Ways to purchase rental properties w/o a conventional loan

4 Replies

Hello,

I am looking for information on any and all ways to get funding to purchase rental properties besides getting a conventional loan. When I first started investing I decided to use my own money to buy and sell properties at auctions to build capital. That capital would then be used for buy rental properties here in Vegas for passive income. I thought by going about things this way I would never have to get another loan. My first experience with conventional lending last year was down right ridiculous and now that I think about it possibly criminal. Yes, it was that bad. I am finding that going about raising capital in this manner takes large chunks of money that cannot be freed up till the property sells. So after the third property that would have been a great deal but I missed out because most of my money is tied up, I thought maybe I should give OPM another chance. I am aware of hard money but that doesn't seem like a good idea for a long term loan. Any advice or info would be greatly appreciated.

I recommend doing seller finance option for long term properties if the conventional loans are not in your strategy.

You're right about Hard Money, too expensive and most, if not all of them, will not do long term financing.

Good luck,

Hello Marie.

Can definitely pick up quite a few homes with seller financing options, as Cameron Mentioned, looking through the FSBO sites. For sale by Owner websites, classifieds and checking in with your local realtors who may know or have any leads on Owners willing to offer private, simple interest financing options in your area. Most will require between 15% to 25% down. Some Rehab/Investors are willing to offer Private financing options.

Here are two links you can start with:

http://www.forsalebyowner.com/homes-for-sale/

http://fsbo.com/

Not promoting any site in particular, just giving you a Little head start if you haven't inquired about for sale by owner sites. Some are free to an extent, others may charge a small to modest fee.

Hope this helps a bit. Wish you well.

Whenever possible I love doing personal properties. Less capital, easier process and cheaper interest rates. Yes you have to move into them but this allows your capital to go farther. We mix this with investments. We invest in class A properties so all of our personal properties are investments any ways. Personal properties just happened to work very well with our investment strategy.

While getting conventional loans are a pain, for me personally it is worth it in order to be able to leverage my capital.The key to our success has been finding an amazing mortgage broker that is very competent and works well with me.

Thank you all,

I did not even think to consider FSBO. I am going to look into that this weekend.

Marie