Who to use to finance rental or flipper?

Question

Good evening everyone, My name Carlos Alvarado I

am new to biggerpockets. Im working on my first flip house.

I was able to come with the cash for this first house. From what

Im understanding is to use a hard lender for flip house but

what about for a rental property? Who would be best to use to

finance when wanting to purchase a house for rental property? Considering

It will be long term loan.

Carlos Alvarado · Answer

Hey thanks alot Brandon. Im gonna start reading asap.
	
		
			Ready to get started. They say your not free unitll your economically free. I believe real estate investing will make you econamically free. Thanks alot.

Ready to get started. They say your not free unitll your economically free. I believe real estate investing will make you econamically free. Thanks alot.

Brandon Turner · Answer

Hey @Carlos Alvarado Welcome! You've definitely come to the right place to learn more about investing. If you haven't yet, be sure to check out the The Ultimate Beginner's Guide to Real Estate Investing and The BiggerPockets Podcast. They are both great at learning the fundamentals.

Also - here's a couple articles you might enjoy:

The 21 Best Real Estate Investing Books Ever

How to Rent Your House: The Definitive Step by Step Guide

Oh - and don't forget to set up your Keyword Alerts!

See you around the site!

Carlos Alvarado · Answer

Thanks Lorraine, good luck!

Carlos Alvarado · Answer

Before walking into a bank, what should I have ready? My credit score should be how much? Cash? How should I present myself? What do I ask? What should I prepare to answer?

Carlos Alvarado · Answer

Thanks Eric, I do have a job w/ w2 but my credit is not at a 700 yet. How much cash should I save up before working on next property?

Erik Hitzelberger · Answer

Carlos, welcome to BP!  Your ability to get financing is largely dependent on your personal situation.  If you have a FT job with W2 income, it shouldn't be too hard to get financing for flips or rentals.  To flips, you will want a renovation loan.  I recommend calling smaller local banks to find this type of loan.  Some (most?) of the bigger banks as well as smaller banks do loans on rental properties.

One thing to consider is whether to put the title / mortgage in your name or in the name of your business.  Bigger banks often require both to be in your name.  (Talk to your attorney about quit claiming it to your business).   Local banks may hold the note in house and allow you to title the home under your business.

There are pros and cons to both options.  I recommend discussing them with your attorney and/or accountant.