Financing question

[Joseph Tarallo]

Hello investors hopefully someone can help me with this.  My question is when it comes to getting financed for a second property. If I have one property and it's producing a positive cash flow after mortgage and expenses etc how do I get financing for another one.  Say I have the cash to put 20% down on a second property.  Will the first property show as debt and hurt me from getting a second mortgage ?  I want to know how investors are able to buy multiple properties.  I have the down payments but confused how you will get multiple loans and leverage to buy with bank finances 

[Alberto De jesus]

Investors buy multiple houses by building systems. 

One person systems might be to get hard money loans to buy, fix up houses, refinance and then rent. Another persons strategy might be to use the FHA to buy multifamilies and repeat every year. Another might just pool money from other investors to complete commercial purchases.

Ultimately success in investing is repeating the same strategy or strategies over.

If it's cash flowing, you might actually have that income count towards your buying power for qualifying for loans. 

A lot of starting investors don't own their house free and clear. The main exceptions would be people that inherited or bought the houses extremely cheap.

There are a lot of ways you can acquire that next property. 

A few are:

1. Conventional loans

2. FHA loans

3. Seller Finance

4. Use Home equity loan

5. Commercial loans

I suggest reading the book called "The Book on Investing In Real Estate with No (and Low) Money Down". It's really good and opens up alot of options you may not have thought.