Financing new rental property

[Connor McColl]

Hi everyone,

I am looking to start a real estate co and have some questions! If you could help me out that would mean a lot.

How many properties do you manage?

As a business do you value property appreciation or monthly rent intake more?

When you acquired your first few properties, how did you finance them?

What issues/difficulties did you run into when trying to finance your properties?

How do you finance your new acquisitions/projects now?

Thanks so much

[Michael B.]

Hi everyone,

I am looking to start a real estate co and have some questions! If you could help me out that would mean a lot.

How many properties do you manage?

• I don't self manage. Always have a professional property management company manage your assets.

As a business do you value property appreciation or monthly rent intake more?

• Starting out, cash flow. Only cash flow will help you feed your family. It's pretty hard to tap into appreciation if you are in a financial hardship. Banks won't refinance if you just lost your job and only have one rental property that doesn't even cash flow.

When you acquired your first few properties, how did you finance them?

• I paid cash and refinanced out using conventional financing products. However, looking back I would have been able to grow quicker if I would have used my cash for down payments with regular financing buying turnkey properties.

What issues/difficulties did you run into when trying to finance your properties?

• The seasoning period held me up when it came to refinancing my assets. As I said in my last comment, I would have been able to grow quicker if I would have used my money for down payments on turnkey properties.