Financing a first property for STR

[Account Closed]

I'm looking to purchase my very first property as an investor. I'm super interested in buying a house that is move-in-ready, so I can begin furnishing it and get it right up on Airbnb for listing. 

I have: 

-About $12k reserves

- A few $K available on credit cards

- Almost 700 personal cred score credit. Although, not sure if it matters or not for this

What I don't have:

- Enough biz credit built up to borrow large amounts of money (although...getting there!)

- Definitely don't have enough pull to get a large loan with my personal credit! 

Obviously, I'm looking into hard or private money. 

But is that the right path? Considering my points above, what should I do? I have read every book and article on creative financing and what I gather from it all is....networking. 

Well, dangit. Living in a pandemic makes that pretty hard when all meetings are online! (Anyone that says networking works seamlessly over a Zoom call...must know something I don't!)

Zoom - networking. It's a different beast. So mark that off the list. 

I'm well prepared with my new business. I feel I have all of my ducks in a row, in every aspect.. Do you think I should just reach out to some lenders and see if they'll lend to this newbie at a higher LTV? Because I don't have enough for the remaining LTV.. To be completely honest this funding part...kinda has me up at night. How can I make this happen? Is it possible to happen?

(Might want to mention I live in Southern Cal... Where I plan to begin.)

Kindly appreciate your thoughts and time to read this. Thanks!

[Willie James]

Hey Chrissy. For a DSCR loan, expect to have 30% between down payment and reserves as a brand new investor. I've not seen any that will do less than that. Not from Socal but 12k doesn't sound like enough for out there.

If you're niche is STRs perhaps consider the arbitrage model. Not sure how much you are willing to hustle, but managing the unit for a cut of profits might be attractive to the right rental owner. Wouldn't have to bother with furnishing either in the right situation.

With regard to buying a property, partnering with someone with money is the way to go. If you find a good deal, networking, regardless of medium becomes much easier. 

You are on the right track thinking about business credit. Do you already have business cards? 

Do you already own your primary residence? If so, have you considered house hacking?