Funding for investing in real estate

[Account Closed]

Just curious, where would I be able to find the necessary funds in order to invest in real estate? Is it legitimate to borrow from credit unions and residential funding programs? I'm new to the real estate investor industry and learning to invest in real estate has been interesting to me for some time. Please respond as any input will help. 

[Hattie Dizmond]

@Account Closed 

Welcome. I've got some tips to get you started, but first, let's talk about your question. The easy answer is "yes" those are definitely legitimate sources of funding. However, you're going to have to put down 5% - 30%, depending on the type of mortgage you get (residential or investor/commercial) and whether or not it is insured (FHA, HUD, Fannie/Freddie/VA or conventional). Your best option for your first property is probably to look into a small multi-family (duplex, triplex, quad) and live in one unit. All of those property types qualify as a Single Family for the purpose of financing. Living in one unit means you qualify for an FHA insured, owner/occupant mortgage, which would entitle you to a 3.5% down payment. That's the absolute cheapest way for you to get into your first property. Use the search box in the upper right-hand corner and search for "house hacking". Pay special attention to the Blog posts (BP Blogs in particular) and the Podcasts. Now for the tips...

Here are my Quick Tips (If you're listening to the Podcasts, you'll understand the reference. If not...see Tip #2!!!)

1. Get involved in the forums. Offer what you can and absorb what everyone else offers.

2. Listen to as many Podcasts as you can. I am listening to all of them, some of them more than once. There has not been a single broadcast that has not provided me value or that I felt was a waste of my time. Great content!!

3. Download and read the free How-to-Guides, starting with the Ultimate Beginner's Guide to Real Estate Investing. You could pay thousands of dollars for this information BP offers free. (I almost did!)

4. Set up some keyword alerts. It will keep you engaged in valuable discussions, while you're getting plugged in.

5. Get involved with your local REIA's. Real Estate is, as I'm learning, all about relationships and networking. Make it work for you!

The BP community is awesome, and you've taken a great first step!