people join the groups and end up being investor wannabes who feel better because of the hype.
I got started years ago by buying a book called "Nothing Down How To Buy Real Estate Little Or No Money Down" By Robert G. Allen which now sells for less than $10. and, if you don't read, use youtube
Creative financing is the way to go. Right now is the time to subject to these loans with very low interest rates. A lot of people in Austin over paid. Take a vantage of that.