Funding For First Real Estate Deal

[Stephen Tawiah]

Hi. My name is Stephen, and I'm going into my 1st real estate deal. It's a townhouse in Ohio, and as per the estimated financials, I could be looking at $400 per month in cashflow.

Problem is... I have absolutely no funds myself. I'm trying to get a mortgage, but it's entirely possible that the mortgage might not cover 100% of the price of the house. Even if it does, there's closing costs to consider.

As I said, I have no cash myself, so I'm asking how I can deal with generating cash for closing costs (and a down payment) if it comes to it.

The house costs $139000. As per chatGPT, closing costs in Ohio are usually 2% - 5% of the price, so maximum: $6950.

I'm open to working with lenders of any kind to make this happen.

[Chris Seveney]

Quote from @Stephen Tawiah:

Hi. My name is Stephen, and I'm going into my 1st real estate deal. It's a townhouse in Ohio, and as per the estimated financials, I could be looking at $400 per month in cashflow.

Problem is... I have absolutely no funds myself. I'm trying to get a mortgage, but it's entirely possible that the mortgage might not cover 100% of the price of the house. Even if it does, there's closing costs to consider.

As I said, I have no cash myself, so I'm asking how I can deal with generating cash for closing costs (and a down payment) if it comes to it.

The house costs $139000. As per chatGPT, closing costs in Ohio are usually 2% - 5% of the price, so maximum: $6950.

I'm open to working with lenders of any kind to make this happen.

Hate to be the bearer of bad news but no lender will touch this as an investment. you will need to come up with 25% down plus closing costs.  Maybe seller financing.

But let me ask this question, what happens if in the third month the furnace goes and needs $2000 worth of repairs? How would you pay for that? I strongly recommend against people buying real estate with zero money. This is not personal, but if a person cannot save money now real estate is the worst investment to get into as it is one of the most cost intensive businesses to be in.