100% financing? Term lengths?

Question

I'm looking to buy and hold rental properties.

Definitely new, any veterans out there want to answer questions?

Hard money?

Can you get 100% financing anymore?

Can you get 30 year loans?

Rodney Buchanan

Neil Aggarwal · Answer

100% financing is a myth perpetuated by people that sell seminars.

Eddie Reid · Answer

hello rodney,ed reid here,there is 100% financing available for fix and flips ,the money is expensive,14.99 and 4 pts ,its only for 6 mo,here is a creative way you can accomplish your objective as it pertains to buy and hold,you could intially acguire properties using the hard money ,you would have to make sure that  your  rents are high enough to pay,you could then refinance the properties,i have lenders in my portfolio that has a 3 month seasoning requirement ,they wil lend you 70 to 75% of the appraised value,if you were able to buy properties and rehab them in such a way that your loan to value is 60%,you would be able to pull money out on the refinance,the rates are between5 and 7%,you may want to read my post financing your way to wealth ,the post will give you a case study of this technigue in action

Adam Stanton · Answer

@Rodney Buchanan the simple answer is yes, there is 100% financing out there.  BUT, it takes time to get to that level if you don't have rich parents or a trust fund to dip in to.  Most of the guys I know who are using little to none of their own money have at least a ten year track record of solid performance.  These guys can typically email or text their private money providers with the deal and the money is quickly sent.  I agree with @JerryPadilla and others that mention multi families with an FHA.  That's an easy route to get in the game.  I take the crawl, walk run approach.  I purchased my first property with an FHA, lived in it and fixed at the same time.  Took the profit and used it to buy a few rentals.  Now I'm looking to raise private money with some colleagues.  You'll find some who disagree with this.  They would argue that jumping right in to creative financing is the way to go.  That's fine if you're savvy enough to understand how all that works.  I definitely wouldn't turn away a creative deal but they are harder to find than most admit.  Starting with the simple approach using bank financing and a small downpayment is a worthwhile learning experience.  Don't be pressured to try and get all creative if you're new to this. It's not worth the risk.

Best of luck

Brian Gibbons · Answer

I coach creative financing where a motivated seller of a pretty house will consider terms instead of cash.

This includes wraps, sub2, master leases, jv agreements with sellers, lease options, and more.

It is all about the negotiation.

See

http://www.biggerpockets.com/blogs/3/blog_posts/30...

Paul Klanecky · Answer

I did had a chance to purchase a Casino with 100% financing. The mortgage payments now longer made this deal a good one. It stinks because I negotiated the owner to cover the Closing Costs.

The company is located in Canada. The last time I checked about a year ago, they only lend to Canadian residents.

http://www.themortgagestoreonline.com

Jerry Padilla · Answer

@Rodney Buchanan   The best route to go would probably be @Nathan Richmond route with an FHA mortgage. It will give you an option of so many more properties that are out there! You can go the creative financing route that others have suggested but that will really limit your opportunities.

Ben Leybovich · Answer

I'm not sure if you can do it, but I sure can :)

Nathan Richmond · Answer

And yes, you can get 30 year loans with each.

Nathan Richmond · Answer

Getting an owner occupied fha loan is about the best you are going to do.  The fha loan allows you to only have to put 3.5% down. You have to live in the property for a minimum of a year.

If you purchase a SFR, then you can get a 5% conventional loan. This is good because it is my understanding that you don't have MIP with this type of loan.

100% financing? Term lengths?

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