Need Help with Alternatives to Conventional Financing
Howdy BP, first time poster.
I'm looking for advice on how to acquire buy and hold properties without going through conventional loans, mostly because I just simply don't qualify (poor credit from student loans, no W-2, etc).
I just acquired my first property for a fix and flip through a HML here in Texas, and they were great to work with. No credit checks, no income checks, etc, so I was able to get the loan. 12.99%, 4 points, a slew of fees, 6 month loan.
However, to acquire a rental property through them, I would have to get the rehab loan, then move it to a long term loan at 6-7% (20-30 years) along with another 6 points up front. On a $150k property, this could cost me $10-15k+ in fees and points out of pocket with no equity in the property. Most HML's that I know of in the area have about the same conditions.
What kind of alternative options do I have, or is this about the best it's gonna get right now? I would love to start my rental portfolio, but the costs of these deals doesn't seem very sensible. Any advice would be greatly appreciated!