How do i raise capitol ?

Question

So I really don’t know any way I can raise the money I need to put a down payment done on a multi family property. Any tips?

Shelon Hutchinson · Answer

@Jeremy Torres-Jimenez

I aspire to add value to all my posts on bigger pockets and other social media platforms. I would really like to answer your question Jeremy. But what I want to know first is, what have you done so far?￼

“Nothing” is the wrong answer.

And then my next question would be what do you believe are some of the actions that you need to take?

Additionally, what resources have you used in an attempt to educate yourself on your responsibility to investors whenever you take their money?￼

Seth Hochberg · Answer

@Jeremy Torres-Jimenez

Welcome to the BiggerPockets community. If your plan is to buy a 4-plex and house hack, and you're barrier is gaining funds, I assume you're looking into an FHA loan. You would only need to cough up 3.5% down payment, if it's owner-occupied. I'd also recommend reading Brandon Turner's book: "The Book on No Money Down Real Estate Investing."

Also, I would not be investing in the stock market. The stock market is where you put your money if you don't need it in the next five years (3 years minimum). If you need the money in 6 months, you're just timing the market and a big drop might derail your whole plan (think value of your stocks go down 30%). We've been on an incredible Bull run since 2011, minus the drop that happened earlier this year - I wouldn't assume that's the direction we're heading in the future.

Jeremy Torres-Jimenez · Answer

@Joe S.

Yes joe that is true. I want my first property to be a 4plex. I plan on house hacking that property living there and renting out the other units to the military personal in my area. I have done a lot of research on buying and renting out multi family homes. I understand that actually doing is a whole different animals and I’m not afraid of messing it all up. I just know nothing of raising capital minus a loan or turning my employee earned income into investment income in the market which I currently do. The problem I have is it’s too slow of a process. My end goal is to get to the multi family home and although I see the amazing power of the market I want hard assets to be my investment.

Joe S. · Answer

So you are saying that you have never bought a single-family house? If you have never bought any real estate why are you wanting to jump to multifamily? I know there are people out there that say you can skip single-family and jump right into multi family, but for most people it doesn’t work that way. Now if you’re talking multifamily in the sense of a 2 to 4 units then that’s a whole different story than what I’m referring to. Technically that’s multifamily, however it’s still probably small enough that you could do it without having a ton of prior experience.

Seth Hochberg · Answer

Oh! VA loans are 0% down, right? That's definitely the way to go. As long as you have some money in reserves, and the numbers make sense, you should be golden. Just keep educating yourself along the way. Good luck!

Jeremy Torres-Jimenez · Answer

@Seth Hochberg

Also, I’m going to use my VA Loan. But I didn’t know that about the FHA. Thank you for that.

Jeremy Torres-Jimenez · Answer

@Seth Hochberg

Hey,

Thank you for the advice. I really appreciate it and I will read that book. I’m going to purchase now.

Jeremy Torres-Jimenez · Answer

@Shelon Hutchinson

So far, I’ve taught myself about investing in the stock market and I have a modest portfolio still but I’m up 19% and it’s a good start and I see my money grow daily but I know that people have ways of Raising Capital much faster. I’ve also read on Waze on how to use real estate to build more capital,Such as refinancing. I just am not sure on any other ways other than the stock market to help myself raise capital. I also have never taken money from an investor, I’m not sure exactly how that would fit into this unless you were talking about me bringing a business deal to investors.

How do i raise capitol ?

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