Obtaining funding to acquire rentals with little to no dwnpmt?

Question

Hi everyone. My name is Cesar. I am a counselor/ therapist by profession specializing in addictions and very new to real estate investing. I live in the Hampton Roads/Tidewater area of Southeastern Virginia specifically Virginia Beach, VA. I am looking to do my real estate investing business here in my local community. I am interested in learning more about real estate investing but am especially interested in learning more about creative funding to rehab and acquire single family and multi family rental properties. Given that I am a beginner I hardly know anyone who is in a financial position to be a private lender when I need one to fund my deals. I am hoping that my joining the Biggerpockets community will enable me to create the marketing and investing network I will need for my business to succeed.

Dena McKee · Answer

Hi Cesar,

I'm a real estate agent and real estate investor in Virginia Beach.  Our  local real estate investing group is TRIG (meetings held in Virginia Beach).  You can find information on meeting dates and times thru meet up or visit the website https://trigofva.com.  It's a great oppurtunity to network and they host speakers and educational opportunities.

I agree with the other posts and I would start with the books and the podcasts on BP.  The information is invaluable.

Thomas S. · Answer

Concentrate on education for now while saving money. House hacking in a multi plex is your best option.

I personally am not a supporter of no money down investing to start as I see a great deal of educational value in learning to save and manage money. Remember when entering business you must be prepared to lose it all if you hope to win.

Saving is a lost art in our world of immediate gratification.

Nicole Graves · Answer

@Cesar Esperat Jr

Congrats on getting started in real estate investing.  I agree with those who mentioned above to read @Brandon Turner book on Creative Finance.  It's even on AudioBooks if you prefer to listen to the book while doing other things.  Another suggestion is to check the page on BP with a list of private lenders for your area and call them and see what they offer.  Wish you well in your investing.

Noelle Yarn · Answer

Hi Cesar!  I think we may have met at a VB Real Estate meet up group for foreclosures!  How are things going?  I am in Virginia Beach and looking to purchase a multifamily in Hampton Roads area rent and live in.  Anyway I hope things are better for you and your family.  My prayers are with you!

Cesar Esperat Jr · Answer

Hi everyone! Thank you for the very warm welcome! This is a lot of information to sort through. But, to be sure, I am seriously reflecting on all your suggestions and recommendations. I do realize that somehow I have got to demonstrate to those whom I look to for funding my deals that I have got some "skin in the game" as should be the case. How I wish that I had enough saved for a down payment. Unfortunately, I am caring for an ailing mother and sister stricken with ALS ergo my sense of urgency. With that being said, I was wondering if a seller would be willing to "finance" the down payment on a multifamily rental property since most traditional lenders will only finance between 70 to 80%. Do you guys think this is a worthwhile proposal to a seller? And if so, what interest rate and for what duration should I propose he/she finance the down payment is reasonable to make it worthwhile for him/her so that the numbers work for me as well work cash-flow-wise? Thanks again.

Michael Wentzel · Answer

@Cesar Esperat Jr

Definitely read Brandon Turner's book. Also read the Ultimate Beginner's Guide which you can find in the Education tab on the top of the page. Listen to the BP podcasts. That should give you a ton of education.

Then you need to take action. Go to some local meet-ups or REIA groups in your area. Offer to help some one out on a few deals (scouting properties, helping with rehab) for free just to gain knowledge and relationships. If you don't have piles of cash or family and friends who are willing to lend, you are going to have to prove yourself before a Hard Money lender or partner are willing to take you on.

Start with the free education on BP and then start networking. You are heading in the right direction and you have found a gold mine of great information and people here on Bigger Pockets.

Mike

Paul Timmins · Answer

@Cesar Esperat Jr

Consider the No Money Down book by Brandon Turner

http://get.biggerpockets.com/nomoneydown/

Paul

Josh Caldwell · Answer

@Cesar Esperat Jr

You are in the right place, start reading anything on creative finance.  You can learn how to but with little to nothing down

to your success

Josh

Sean Ploskina · Answer

@Cesar Esperat JrCheckout BP's articles on house hacking.  That might be your best option unless you have a rich and generous family member. Most private and hard money lenders will want to be see a track record

Obtaining funding to acquire rentals with little to no dwnpmt?

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