How to finance deals?

Question

Hello everyone,

My name is Anthony Rios. I am a military veteran currently living in Orlando, FL. I am a student at Rollins College in Winter Park. I am completely new to real estate investing. I have taken the beginners course on BP and listen to podcasts daily.

I want to invest in multifamily units and would love to learn more about nontraditional financing that could be used to acquire those properties. I am currently working on saving much of my military benefits to invest when I graduate and get a job. I have found it somewhat difficult to find multifamily units in the central Florida area that are not in bad neighborhoods.

I would love to meet up with investors in the area.

Rene G. · Answer

Anthony,

I'm also a Vet. Thank you for your service. Though I'm not in the multifamily space (yet), I have a few single-family homes that I purchased with deployment money. Let's grab coffee sometime. I'm located in South Orlando. You can private message me for the details.

Andrew Syrios · Answer

I would look into syndications if you're planning on buying large multifamily.

Stephanie P. · Answer

@Anthony Rios

Welcome to BP and thank you for your service.

If I were to give you any advice, it would be to find units, use FHA to finance it because the down payment is small and then live in it for at least a year.  Then I would purchase units again (again you have to live in it for at least a year) with my VA entitlement.  The rents should much more than cover the mortgages on the properties with units and you've used the least expensive money to begin to build your empire.  Refinance the FHA property into a conventional loan to get rid of the mortgage insurance if the rates are still favorable and you've got enough equity in year three and buy another one with 3.5% down using FHA (again, you must live in it for at least a year).  Then refinance the VA property in year four and find another property with units and buy that one.

Lots of moving around, but it will be worth it.

Stephanie

Tarik Turner · Answer

Welcome and thank you for your service

Camilo Rey · Answer

Hi Anthony Rios, thank you for your service. In my opinion, you should share your history with friends and family. Probably they want to invest with you and the interest rate will be lower than other places.

John Thedford · Answer

Welcome to BP. Almost every new investor says the same thing: they want to invest in MF. Take one step at a time. If you can find great deals in SFR grab those. Other sources of funding are available such as private money (friends, family, etc) as well as HML but HML is generally short term, high rates meant for flipping and not buy and hold. I just purchased a rental and I found the money by advertising on CL. I got a pretty good rate (much lower than typical HML). Start putting your feelers out for lenders so that when you find a deal you have sources for funding.

James Wise · Answer

Welcome to the site @Anthony Rios

Anthony Rios · Answer

Thanks Andrew. I have not actually looked into syndications because I do not know a lot about them so I will research them some more.

Anthony Rios · Answer

Thank you very much Stephanie. Living in there for a year is what I am planning on doing. I am currently looking for creative financing because since I am still in college I do not have the work history that they are looking for in traditional financing.

How to finance deals?

Most Popular Reply