I see a possible opportunity to make some positive cash flow from purchasing properties in my area and renting them out to tenants. The issue is that I currently do not have any cash on hand to purchase any of the properties, and also currently none of the ones that I am considering purchasing are for sale. They are boarded up and owned by the housing authority or the original owners of the property whom obviously do not currently occupy it. I contacted the city and they gave me a list of things i need to do to acquire any of their properties. On the list the require proof that I have the financing available to purchase any of their properties. It appears that I would need to find an investor to go in with me, how do I go about finding one. My area is full of college students looking for residence. There currently isn’t enough housing for them, so of course rental properties in the area are valuable. I know there are some great opportunities to be had in the area, and I would hate to have them slip by me. What should I do to get started?
For starters, I’d recommend starting with an easier purchasing strategy. It sounds like you’ve found some great opportunity (potentially), but how much work is it going to be to buy them and is it worth it?
Regardless, it sounds like you need a partner. Start putting the word out to friends and family that you’re looking for a partner. In addition, start attending local investor clubs and look for partners there.
When you’re new to investing, a better way to start (I mean better than rentals) is to work on “quick cash” strategies. If you have no money to get into deals, you would be in a better position as a property owner if you focus your earlier efforts on building up a cash bank account. Once you have a good reserve in place, you’ll be more ready to buy and hold.
In the mean time, you’re getting experience in real estate, so when you do move into the world of buy and hold, you have some experiences to draw from…and will have a far better chance of success.
Good luck!!
Stacy
If you are looking to buy property, the best financing is usually for owner-occupied.
There may be special first-time buyer loans or rehab loans available in your area.
Think about getting a duplex and putting tenants in half to help with the mortgage. Live in it and fix it up.
Refinance the duplex, or sell it when it’s fixed up. Now buy the next property.
You need to do a lot of research in your local area-read the newspaper, talk to Realtors and lenders. Have good credit or work on it. Don’t give up your day job, or get a day job. Real estate investing takes knowledge, money and work.
Let us know what your plans are, and good luck.
Furnishedowner
I would first approach the properties that are owned by people who do not occupy them. Propose to them a lease option or seller financing. If the property is boarded up then it is not making them any money and anything you offer that will result in cash in there profit from a problem property will likely be a good outcome for both of you. Buying from the housing authority (at least here in Seattle) is a major pain in the rear.
Chris