Looking for the best financing for my first rental property.

[Joseph Fenner]

I'm looking to invest in my first long-term rental property using the BRRRR method but I am trying to find the best financing options for me. I was originally looking at conventional loans from banks but after researching it will be slow and they don't like investing in rental properties because of the risk and it does a hard credit inquiry every time which will effect my eligibility.

I was looking at hard money loans because they are faster to obtain but they are for short-term rentals and I need something for long-term rentals. Any suggestions?

My goal is I want to buy 200 properties in 5 years(separate business plan) and build even bigger after until I have the biggest real estate empire. I need to become a millionaire in my 20s it’s a requirement and I need to buy my first rental property at age 20 which I just turned 20 so I have less than 1 year to acquire my first property, it’s a non negotiable. I want to get to a point where I am buying properties every day across the world. 

But my first goal is to buy my first duplex and rent it out this year it cannot be later, like I mentioned it's a requirement for me. I will be traveling across the US to a better housing market, I have access to the MLS for every state which is cheaper than hiring a realtor and will make my journey better and faster.

Also I have no income I live on disability and invest that into stocks, I worked a few months in IT and saved everything and quit so I could buy time. My credit score is 765 and I have the best credit history never missing a payment which will help me and my investments.

Where can I find an investor to give me $50,000 to show the lender I have income and a down payment? Also for travel expenses.

What are the best financing options for my situation?

Thank you,

[Michael Dumler]

@Joseph Fenner, so many people forget that the first step of implementing the BRRRR strategy is acquiring the property all CASH. Your best bet is to explore hard money products upon the initial acquisition or work with a private lender and refinance via DSCR or commercial loan. To be blunt, none of this will be easy. For option one, you must understand how short-term debt works. I can't tell you how many stories I've heard of individuals getting crushed by HMLs because they didn't know what they were doing. Option two will be even more challenging since you don't have a valid track record. Therefore, it won't be easy to pitch deals to private investors regardless of how lucrative the deal may seem.

If you are serious about this endeavor, you must become a pro in deal analysis and underwriting. Practice analyzing deals daily while simultaneously building your network of buyers/partners. 

You're young, so I recommend slowing down before you acquire much debt. You still have time; this isn't a get-rich-quick business. 

Good luck!