Financing Options - Engineer

10 Replies

Hi All,
My name is Nicolas Sandoval, full time Design Engineer out of Southern California and I cannot believe the POWER of bigger pockets networking. Within 1month in this site I was able to close my first deal in Cleveland OH. AMAZING!!!! for a second I underestimated the power of BiggerPockets.

Im now looking for the second deal but unsure about financing options.
My first deal was all cash but thinking about financing the 2nd deal.
I hear that given my job status (Engineer for 5yrs with stable company) and financial situation, it is a good idea to leverage my credit with a bank???
Not sure on the best option, any feedback would be greatly appreciated...


Congrats Nick!

If your are purchasing SFR's, I would recommend that you refinance your first purchase with any legitimate lender and pull the cash out of that home. Then, use that cash to purchase your next property. Once the second home is purchased, repaired and leased up, refinance that home and use the cash to purchase a third. Rinse and repeat.

Please note that you should only cash out what the NOI of the property can support.

Good Luck,


Congrats on your first deal! Definitely leverage your capital with a local bank. Consider an FHA loan!

@Jesse Valencia
Appreciate the feedback, interesting and appealing strategy you bring up.
The property is paid off. Would you recommend to Refi vs HELOC?

Either way would work. If you are looking to continue to accumulate properties, I would refinance due to the current low interest rate environment and lock in now. HELOC's work well too; however, you will be open to a future rising interest rate environment.

america wasn't build with cash purchases.

@Nick Sandoval

Hi Nick. I'm living and investing in the Cleveland area. I happen to know a very investor friendly lender who works specifically in the Cleveland market. He can do 10+ mortgages per person AND low down payments for non owner occupied properties.  Shoot me a message if you'd like an introduction.

Plus if you want to talk finance in general, hit me up. I can tell you the impact of using leverage vs using cash to buy investment properties.



@ George P. - Sounds like Donald J. Trump apply that principal to the T and likely built most or all of his towers/hotels.

@Cary Ferguson Jr
Thanks for the info.
Definitely interested, I don't see your contact info. Can you provide your email?

Hi @Nick Sandoval , and welcome.

What @Jesse Valencia said is spot on. If you have the ability to purchase all cash, and get the mortgage after the fact... cash buyers (don't tell any of my mortgage broker buddies I admitted this :P ) often get discounts because of the fast/reliable closing. 

Best execution: 

  • Familiarize yourself with the delayed financing exception so you don't have to wait six months.
  • Get preapproved for the cash out refinance, and actually get the cash out refinances process started, before you even close escrow on the purchase. 

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