Is it the right time to invest?

Question

Hello everyone. I have a full-time job, but recently became a real estate agent to get the ins and outs of getting the best investment homes + make additional side income.

My goal is to purchase my first investment home, thinking multi-family rental property (probably 3 units) near my area are around $150,000 and not enough funds for an the required 25% down on an investment loan. Should I try to work with a hard money loan? What am I risking by doing so?

I am dying to get to financial freedom, and have to start somewhere. Please help!!

Brandon L. · Answer

@Mayra Perez  being a real estate agent offers you unlimited earning potential, but it takes a lot of consistent action to implement systems that will produce consistent income. You are only limited by how hard you work, and your ability to stay consistent and improve.

If you plan to use the investment property as your primary residence you will not need a 20% down payment. I suggest speaking with a connected mortgage broker so that you can learn about all your financing options.

If you have any questions feel free to ask.

Mayra Perez · Answer

@Brandon L. That is the main reason I became a real estate agent, earn income while learning about the business. I purchased my primary residence in 2017, therefor I do not qualify for an FHA loan.

So now, whether to keep on trying to save money, or make the leap and try to get a hard money loan?

Brian Midden · Answer

@Mayra Perez

Are you needing the hard money to fund it while you fix it up? If so, then I would call some hard money lenders and get rates and then calculate your cost. Then you can do the BRRRR method.

But the risk with hard money is that it’s expensive. But the risk without hard money is losing the deal.