Figuring out financing for our first deal

[Jessica Muto]

Hello,

My husband and I are new to Bigger Pockets and are enjoying all the information, resources, and support it has to offer. We currently live and own a plumbing company in Carlsbad, CA and are eager to start building our little real estate empire. We've begun the process of looking for a market, finding real estate agents, lenders, and property managers to help us. I have to admit I have a little FOMO at the thought of deals I am missing because I don't have our financing all figured out. I know in theory about creative solutions like partners and seller financing and house hacking, BUT putting them into practice in the right order is another story. We're working on conventional financing (20% etc) but that's going to limit us tremendously in the opportunities we can take advantage of. I guess you could say I am looking for logical "next steps" in exploring asking people to invest with us (how to decide terms, etc?) or talking to the right people (brokers, lenders, sellers, etc) about other options. What the best way to say, "Look, I've heard of this creative option on Bigger Pockets, but I have no idea how to do it, so do you want to invest with me?" while still inspiring confidence? :) What are some ways you more experienced people began branching out from the conventional methods?

Thanks for reading this far, and for not laughing too loudly at my questions, and in advance for your tips!

Cheers,

Jessica

[Account Closed]

Originally posted by @Jessica Muto:

Hello,

My husband and I are new to Bigger Pockets and are enjoying all the information, resources, and support it has to offer. We currently live and own a plumbing company in Carlsbad, CA and are eager to start building our little real estate empire. We've begun the process of looking for a market, finding real estate agents, lenders, and property managers to help us. I have to admit I have a little FOMO at the thought of deals I am missing because I don't have our financing all figured out. I know in theory about creative solutions like partners and seller financing and house hacking, BUT putting them into practice in the right order is another story. We're working on conventional financing (20% etc) but that's going to limit us tremendously in the opportunities we can take advantage of. I guess you could say I am looking for logical "next steps" in exploring asking people to invest with us (how to decide terms, etc?) or talking to the right people (brokers, lenders, sellers, etc) about other options. What the best way to say, "Look, I've heard of this creative option on Bigger Pockets, but I have no idea how to do it, so do you want to invest with me?" while still inspiring confidence? :) What are some ways you more experienced people began branching out from the conventional methods?

Thanks for reading this far, and for not laughing too loudly at my questions, and in advance for your tips!

Cheers,

Jessica

Hi Jessica, pleased to meet you.

You and your husband should first take a yellow tablet, and a pen, and your dreams and go to The Pier Grill & Tackle for dinner. While there, watching the sunset over the ocean, brainstorm why you want to do real estate and which of the following below you want to do & where.

Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, Passive, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, "Subject To", apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc. Decide how much money you have access to, & the zip codes, city or state you want to focus on. That will determine the next step. Outline where you want to be in five years. Put it all in writing. Start working your plan. There are plenty of people around to help you each step of the way. Drop me a line if I can help.

Here is how I do what you are wanting to do . . .

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area