New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
As of right now i have 2 rental properties in Youngstown and Niles and closing on 1 more next week. Needless to say my capital is pretty much gone.
I found 2 SFH in the range of 49k-59k I would like to attempt to buy. Buying both at the same time would be cool. One is tenant occupied, so its instant cashflow on one of the properties. How do I get this done with no money or little money down? Are there any options i may not be thinking of? I know of DSCR loans and conventional loans. I know DSCR lenders can only do 75k loans or more. I heard of seller financing and Subto, but i don't know enough on how to structure that style of deal. It seems easy enough on these Youtube videos but I don't know how it works
Im sure i know the answer to my question, but i feel like theres a ton of people here that can give me ideas or know how to get something like this done. Please help!
Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
3y
I came here to say exactly what @Chris Levarek said. Split your time between sourcing properties and private lenders/capital partners. Lots of money out there looking for good projects. Make sure you put together a short presentation or overview the deals you already own as a proof of concept that you can use when talking with potential partners and lenders.
Another option for you is to use hard money into a BRRRR, or a combination of hard money/private money to acquire and rehab deals, then refi into perm financing. Find local hard money lenders at meetups and REIA's in your area. Talk to other investors there about who they use to fund deals.
You could also wholesale/flip some properties to build up cash reserves to allow for more purchases. Flip one, buy a rental. Rinse and repeat - that's how I got started.
Just remember to take consistent, deliberate action toward your goals, whatever they are. Try to sit down for coffee/lunch/beer once a week with someone who is completely new to you in the real estate space.
Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes
3y
Start with 1 maybe 2 niches until you have a solid grasp or have someone take part of your process over for you so you can then move into another niche. Don't try to do it all, figure out what works best for you and the time you have and stick to it.
Start with 1 maybe 2 niches until you have a solid grasp or have someone take part of your process over for you so you can then move into another niche. Don't try to do it all, figure out what works best for you and the time you have and stick to it.
I came here to say exactly what @Chris Levarek said. Split your time between sourcing properties and private lenders/capital partners. Lots of money out there looking for good projects. Make sure you put together a short presentation or overview the deals you already own as a proof of concept that you can use when talking with potential partners and lenders.
Another option for you is to use hard money into a BRRRR, or a combination of hard money/private money to acquire and rehab deals, then refi into perm financing. Find local hard money lenders at meetups and REIA's in your area. Talk to other investors there about who they use to fund deals.
You could also wholesale/flip some properties to build up cash reserves to allow for more purchases. Flip one, buy a rental. Rinse and repeat - that's how I got started.
Just remember to take consistent, deliberate action toward your goals, whatever they are. Try to sit down for coffee/lunch/beer once a week with someone who is completely new to you in the real estate space.
The hard money or private lenders don’t want to invest in my properties I choose because the houses I get are priced around 50 to 70k and with prices like that, they aren’t interested. There’s no real money to be made for them.
a few hard money lenders told me that. I basically need to do a JV with someone willing to put down average 16 to 24k for down payment and closing costs.
I’ll figure it out. or I’ll just wait until I can buy one off the rent I receive from my tenants or wait until I can refinance both properties
Private money can work for this. DM me for details.
Owner finance, this is going to be huge in the next few years. People over paid for their property and buyer pool has shrunk. Owner finance terms are completely negotiable and can dictate your rate/down payment/monthly payment etc...
Still haven't found seller financing that works for me as a buyer. I hope you're that this will become more prevalent in the near future so that I can negotiate better terms.
Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
3y
Quote from @Account Closed:
I offer loans,if you need funding for a project.Am here to help
What's your minimum? I'm investing very close to @George Duchatelier and have the same issue. We're planning on buying a property with a business line of credit and will need to refinance out of it within 6-18 months depending on when the 0% interest period runs out.
