@Craig Perry Welcome to BP!! You are correct, this place is awesome :) Here is my current list of inexpensive ways into RE. NACA seems to have a presence here on BP now. 0% Down: NACA (https://www.naca.com)VA Loan (http://benefits.va.gov/HOMELOANS/index.asp)Rural Development Loans (Renovations MAY be included)(http://www.rurdev.usda.gov/HSF-About_Guaranteed_Loans.html) 3.5% DownFHA (http://portal.hud.gov/hudportal/HUD/topics/buying_a_home) 3.5% AND RenovationsFHA 203k loan (http://portal.hud.gov/hudportal/HUD/program_offices/housing/sfh/203k) 5% Down - (currently not funding new purchases)Homepath Owner Occupied (http://www.homepath.com) Not as cheap, but come with renovation options attached to the loan:15% DownHomepath Investment (SFH only) 25% DownHomepath, and pretty much any bank, Investment (2-4 Unit Buildings) Auxiliary: http://203kcontractors.com/You can have 2 VA loans at a time according to another BP member

There's some new money hitting the streets for long term stuff, that doesnt look at DTI. I've got one with Lending Home and one with Lima One. They are slightly different and serve different areas. Rates are 5-8%, not DTI requirements and such. Light doc, but 620-630 min credit score, and a few other things. There are prepays on these loans. I've never done one, they are very new- like this month, but they're interesting for sure. Probably going to do one myself for a rehab I converted to a rental. I'm guessing if those two came out with similar stuff at the same time others will too, most of those guys drink from the same well on where they're funding comes from.

@Craig Perry Good, try not to make those mistakes again, just make new mistakes quicker! and don't ever think you've made them all because the Universe will laugh at you and send more! Churn = how often are you turning over that car inventory of $30k Gotta look at some OHs today and we'll catch up later!

@Craig PerryI guess if you were successful, then made mistakes and know what they were, you just don't make those mistakes again? With $30k in Inventory, what's you churn?

@Craig Perry Welcome. You remind me of my fellow Investors/Landlords in our Massachusetts and New Hampshire REIAs. They'll come to me for a Loan, saying they made $200k last year.... When I ask for the first page of their 1040 I see a bottom line of $25k which severely limits any Conventional financing. SO I ask about it and they say they write everything off so they don't pay taxes. OK then you don't get a low rate Conventional Loan (and you risk an Audit;-(

Craig, welcome to Bigger Pockets! It sounds like you've experienced the dilemma a lot of us do - that what you do to pay less in taxes (reduce income, accelerate/increase expenses) ends up hurting you when it comes time to apply for a loan. The good news is that if you own your own business and know you want to start usingou bank loans, you can start making yourself look better by increasing your salary, etc. Once you feel more comfortable with RE investing you also definitely might benefit from looking into a Solo 401(k) - but I almost hesitate to mention it because at this point it could just complicate your life and distract you from learning more about RE. So I'd say definitely keep it in mind for a year or two down the road. You said you wanted to get creative, so you can also look into private or hard money financing options which will look a lot more to the property than your personal income situation. The down sides to those options are that usually the rates will be much higher than banks (2 or 3 times higher) and you'll have to put more money down. Either way, congratulations on not having any credit issues and almost no debt! That will definitely help you out.

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Updated over 9 years ago on 05/30/2015. Most recent reply

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Craig PerryPoster

North Scituate, RI

Starting Out

Any ideas??

Craig PerryPoster

North Scituate, RI

Posted May 17, 2015 07:02

Hi everyone. I'd like to start by saying that this forum is amazing and inspirational! I am from Rhode Island and looking to start out investing in real estate all over again. I say "all over again", because I started young (at 19) buying rental properties but like most young kids I made many mistakes and sold the properties. I have always had a passion for real estate investing and now I'd like to dive back in. I am looking for some help or advice with a few specific things, and this is probably the best place on the planet to ask, so here goes... I am looking to acquire rental units, but I have some road blocks that I'm having trouble navigating around. I am self employed (I own a small used car dealership) and have all of my money tied up in my inventory on the lot ( about 30k) and I also own about 11 acres of land that is in the process of DEM approval to build. Aside from that I have no other real assets. I don't pull much of a pay check from the lot which I now regret and have since changed therefore I do not show hardly any income. The plus is that I do not have any credit issues and almost no debt. I'm looking to get creative.. Any ideas guys???

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