Questions in regards to financing

[Alexis Nieves]

Hello, 

My name is Alex and I'm new to the real estate game. I am learning as I go and researching a lot. This is my situation. I Inherited a large lump sum of money, My plan is to purchase Rental property's out of state, Generally I was looking to put down 20-30% down on each house. Currently I am residing in California, a little bit north of LA. Now I am a veteran and This property would be for me to live in until I graduate school and I'll turn it into a rental property afterwards. Ever since I got out of the military ( OCT 2018) I haven't worked due to me receiving the GIBILL, it doesn't count as income but I managed with what I got. I wouldn't qualify for a VA LOAN, due to me being unemployed. The real question is, does anyone know who or where I can go that would be willing to finance the rest of the property. I've heard of a mortgage broker that would require me to put down 35% of the house ($105,000) ( 300,000) asking price of the house. Is there any where else I can look for a smaller down payment .

Thank you for your time and responses

[Dylan Vargas]

@Alexis Nieves Welcome! So you are moving out of California and going to buy a house and finish school? If so you can look at private money lenders or hard money lenders as you have the down payment . You will pay higher interest for the loan but it will get you into a house. Another option would be to hold tight for a year, get a job so you can qualify for a VA Loan. It may only take a year of employment to get a loan but I am not sure. Another point, once you are out of California there are many more "Owner Finance, Owner Carry and Land Contract type transactions available. In this case you would not need a bank. I personally would caution you to spend anything with the exception of for your own shelter. Make sure real estate is what you want to do and make sure you are in the right area. You will need a bank roll and some massive tenant screening plus being able to recognize a good rental home. I would slow your roll, get shelter for yourself and then study the local market for a year. This will be invaluable. You only get lump sums like this probably once in a lifetime. Make sense? Good luck and keep us posted.