How did you get your first financing?

[Henry D West]

So I am wanting to get started in real estate investing in Columbia SC, I am coming across loads of deals which interest me but I never want to commit because I am worried that I won't be able to finance them. 

I have good credit (730) but only about 10-15% down so I am looking for alternative financing but I have no idea where to start. Has anyone gone through a similar situation and if so how did you solve it? 

Would love to hear any advice on the topic!

[Account Closed]

Originally posted by @Henry D West:

@Account Closed what is Subject To? Thanks for the input 

Hi Henry, pleased to meet you. Subject To is actually what I do. I buy properties by "taking over" the mortgage & the payment of the mortgage and then I control the property. Ownership transfers to me. I always have $50,000 or less into the property. I give the seller their equity and they move out. Oftentimes I have under $25,000 into the property.

Then I sell the property to Tenant Buyers who give me $25,000 plus or minus down. So, essentially I have zero into the property at that point. I collect a payment from the Tenant Buyer "up front" as a down payment, usually within a month from when I've bought the property. Then, their monthly payment to me covers my payment on the mortgage and usually I get $500 to $700 per month *more* than the payment I am making.

I make my payments on the underlying note and keep the spread (the $500 to $700). I am happy for the contract to run for as long as the Tenant Buyer wants before they refinance out. The longer it runs, the more I make. So, typically on a $200,000 property, I spend about $25,000 to control it, I get $25,000 back out immediately from the Tenant Buyer, I have a spread of $6,000 to $8,400 for each year, so a note that pays off in one year totals $31,000 plus or minus and a ten year total is $109,000 plus or minus. I don't know how to calculate CoC or ROI on this, but I love the numbers. Regards