Financing my first rental property

9 Replies

Hi all!

I have been marketing for several months now, sorted through multiple leads, and am looking to purchase my first deal! My original plan was to wholesale my first several properties, but I really feel this one I've found would be great as a long term rental. Ideally, I would like to avoid getting a loan from a bank, and would rather find a private investor or partner to share the deal with that could buy with cash.

I've been searching for some time but haven't found anything. Does anyone know of a private lender or willing partner in the Fond du lac or Fox Valley area that would be interested in hearing about my opportunity?

Thanks in advance for the help!

I am in the same boat - looking to purchase my first property.  

From the research I've done so far, if you can qualify for a traditional mortgage with a bank and have enough money for a 20%-25% down payment - go that route.  Interest rates are incredibly low.  

It seems that with trying to find a private lender who you do not have an existing relationship with, they will want to see that you have experience in real estate before lending you tens of thousands of dollars.  

My plan is to get several properties through conventional financing, and build a small portfolio before going out and marketing myself to private lenders.  Or if I try private money early in the game, talking with a friend or family member with $$ who I already have trust with.

Just my $0.02.  I'm sure others with more experience can speak more.

Hello Raeann,

Are referring to buying turnkey properties or distressed that require rehab?

Originally posted by @Raeann Baumgartner :

Hi all!

I have been marketing for several months now, sorted through multiple leads, and am looking to purchase my first deal! My original plan was to wholesale my first several properties, but I really feel this one I've found would be great as a long term rental. Ideally, I would like to avoid getting a loan from a bank, and would rather find a private investor or partner to share the deal with that could buy with cash.

I've been searching for some time but haven't found anything. Does anyone know of a private lender or willing partner in the Fond du lac or Fox Valley area that would be interested in hearing about my opportunity?

Thanks in advance for the help!

Sounds like you are off to a good start! What market are you looking in? Are you staying close to home or looking elsewhere for a different sort of ROI?

@Bob Green this particular property could be rented out as is after purchase, however if financing allows there are a few minor updates I would make to it!

@Tom Ott Thanks! Since I live in central Wisconsin and I'm fairly new to the industry, my goal is to stay in this area for property purchases... unless a great opportunity is presented elsewhere! 

@Raeann Baumgartner

I agree with what James said - conventional financing will always be cheaper than anything else you find (interest-rate wise). If you have the down payment cash, you will not find a better option. Once you start maxing out on your conventional mortgages (somewhere around 10, perhaps), then you can look at other options.

@Raeann Baumgartner  Go to NEBAT on Main st in FDL, go talk to Jeff Hayes, se what they can do for you, get the Commercial relationship started, I've Known Jeff for years, he will be honest about how the bank sees you, their rates may be a bit higher, but they can make things happen in your investing, I have worker with them for many years. they have been good to me.  I have since Moved, and no longer have accounts with them. 

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