Quote from @Tanner McElroy:
Hi all, my business partner and I have recently filed for our LLC to start our real estate investment journey in Ohio. We have been doing our research regarding the in's and outs of the different types of real estate investment. Ultimately our main goal build a portfolio of multiple different types of investment properties, buy and holds, rental properties, and fix/flips; but the wholesaling side of real estate seems like an attractive venture as we are just starting with little capital and it could provide us with a revenue stream to become a cash buyer.
That being said, we are currently exploring financing options for funding our first investment property purchase which have brough up a couple questions we cannot seem to get a straight forward answer on:
1. What is the best financing option for someone just getting in to real estate to purchase their first property and what does that process look like for someone just establishing a business?
2. Are there any true $0 down private money lenders offering pre-approval/financing for properties in the $50-100K range? If not what is a good down payment price/percentage we should be looking for?
3. Will lender still provide financing in situations where you would like to close on property but do not renovate and immediately list it for sale again?
4. Do people leave an assignment clause in their purchase agreement that would still allow them assign the contract to a cash buyer able to close on the property in a shorter time period? What kind of affect if any would this have on any sort of financing that is in the works to purchase the property?
Any information and guidance is greatly appreciated!
1. What is the best financing option for someone just getting in to real estate to purchase their first property and what does that process look like for someone just establishing a business?
Saving your money and networking with private moneylenders is best. It can take a few years to build business credit up to a point where you can make large purchases such a property etc.
2. Are there any true $0 down private money lenders offering pre-approval/financing for properties in the $50-100K range? If not what is a good down payment price/percentage we should be looking for?
Private money should be based off of the relationships you establish, therefore anything is possible. I don't recommend going to a 3rd party company for private money until you have some experience
3. Will lender still provide financing in situations where you would like to close on property but do not renovate and immediately list it for sale again?
If your asking this I wouldnt touch it quite yet. There are some bridge gap lenders but learn about it before attempting to do a double close etc. There are some tax implications etc as well.
4. Do people leave an assignment clause in their purchase agreement that would still allow them assign the contract to a cash buyer able to close on the property in a shorter time period? What kind of affect if any would this have on any sort of financing that is in the works to purchase the property?
I don't understand what your saying but I'll give it a shot. If your wholesaling you should have an assignable contract that you can sell to an end buyer. The closing timeline is the expiration of the contract. The buyer of the contract should be able to close within that timeline. There is no "set" number of days to close unless you put it in the contract. Also, you should only be looking for cash buyers so financing contingencies should not be an issue.
