Wanna Bounce a Real Estate Question off to the Fam

[d_the_inc]

Recently bought my primary home 7 months ago with 3% down, and I'm looking to buy a 2nd home(investment) for little money down...my credit is solid, I've hear that banks require upt to 20% down for rental properties...not a problem, but most of my cash is tied up in investments....Is it possible to leverage my credit for a very low down payment? or should I look to take out a home equity line of credit against my primary property(don't believe I've built up enough equity) or should I take advantage of these two 0% offers from my credit cards, buy the property and take advantage of 0% interest for a full year...The answer seems obvious, but I'm a newbie at this, so I'm looking to get some input from the troops.

 

[deputy dawg]

lots of variables-where you are buying, what you intend to buy (single or multi property), do you intend to hold or flip 2nd home right away?

whatever you do, your profit margin is actually set when you buy, not when you sell. be sure to buy investment properties as low as possible.

best way to buy low is to look at distressed properties (worst house on a nice street that you can buy really cheap, clean up a little bit and resell to another investor for a quick profit. or if you're in it for the BIG deal fix it up nice to appeal to someone who will buy and live in it. (that's how I do it)

a nice property with an owner in a financial bind and is highly motivated to sell is another way to buy low (lower than through a realtor or broker). or look in your local newspaper for foreclosures. they are hitting the market pretty steadily these days. go to a few auctions to see how it goes down before getting one.

banks aren't the only ones with money. private lenders and mortgage brokers have money to lend at reasonable terms. use your cash for rehab costs (only pay cash for labor costs 'cuz you can buy materials with no intererst/no payments until after you sell)

hit me up on PM...

 

[Lick]

lots of variables-where you are buying, what you intend to buy (single or multi property), do you intend to hold or flip 2nd home right away?

whatever you do, your profit margin is actually set when you buy, not when you sell. be sure to buy investment properties as low as possible.

best way to buy low is to look at distressed properties (worst house on a nice street that you can buy really cheap, clean up a little bit and resell to another investor for a quick profit. or if you're in it for the BIG deal fix it up nice to appeal to someone who will buy and live in it. (that's how I do it)

a nice property with an owner in a financial bind and is highly motivated to sell is another way to buy low (lower than through a realtor or broker). or look in your local newspaper for foreclosures. they are hitting the market pretty steadily these days. go to a few auctions to see how it goes down before getting one.

banks aren't the only ones with money. private lenders and mortgage brokers have money to lend at reasonable terms. use your cash for rehab costs (only pay cash for labor costs 'cuz you can buy materials with no intererst/no payments until after you sell)

hit me up on PM...

This brother covered it very well... "LICK"

 

[deputy dawg]

thanks "L"

I'm new at this but I've been studying "systems" (R.E. systems by Al Lowry/Russ Whitney/Wright Thurston/Raymond Aaron/Carlton Sheets & asset protection by Lee Phillips) between demo & rebuild work. I'm almost at the point where working on 'em myself ain't fun no more, and I'm willing to pay someone else to demo & fix while I go hunt down the next deal.

Until then, hand me that sledge hammer...

 

[Real1]

Buy your next property as Owner Occupied. Only put down 3% or 0%.

 

[Lick]

Buy your next property as Owner Occupied. Only put down 3% or 0%.

I want to make sure I understand you... Are you saying tell the lender that you will occupy the property to in it with a low down? Well, if you are going to occupy the property why not do it with the first time buyer program? One can use that program as long as you have not bough any property in two years. Something to think about. "LICK"

 

[deputy dawg]

If you're buying as an investor you're best way is to set up your LLC before buying in order to have all tax & liability issues working in your favor from the start.

 

[d_the_inc]

much love to the fam for all of the feedback...there's certainly enough to digest....thanks again

 

[Lick]

If you're buying as an investor you're best way is to set up your LLC before buying in order to have all tax & liability issues working in your favor from the start.

This brother is making a very good point! You can do with an “C” Corp. an LLC is by far better for Real Estate investors. The brother is on point! “LICK”