Real Estate Rookie

[Uli Reynaga]

Hello,

I became aware of this community approximately a year and a half ago and it has been a great resource! I listen to the podcasts and read the forums on a regular basis. BP helped me find information as I made a big leap and purchased a triplex in Boyle Heights (Los Angeles) a year ago. I also have a vacation home in Big Bear that I purchased before thinking about investing in multifamily units.

I can relate to others, where I immediately started to think about how to obtain a second investment property after buying the first one. However, I have hit a roadblock; properties in LA are expensive and a 25% down payment is no joke. I wanted to leverage the equity of this property in order to help me come up with another down payment. However, the comps in the area will not give me a high enough loan to value in order to secure that.

Needless to say, I do feel stuck and think that perhaps I just need to wait a bit, save more money, and wait for two years for a bank to consider the rents as income. I'm reading about alternative ways to borrow, but I am wary of higher interests/risks. Any thoughts on how to move forward?

Thank you in advance,

Uli

[Stephen Akindona]

When you become in bankable in a traditional financing model, you have to start to think creatively! Seller financing is one route but will often require at least some cash to do the deal, but evertything is negotiable! The private money refi is a strategy that I currently use to accquire all of my properties! It works and if the deal is good enough you can be out of pocket very little. I have done several where I have actually been out of pocket "0". Just figure in the cost of private money on the front end analysis. And make sure you are approved for the refinance before you begin the process. Hope that helps!