Best creative financing methods for first deal?

[Robert Malcolm]

Hello,

Like many others I am searching for my first investment property (SFR or 2-10 units). I don't have much in the way of equity but continue to save to buy my first property, I have great credit and a DSCR lender who is willing to lend to me, but I am missing the equity for the deals. How have you seen others (or yourself) go about making their first acquisition with little to no equity? I am aware of seller financing and am working on that, but I was curious to know if anyone has taken a different creative route that I am not thinking of. I understand there is no magic bullet and am not seeking one, just curious. Thanks!

[Account Closed]

Quote from @Robert Malcolm:

Hello,

Like many others I am searching for my first investment property (SFR or 2-10 units). I don't have much in the way of equity but continue to save to buy my first property, I have great credit and a DSCR lender who is willing to lend to me, but I am missing the equity for the deals. How have you seen others (or yourself) go about making their first acquisition with little to no equity? I am aware of seller financing and am working on that, but I was curious to know if anyone has taken a different creative route that I am not thinking of. I understand there is no magic bullet and am not seeking one, just curious. Thanks!

We always teach Lease Options first because they are the easiest and safest. Locating, marketing and negotiating the deal, understanding the underwriting, using escrow and title, and all of the basics are used so that it prepares for the more complicated techniques. It's like learning to ride a bike, first you introduce the basics, learn how the breaks work, learn to steer, and how to peddle. You don't start your learning at the top of a hill headed into a busy intersection. You start in a playground.

[Michael Carbonare]

@Robert Malcolm  I agree with the previous post about lease options being a smart approach for a new investor.  Done correctly, you can work deals with neither risk nor upfront cash.  30 years ago lease option assignments was my start in this business and I still utilize this strategy today.  Also, there are a variety of strategies under the lease option umbrella, and this diversity gives you a greater chance of providing the seller with what they need to do the deal.

[Ellis San Jose]

Living & investing in Southern California forced me to learn creative strategies in both marketing & acquisition to competitive. I only buy off-market now.

Here are just a few: properties with title issues, court settlement claims, master leasing, lien & mortgage acquisition, seller carry back, options as well as traditional buy & holds, flips.

[Mohammed Rahman]

Have you considered partnering or Joint Venturing (JV) on deals with others? In this case if you're the one with the lack of capital, you could be the one putting in the work to source and structure the deals.