A point in the right direction (financing)

[John Draper]

Can anyone give some advice to a beginner on financing?..... I just purchased my first home last year and I've been intrigued with the idea of investing. I would like to plan and prepare for the purchase of a second home which I will hold and rent. Does anyone have any suggestions on creative financing or general information on getting approved for a second mortgage?

(how soon can you buy a second property???)

[Jeremy Hunter]

Hey there John!

There several options that you can find here on BP for creative financing for buy and hold. For example Owner Financing, which is a great way to acquire a second property. The thing you want to be aware of is how the deal is structured with the owner, because they may want you to pay up after a certain amount of time and if your not ready bad things happen.

Another way is using your IRA or Self Directed IRA. That is money that would just go back into your IRA and build that back up again on its own.

I am working on using a Personal Line of Credit to build up to be able to use as a down payment on a deal that I am looking to pick up here on BP.  Done responsibly this would work for you as well. 

Look up house hacking tricks here on BP and learn how more about mortgages. 

Also network with property managers in your area because they will have leads and suggestions on rent and properties that you could possibly acquire.

These are just some of the tips I have taken to heart myself. Let me know what your thoughts are.