New investor here in San Antonio. Looking to talk with a few local banks/lenders to see where I stand on financing before I purchase my first deal.
I'm looking for portfolio or private lenders since I know I won't qualify for typical conventional financing.
I am self-employed as of Nov. 13' (less than a yr.)
Made $20k last year for the two months having the business (own real estate company), made approx. 120k this year but haven't filed taxes yet. I assume this limits the type of funding I could qualify for.
800 credit score
I have $70k cash saved.
I have a 401k from my last employer that I was reading (on BP) I could move over to a self-directed 401k and pull either 50% or 50k as a loan (which I have around $75k in so take out around 37k).
12k in an IRA
I also have around $130k equity in my home (Owe $270k on $400k valued home).
I'm looking to get into flipping and/or buy hold rentals. If I buy/hold I don't know if using all cash to purchase is wise since I could likely only get one home which I don't think is the right strategy for growing portfolio the fastest... But I also don't know where to start if I were to look into getting funding.
BP, I feel like I have a good base to get going but I need your help to figure out the best way of using this base to my advantage. I'm 28 years old so I'm in this for the long haul, not just trying to make a quick buck. Thoughts?
Don't know any private lenders. I think you might try conventional with your credit and investments. Worth a try. SWBC seemed pretty investor friendly locally but I haven't done a loan with them yet.
Hard money is more expensive, but quite a few of them are very flexible, it's just a matter of finding the right ones. If the deal works even with the hard money fees, then it's a good deal either way; you can also do a search here on BP and find quite a few folks. I'll shoot you a PM with contact info for my HML, perhaps you can make something work with him. Good luck, and let us know how it works out for you.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.