First Multifamily Property Financing

[James Potter]

Hello all! This is my first post on here and I’m stoked to engage with all of you and ultimately provide value to the forum! My wife and I are preparing for our first RE investment property - most likely in Q3-Q4 2023. We have never had a mortgage. We bought our home and 5 acres for $90k cash off an auction in 2018 and have put ~$150k cash into rehabbing it. Given this, although we don’t quite have the capital for a 20% down payment, we do have solid credit and W2 income. I know there are several ways to leverage our free-and-clear house. Any suggestions on potential creative financing; recommended lenders; etc..; would be greatly appreciated!

[Devin Peterson]

Quote from @James Potter:

Hello all! This is my first post on here and I’m stoked to engage with all of you and ultimately provide value to the forum! My wife and I are preparing for our first RE investment property - most likely in Q3-Q4 2023. We have never had a mortgage. We bought our home and 5 acres for $90k cash off an auction in 2018 and have put ~$150k cash into rehabbing it. Given this, although we don’t quite have the capital for a 20% down payment, we do have solid credit and W2 income. I know there are several ways to leverage our free-and-clear house. Any suggestions on potential creative financing; recommended lenders; etc..; would be greatly appreciated!

 HI James!

First off, congrats on all the success thus far and welcome to the game! There are a million ways to get started. From a mortgage perspective - if you have a free and clear property they best way to scale quickly is through house hacking FHA loans. Do this every year until you cant anymore. You will have to refi out of one to acquire the next is most situations but this is a tremendous way to scale one at a time using only 3.5% down payment. Once you have built up your portfolio from this strategy you can cash out and starting purchasing investments using DSCR products. The best thing ever. No income, no employment, just asset based lending. Make sure you have a set a strong foundational frameworks (Models and numbers with important KPIs) that track and anticipate the performance of your investments. Feel free to reach out and connect for any questions. Gl!