How to Finance for First Property Investment

[Eric Jiwanmall]

I reached out to a mortgage company, and spoke with a consultant.

He said my best bet would be to apply for a FHA or 203k. I don't want to take out a FHA or 203k loan.

Also, they want a 15-25% down. If I want to buy a rental property for $50-70k, that’s $12k-$17k.

I don’t have that amount of money.

Any advice on how I can finance my first deal?

Thank you!

-Eric

[Robert LaPrelle]

Well, if the deal is good, then I would look for partners. The down payment on my first several investments came from my father. I repaid his initial investment with interest on a 20 year amortization, and he had a 20% interest in the property. After about 5 years, I started to refinance, getting enough out to pay him back and fund my next deal.

Lots of other options  (hard money lenders, etc) that I won't try to talk about because I've never done them. Anyone else want to weigh in with their story?