The First Step is Killing Me

[Anthony DiBenedetto]

Hey all - my name is Anthony DiBenedetto, and I wanted to introduce myself to everyone and also ask for any advice from those who were at one point in time in the very spot I am now.

I live in the New Orleans area, and I am a completely new “investor.” I have 0 direct RE experience, although I was an underwriter at a large commercial bank with a few RE-focused clients. My goal (as of now) is to start small and scale up over time to mid-size multi-family and apartments, ideally targeting value-add properties.

My issue is, of course, starting. I have 0 direct experience, 0 RE-specific connections, and minimal deployable capital. With that, I have a wife and 2 kids, so house hacking isn't an option, nor is moving, so FHA & VA is out. I'm left with the 20% down or creative solutions options for financing.

If anyone was at this point in the beginning of their journey and found their way out of the quicksand, I’d love to hear how.

Thanks all for reading. I’m very glad to be a part of this platform and am hoping to connect/meet some of you within the NOLA area.

Anthony

[Ben Scott]

Congrats on starting the journey. With eviction moratoriums and COVID, I imagine there are tired landlords in your market. If you can identify any that own a property free and clear, you could negotiate an 'owner finance' deal. You create a note and mortgage with the owner. Then restrictions are much less than with a bank. Acceptable down payments are 5-10%. Interest rate one above prime. Most tired landlords just want the cash flow, that check coming in every month.  If you take on owning and managing the property, you can pay off your debt with minimal cash down and no ding on your credit. I'd start with your personal network and identify any in your sphere of influence that fit that criteria.