OfflineHi I’m relatively new to real estate investing, made a few deals years ago when the market was booming but then chickened out after that. Which I guess was for the best because I sold before the big down slide.
I’m having a heck of a time trying to get a mtg on a condo. There are dozens of condo's in my area that are KILLER deals and great opportunities for cash flow. I want to buy 1, fix it up and rent it out then rinse and repeat. I have excellent credit and a great income at my job of 9+ years… but very little cash in hand (going through a divorce). The banks wont touch anything without 25% down and furthermore these condo’s are <60k and that’s to low for them. Am I going crazy or is this just nuts? I can easily own 2-3 of these and make the monthlies with my salary let alone if I had renters in them. Can anyone suggest me alternate methods of getting funding for this kind of investment?
Thank you for your time.
Are they foreclosures? If so, the bank holding the property may be more apt to deal with you.
Try lining up a mortgage through a broker as opposed to the banks directly. They can shop for you.
25% down with good credit, income and job history sounds like you are working with the wrong people.
If all else fails you can try family or friends to partner with you on the down payments.
As always, just make sure you get a great deal on the property - not just a good deal. We have ritzy condos around here that were going for nearly 400k during the boom going for $110k now. You would think they would be steals until you factor the HOA is $500/mo. Make sure you factor in the HOA, because sometimes they deal breakers on condos.
Most of them are bank owned, great idea. Thanks i'll give it a try.
I sent my information to the broker on this site, just waiting for a call back. Hopefully they can assist as well.
Also great advice on the property... I have to keep in mind to submit offers instead of accepting the listed price because it looks already to cheap, doesnt hurt to try for more
Still working on making/finding my first deal and getting my feet wet, its a bit scary.
Thanks again for your input.
Great news! I went to my first REI club meeting in Clearwater last night. It was nice meeting some other investors and they were very helpful. I spoke to a few people and got some cards and exchanged info. It's a little far for me to go, and I am trying to find one a little closer, but I felt like it is necessary to take action and move forward. I am just about 2/3 of the way through BARM and hope to finish it this weekend.
I plan to read through PFRERN next week, taking my time to get the most out of it and work on the activities, and start setting up my team.
If anyone can walk me through understanding the cycles of the market, it would be greatly appreciated. I feel like it is right there and with a little prodding it will make more sense to me.
Manuel