I offer loans,if you need funding for a project.Am here to help
What's your minimum? I'm investing very close to @George Duchatelier and have the same issue. We're planning on buying a property with a business line of credit and will need to refinance out of it within 6-18 months depending on when the 0% interest period runs out.
I like Youngstown so much. Lot of great deals. You’re looking at SFH or multi family?
I offer loans,if you need funding for a project.Am here to help
What's your minimum? I'm investing very close to @George Duchatelier and have the same issue. We're planning on buying a property with a business line of credit and will need to refinance out of it within 6-18 months depending on when the 0% interest period runs out.
I like Youngstown so much. Lot of great deals. You’re looking at SFH or multi family?
SFH. When you say "Youngstown," what area are you referring to specifically?
I offer loans,if you need funding for a project.Am here to help
What's your minimum? I'm investing very close to @George Duchatelier and have the same issue. We're planning on buying a property with a business line of credit and will need to refinance out of it within 6-18 months depending on when the 0% interest period runs out.
I like Youngstown so much. Lot of great deals. You’re looking at SFH or multi family?
SFH. When you say "Youngstown," what area are you referring to specifically?
I offer loans,if you need funding for a project.Am here to help
What's your minimum? I'm investing very close to @George Duchatelier and have the same issue. We're planning on buying a property with a business line of credit and will need to refinance out of it within 6-18 months depending on when the 0% interest period runs out.
I like Youngstown so much. Lot of great deals. You’re looking at SFH or multi family?
SFH. When you say "Youngstown," what area are you referring to specifically?
Sorry i read that wrong. I dont know which part of youngstown. Im from FL. I just buy property out there.
Rental Property Investor · Youngstown, OH · Member since 2016 · 58 posts · 45 votes
3y
@Shelley Halleman I'm certainly interested as well. Currently working on a rehab project I'm in the process of closing on and looking for a loan for $30-$40k. How are interest rates or what's the term length for private money loans? Never used one, I always just rinse and repeat with my bank lol
@Shelley Halleman I'm certainly interested as well. Currently working on a rehab project I'm in the process of closing on and looking for a loan for $30-$40k. How are interest rates or what's the term length for private money loans? Never used one, I always just rinse and repeat with my bank lol
1st lien position is typically 12% and a couple points amongst the private money lenders I know and work with. 2nd lien PMLs are generally offered at 15% plus 2-3 points. Depending on your experience, this could be lower, but 2nd position adds more risk, so perhaps not. Let me know via DM if you want me to point you in the right direction for that.
@Shelley Halleman I'm certainly interested as well. Currently working on a rehab project I'm in the process of closing on and looking for a loan for $30-$40k. How are interest rates or what's the term length for private money loans? Never used one, I always just rinse and repeat with my bank lol
1st lien position is typically 12% and a couple points amongst the private money lenders I know and work with. 2nd lien PMLs are generally offered at 15% plus 2-3 points. Depending on your experience, this could be lower, but 2nd position adds more risk, so perhaps not. Let me know via DM if you want me to point you in the right direction for that.
Interesting. Could you advise term lengths at all? Are they similar to the 5-7 year loans banks offer, or are they more of a 1-2 year term since the idea is that it'll be paid off sooner?
@Shelley Halleman I'm certainly interested as well. Currently working on a rehab project I'm in the process of closing on and looking for a loan for $30-$40k. How are interest rates or what's the term length for private money loans? Never used one, I always just rinse and repeat with my bank lol
1st lien position is typically 12% and a couple points amongst the private money lenders I know and work with. 2nd lien PMLs are generally offered at 15% plus 2-3 points. Depending on your experience, this could be lower, but 2nd position adds more risk, so perhaps not. Let me know via DM if you want me to point you in the right direction for that.
Interesting. Could you advise term lengths at all? Are they similar to the 5-7 year loans banks offer, or are they more of a 1-2 year term since the idea is that it'll be paid off sooner?
These are short-term or bridge loans with an exit strategy usually being refinance or sell.