Need Help with Alternatives to Conventional Financing

[Justin Flowers]

Howdy BP, first time poster. I'm looking for advice on how to acquire buy and hold properties without going through conventional loans, mostly because I just simply don't qualify (poor credit from student loans, no W-2, etc). I just acquired my first property for a fix and flip through a HML here in Texas, and they were great to work with. No credit checks, no income checks, etc, so I was able to get the loan. 12.99%, 4 points, a slew of fees, 6 month loan. However, to acquire a rental property through them, I would have to get the rehab loan, then move it to a long term loan at 6-7% (20-30 years) along with another 6 points up front. On a $150k property, this could cost me $10-15k+ in fees and points out of pocket with no equity in the property. Most HML's that I know of in the area have about the same conditions. What kind of alternative options do I have, or is this about the best it's gonna get right now? I would love to start my rental portfolio, but the costs of these deals doesn't seem very sensible. Any advice would be greatly appreciated!