Owner Financing for a Newbie?

[Claudia Spice]

Hello! I am very new to real estate in the sense that I don’t own any yet. I have been wholesaling for a while now and came across a deal that I’m feeling like I don’t want to miss. 

The owner has two town houses he’s looking to sell and will do so under a land contract. Each one is 130k, rents for $1200 each side, wants 6% interest and 7-8k down on each. 

My dilemma is that I’ve been wanting to own property forever but now that I have a chance to, I’m nervous! When you bought your first properties with creative financing, did you have the capital to pay the owner if a tenant fails to pay? My worry is that because these are my first properties, I’m still growing and don’t have tons of capital to back me up. 

However I don’t want this opportunity to go away because I was nervous. The town homes are in more decent areas of my city (Milwaukee) and get better quality long lasting tenants. 

Do investors always have the funds to pay the rent themselves on all their properties?