How to gain property at a faster rate

Question

I hello bp nation,

Can you give me advice on how to gain multiple property (2or more)in 1 year to buy and hold with let's say 10k of your own money to spend?

Justice Cannie · Answer

The only way I know with 10k which is very little capital. Is to partner with someone that has more resources. Even if you found a seller financed property for 80k, after a DP and closing cost you wouldn't be able to operate.

Account Closed · Answer

10k isn't gonna do much for you in most markets (at least in the western states. I know nothing about the markets in N.H.).  You'll need to get creative.  There is potential to obtain properties with little to nothing down* using lease option and reassignment strategies, though you need to have your ducks in a row if you're going to go this route.  However, these strategies, like anything else, are contingent upon individual markets.  Each market and submarket has their own idiosyncrasies, with which you'll have to become familiar prior to engaging.  *note: Nothing down describes the net amount out of your pocket in certain situations.  It can be accomplished after a reassignment in which the tenant buyer puts an equal or greater amount down after your (investor buyer) initial down payment.

James Wise · Answer

You can bring on equity partners. This is easier said then done.

To successfully bring on others with capital you need to demonstrate to them your VALUE.

Besides capital some things that ad value are:

• Knowledge
• Experience
• Contacts
• Deal sourcing
• Infostructure

Ben Leybovich · Answer

While there are plethora of way to come into control of property with $10,000, the question is not whether you can - it is whether you should... 10k is plenty with which to structure an acquisition. However, once you own it, there may be need for more capital, and then what?

Unless you can answer that question, and there are answers to this indeed, what's the point in buying...

Good luck :)

Daniel H. · Answer

Ben Leybovich has shared various ways to acquire property with little money out of pocket (less than 10k in one case if I recall correctly).

I recommend reading his website for more details.

Sam B. · Answer

The best kept secrete to gaining property at a faster rate....

Get a second job and work more hours.

:O

Joe Moore · Answer

Subject to and seller financing can make it happen.  A lot will depend on the type of market you are in - buyer vs seller market and whether expensive vs lower home market prices.

Steve Vaughan · Answer

I just purchase 2 homes from different owners with down payments of $10,000 and  $8800.  Long-term assumable seller financing @6% with skinny cash-flow.  These were value plays and I plan on selling again in a year or two.  Without other reserves and portfolio cash-flow covering the early repairs and rent-ready costs, I wouldn't have been able to follow through.  The tired landlords that sell this way are rarely selling a pristine property.  After acquisition is another capital outlay, although mine weren't a ton.

$10k is a good start @Teron S. !  Congrats on what you have saved so far.  Keep up the good work!

Walker Seid · Answer

You could buy a house rent to own. You would only have to come up with 5k but you would pay 7% interest and have to be able to qualify for your own financing within 1-3 years. You would probably not be able to cashflow depending on the property. But if you want to buy two houses with 10k that will work.

Andrew Davis · Answer

Hey @Teron S., there are so many ways I could write a book on them.... but someone already has!

@Brandon Turner wrote an entire book on this topic and it's awesome (I don't have any financial interest in referring it).

Wholesaling, seller financing, hard money, private money lenders, partnerships, house-hacking.  The list goes on....

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

Well worth a read.

I wish you all the best Teron, Happy 4th!

How to gain property at a faster rate

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