Tips on Financing Needed

[Melissa Gittens]

I recently purchased my first 2 family investment property with an FHA 203K loan and wanted some advice on what the next steps should be. I am already looking for my next deal and am trying to figure out ways to finance it. What are some of the ways that you financed your second or third deal? What are some creative ways that you have financed your latest deals?

[Account Closed]

If you intend to keep the property - always arrange for seller financing - even if they say NO - put it in your contract offer - you never know - 

• Offer more - but negotiate a "principal" mortgage - that is without interest - agree to pay X$ per month until paid off. Paying principal only payments reduces you balance very quickly -
• If you are going to flip - same as above - but offer seller financing (that is subject to your owner financed arrangement) but with an interest - therefor you will be receive interest on money you owe that you are not paying interest on - this is a good thing.
• If you need conventional financing - contact the CEO or president of the bank - ask about their products - ask if they can refer you to someone in the bank to talk to. Now you are coming in not as a stranger - but refereed by Mr. Big.
• Flipping - control the property subject to assignment - have a public auction - if you are in for $100,000 and get $125,000 at auction - you walk with $25,000 (this is part of the Control and Roll System)  it works.
• Ask the seller what kind of a car he wants - go buy the care (they are easy to finance) offer the car for the property or offer the car for the downpayment with seller financing.
• Ask the seller to rent the property to you while fix it up - sell it - give seller part of the profit plus an agreed base price.

Good luck - Charles