I was looking at buying 4 properties for a total of ~$100k. I don't have enough cash to buy them outright, and at an average of $25k /house it's not possible -from what I can tell- to get a mortgage on them individually. I've looked at blanket loans, but it looks like I wouldn't qualify for those in this scenario because either the $100k loan amount isn't high enough, or it's not enough properties (the blanket lenders I've looked at are 5+ properties). I know I can partner/search for OPM, but was just curious if any of you had any other creative ideas?
Hi Rob, For many reasons I'll lead with suggesting you join one or a few like I did local REIAs where active investors hang to help with on the ground whats working and how to get deals done locally.
You can buy all 4 houses with hard money needing between 10% to 20% down. Hard money will allow you to buy and fix, then individually you'd sell them off retail, or put individual 30 mortgages on each based on an appraisal.
If you don't have good enough job to qualify for the 30 yr financing the DTI calc, then look for portfolio (mis nomer today, they lend on indivudual houses), other sources of softmoney (non-bank) that lend based on DSCR, IE the rental performance, not your credit or job.
BP stupidly doesn't allow posting phone numbers, you need to google
Hardmoney in Atlanta (many many more, join a REIA).
- Paces funding
-Brasswell capital solutions
others that get refered in the REIA I'm in.
Portfolio / softmoney for the 30 yr financing:
- Brasswell capital solutions
- Finance of America
- Equitable Consulting
@Curt Smith Thanks for the info, I'll check it out.