All Forum Posts by: Patrick Michael Monahan

I'm new to the real estate game and since I wasn't born rich I don't have alot of capital to work with. The idea I have is what if I financed rental properties with a down payment from a private money lender and then the property loan through a portfolio lender ?. Is this a good way to get around having the money up front to pay for a down payment on a portfolio loan ?. Let me know what you think of this idea.

I'm new to this forum so I'll do a little introduction first. My name is Patrick Monahan im 19 years old and I have been very interested in getting into tge rental home business lately. I have been taking things apart and building different wood and metalworking projects over my whole entire life and am pretty good at doing so. I've also shadowed my dad almost every time something around our house had to be fixed so I think I have a good amount of experience when it comes to these sorts of things. My plan is to buy older homes around my area in the range of $40,000-60,000 that need a reasonable amount of work and fix them up to be rentable and do this to as many as possible. As far as getting them financed I have a particular idea in mind but I wanted to put it out there to see what others had to say about them. My first idea is to finance my first few homes with money from a friend of mine that has a large sum of money from a life insurance policy from the passing of his father. I mentioned the idea the other day to him because he as well is an entrepreneur and would more than be willing to consider most any idea and said he would loan me up to $20,000 at 5% interest over 36 or 48 months and the idea would be to take this money and finance 2 of these homes through lenders that look at the property on a cashflow basis and would finance 90% ltv and include money in the loan for repairs. Is this a good way to get my first rental properties and start getting the experience and cashflow to move onto more properties ?.