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Right now I'm looking for consultants to assist me in getting things off the ground. It's just a little difficult. I've found some who are out of state, and I've sent emails to those who are in state.
I'm still confused about the $150,000 credit line. Secured by what? What is the repayment schedule? Do you make enough in your current job to cover those payments? Do you own a home or other property now?
<Find a private lender to finance the start up equity while I seek another lender to finance the property.>
I feel like this is a house of cards that no mortgage broker would ever approve, am I right? Aren't underwriting rules stricter for commercial property?
I'm still confused about the $150,000 credit line. Secured by what? What is the repayment schedule? Do you make enough in your current job to cover those payments? Do you own a home or other property now?
<Find a private lender to finance the start up equity while I seek another lender to finance the property.>
I feel like this is a house of cards that no mortgage broker would ever approve, am I right? Aren't underwriting rules stricter for commercial property?
The repayment schedule would depend on the amount of credit taken out. No I do not own a home or any other property as of now.
Yes I was referring to a business loan in the form of a credit line.
I made a mistake with my words when I mentioned financing. Sorry about that.
I am planning on finding a business consultant to discuss this further with.
This is pretty much my line of thinking. Find a private lender to finance the start up equity while I seek another lender to finance the property. I think I'm wording everything correctly.
You're basically talking about a "borrowed down payment", which mortgage lenders don't do much anymore. I'd argue that the restriction is a good thing - don't forget the big housing crash we just recovered from...
First, NEVER put all your money in one property. At today's interest rates it is almost free money.
In other words - don't put all your money in one property, put more than all your money in one property. That's basically what you are saying...
Quote:
Originally Posted by Restrain
If you are not adverse to sweat equity, a home needing cosmetics can be a great n vestment. Carpet and paint is cheap. Plan on a 20% down payment. Create an LLC and put the home in it. That way you are protected.
As you are a new investor, turn the rental over to a rental management company. Well worth not dealing with the headaches.
Keep at least 6 months of payments for your properties available, putting money back for repairs. Remember that something WILL break, axes will go up, insurance will go up.
Finally, if there is a college with a business school,see if they have an entrepreneurial assistance office.
you must have money to make money. Or you must so well understand the concept of how to make OTHERS some money that they will take the huge risk of giving you their money. You seem to have neither.
Anybody that claims they're going to give you $150,000 in any way shape or form right now probably wants you to wire them $10K for "document processing" or somesuch.
No bank is going to lend you money for an income-producing property where the downpayment is actually a loan in any way shape or form.
Strikefirefall, Looking for a lender is extremely challenging in today's financial environment. Every lender promotes they have the best rates and customer service. You really have to think twice and choose wisely before you get their offer.
It's difficult to just start in real estate investing without much capital or experience. A good strategy to get started is to buy a multi-family, preferably one that you can add some sweat equity, with a traditional mortgage and live in one unit. This will allow you to purchase with a traditional mortgage and lower down payment since it's owner occupied and you can repeat the process in a few years and build your portfolio. Stay with a W2 job for as long as you can and save as much as possible, this will allow buy more property, qualify for financing, and survive the inevitable bumps in the road (combined with a healthy reserve fund).
I'd also recommend being your own property manager and learning as much as you can about doing repairs and maintenance. It can be a pain but it's also a great education if you plan on being in this business and will make you much more knowledgeable when working with contractors or once you turn things over to a manager.
Be careful out there as values are reaching the bubble stage in many areas. Buying a deal that doesn't cashflow and expecting appreciation to bail you out has broken many aspiring investors.
Last edited by truckingbronco; 06-17-2015 at 11:27 AM..
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