All Forum Posts by: Jason Greenway

Okay, I admit, I am one for checklists and getting everything done, then moving to the next step. I am at the beginning of a 'buy-and-hold' strategy. Just want to make sure I get my affairs in order, so I wanna run through what I am gonna be doing, and posing some questions.

1st : File the LLC that will hold the properties (I am assuming LegalZoom would work for this?)

2nd : Get an EIN number and get accounts set up at a financial institution (I heard credit unions are a better bet to do business with, any suggestions in the metro Detroit area?)

3rd : Get preapproved for a loan through a financial institution. (What kind of rates would be 'good' and what would be 'bad' as far as where the market sits right now).

4th : Find a suitable home with a higher ROI (at least 8% is my goal).

5th : Purchase said property

Does this sound like the right way to go? Or am I missing a bunch of steps? Sound off! I need you vets here for help.

@Cary F. Well, first off, I don't have the most amazing credit score, and I have little in the way of collateral to secure a loan. On top of that, I will be buying these properties under an LLC, which is notoriously difficult in this area without a larger down payment.

Well, first off, I don't have the most amazing credit score, and I have little in the way of collateral to secure a loan. On top of that, I will be buying these properties under an LLC, which is notoriously difficult in this area without a larger down payment.

I am trying to figure out the steps in which to take in regards to purchasing my first rental home, and I have a stumbling block.

My question is, I am going to be using a hard money lender to fund a majority of the property (approximately 75%-80%) then do a cash out refinance at the end of the term into a 30 year conventional note. The question being, do I have to have the property under any contract before applying for the hard money loan? Or do I apply for the loan, then pursue the property?

Hopefully this makes some sort of sense. What comes first, getting the financing, or getting the property under a contract? (if so, what kind of contract?)