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Updated almost 5 years ago,
How Do I Make This Financing Work?
Hi BP! I'm a new investor who has read all the books about creative RE financing but doesn't actually know how to put them in practice. I just just tied up my funds (and my DTI ratio) in a separate opportunity, and found out today that my bid won an auction that I'd previously been outbid on. I want to find a way to move forward with this second opportunity as well, but I don't know how.
It's a 3br/1ba SFR in Lakewood, OH (the best part of the Cleveland area), and my bid was for $110k. ARV appears to be around $180-220k, and I'll know more after inspection, but I'm guess it'll take at least $30k of rehab work. I'm single, and it looks like I've used up most of my leverage on my personal home and investment #1. How do people get investment #2 if they can't get more financing? I've already posted over in the marketplace ads to see if anyone would be willing to partner with me, but I would really love any general advice from over here, if you've got it. Not even for this immediate opportunity, but just in general -- how will I ever be able to finance more properties if my DTI ratio is too high?
Thanks in advance!