That didn’t go as planned!

152 Replies

I'm not in that market, nor do I know anything about that market, but from listening to the BP podcasts, I hear time  after time, if you can't find a deal in your market then look elsewhere. If Orlando is too expensive, go a distance away from there to find the less expensive properties. You could always work your way closer to Orlando once you have reached some level of success if you like. Now that doesn't solve all of your problems, but maybe eases the financial strain a bit if you're dealing with a more affordable house to begin with. 

All the best!

You can use 75% of rents to help you qualify with a conventional loan. This is huge with increasing your pre-approval amount. Find a lender in your local area who does a lot of 2-4 units and they can guide you best.

Other options. Family co-signing you. I just had a client who only made 30k on paper because most of his pay was commissions and lender could only count the 30k base due to not enough commission income track record. Client had his mother co-sign which opened us up to all the pricier neighborhoods and we got him in a nice property. 

@Adam Mittermeier Yeah trust me I listen to BiggerPockets Podcast for hours and I’m actively reading three real estate books right now. There is a lot of great information. Biggest thing I’m not getting is the whole funding thing. Might need to get The other book about low or no money down. Thanks for the feedback.

Find a private lender or a money partner who believes in you.  There are peer-to-peer lender "services" out there.  BP rules prohibit me from listing any, but if you do an internet search, you will find them.

If you can come up with the money to put down, (bring past due payments current) a great lead source is pre-foreclosure owners. These are homeowners facing imminent foreclosure. You can structure a subject to deal with these owners, and have an attorney that you trust hold your payments in escrow and send them directly to the mortgage company on your behalf. NEVER trust an owner to make the payments! You also have to be careful not to trigger the due on sale, acceleration clause. This strategy might take some time, and will definitely take some research, however, it can pay off big. I'm not sure how foreclosures are handled in Florida, but, if a legal notice has to be filed prior to the foreclosure sale date, that is your lead source. Do some skip tracing to find the owners' phone numbers and start dialing. Driving by the homes will give some additional insight as well, and I'd focus on pre-foreclosures that are vacant. Those are GOLDEN opportunities!

Hello Branden! You mentioned how you would add value to a partner. The value you already bring to the table is the fact that you are a contractor. You can rehab the project yourself can't you?

With that said, go to a meetup and just be you. Talk about what you are looking to do. Don't talk about what you can't do at this time with your current situation. I hope this doesn't come off the wrong way, I completely think you are asking the right questions here in this forum. 

At times you come off like you really doubt yourself. The current plan you have and vision for you and your wife is a great plan. Just do more research and attend some meetups. What helps a lot is talking about you vision with any and everybody. Invest in yourself and remove your doubt. Hope this helps and I'm looking forward to you landing that duplex. God bless!

Originally posted by @Branden Sewell :
I reached out to a lender and I was told I had to have capital of my own. I thought you didn’t have to have capital? He told me any lender is going to require me to have capital. He basically told me to save up some money and try again. It could take me a few years to save up that kind of money.

How the heck am I supposed to get started with no capital. People make it sound like people just hand over money to help with funding a deal but I’m just not finding that to be true.

Anyone have some real advice on this? Or am I just not looking in the right place for funding?

Help me get creative!

 Hey Brandon,

I'm assuming you're talking about a flip or short term financing type deal. Lenders still want to make sure their money is safe. They want to see all 3- money, experience, and the deal's gotta be solid. How many of these did you offer up in this situation?

If you don't have much money or experience, it better be a screaming deal. If you can hunt down a solid deal, maybe grab a partner on it. 

Everyone's going to want to see some of your skin in the game, brother. Or else you could pick something up with all of their money and say "eh, screw it, I can't do this flipping thing", and bail with little to no immediate consequence to you. Then they're stuck with the property, and trying to come after collateral if you don't have your own skin in the game. Collateral that they probably don't think you have.

People are making it sound too easy to get into this game. This is real business and has to be treated as such.

@Elliott Elkhoury So true, I guess I was misled into thinking people just jump in if you have a deal. I’m definitely learning a lot through this forum though and my time will come. I think I might get my real estate license and sell some houses on the side to bring in some extra income so I can get into the game for myself. Looks like that might be my best option for getting the capital needed to move forward.

You have a couple good options since you will be living in the home. If down payment is your problem look into USDA type loans that could be 100% financing. You and your area would have to qualify for this type of loan, and it can only be a single unit but would be a great way to start buying. 

Purchasing a duplex or up to 4 units would be ideal but the best loan type for that will be fha and it will require 3.5% down and the money has to come from the buyer or a gift from someone. If you are buying something that needs fixed up you can use the 203k but you do have to live in the property for that. I have been an agent and a contractor on these types of loans.

If you want to purchase an investment property with no money down, you would most likely need bank financing which may be 80%, and then bring an investor on to give the 20% (these %'s can change but this is to give you an idea. Finding these investors can be the problem, unless you can find the right deal and show them how they will make money on their investment. 

The best advice I can give is to listen to the Bigger Pockets Podcast, they give tons of great ideas and education on this topic. Best of Luck! Aaron

@Branden Sewell build that seed fund! Sell some homes if you can become pretty good at it. Do a little bit of wholesaling if you can find a way to compete in your marketplace. Stack up and make it happen, and don't rush. Everything starts slow, but if it's done right it builds fast after you've got the ball rolling.

@Branden Sewell The overwhelming advice is to get FHA 203k loan and find a 2-4 unit building that you can add value to. That is the path of least resistance. TIME TO GO DO IT!
@Walter @Aaron Poling Thanks! Yes the biggest problem right now is money down. I’m trying to get creative to get something rolling. My goal is to get my first deal done by the end of the year so I have make moves. I’m determined to find a way and all this amazing feedback is helping a ton!
@Branden Sewell look into down payment assistance programs. I was able to get into my home for like 2k out of pocket on a 157k townhome. I could have done similar for a duplex but couldn't find one in the price I wanted. That may help bridge the gap for you.