How'd You Finance Your First Deal

[N/A N/A]

I see a lot of questions about financing and starting out and thought this would be a good discussion to start.

Like the subject says, how did you finance you first deal?

[N/A N/A]

Here is how I bought 30 homes last year. I took out a 15k equity line on my primary residence. I purchased 3 homes on a land contract (5k down on each). The seller paid all closing costs. I then did cash out refinance on all three properties. Made about 60k, and still cash flowed on the homes about 300.00 per. I bought a bank owned home for $35,000.00 did 15k in rehab work, and refinced it at 80% LTV. It appraised at 81,000.00 dollars. I rolled this same money over 30 times, produced a monthly net cash flow of 11,900.00 dollars, and paid off my equity line.

When I work with new investors, and they do not have a primary residence, I find an investor willing to sell one or more properties on a land contract. If the investor has good credit, MBNA and some simular banks will give unsecured lines of credit up to 50 or 80 thousand.

The trick is to find homes with enough equity to not only get your initial investment back, but to make 5 to 10 grand extra on each deal, and working with a mortgage person that specializes in investment property financing.

AJ Watson
[email protected]