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Updated over 9 years ago on . Most recent reply

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18
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Javier Acosta
  • Real Estate Investor
  • El Paso, TX
0
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18
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How to get Financing if I dont qualify for a Conventional Loan?

Javier Acosta
  • Real Estate Investor
  • El Paso, TX
Posted

I am a 22 yr old new to the Real Estate Investing world,and I have been having a really hard time finding a way to find financing for rental property.

I have an ok credit, but my current job is commision and banks require minimum 2 years at the same position to consider my salary, they only take my base(1200/mo).

I have the capital to do a 20-30% for a 100k-130k property. 

I dont want to wait 1 more year untill I have the 2year period at my job....

What is an alternative to finding financing in my situation? Any suggestion is appreciated!

Thanks in advance!

Most Popular Reply

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1,254
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425
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Steven J.
  • Urbana, IL
425
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1,254
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Steven J.
  • Urbana, IL
Replied

@Javier Acosta You're welcome. As for partners on a buy and hold its depends on your agreement that you have and who does what. Personally, I think I'd be more comfortable with buy and hold rather than flip partners. My ideal situation is where my partner(or seller providing seller financing) brings the money to the table, I manage and pass along part of the profit. They get no say in how things are managed, they simply sit back and collect their monthly income. With flipping I'm afraid they would try to voice their concerns and take over the project more than I would like. For some reason, practical or not, I imagine they want to be more involved because of a different mind set. Flippers, and lenders to those flippers, want their cash fast and a lot of it where as long term lenders would rather see steady monthly income. Maybe its because I'm a long term hold mentality.

Seller financing can be all over the place. In my market you can do private lending for around 6-8% over 5-15 years either interest only or P&I. It really depends on the saviness of the person, your pitch and how much they trust you, and what their goals are with receiving money back. 

A portfolio loan, correct me if I'm wrong, is for multiple properties wrapped together in one loan. For example, you have 6 SFHs and want to refi to pull some money out. You can put them all under the same loan, a portfolio loan, and get the benefits of that type of loan. I'm not super familiar with what common terms are on those but there is some perk. Biggest catch is once homes are in a portfolio loan you can't sell one of the six without some big headaches along the way. 

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