I’m on the verge of closing on a 4 unit in D.C. which is costing me $425, fully renovated and closing cost are around $17,000. If/When this deal goes through I’ll be cash strapped BUT I WANT MORE PROPERTY!! What are my options to get more money? Wait and save more money? I also own a small cash cow in Bmore but it’s not enough a month ($500) to do anything with far as down payment or closing cost monies. Please someone tell me how to be able to work another deal after this one!!!
Did the property you just closed on cash flow positeve?
Well not initially, it’s one unit still available with a possibility of two…that should bring in an addition $1600 - $1800 gross and net me $1000 positive cash flow!! My thing is how do u go from being cash strapped and wanting more property…has anyone been in this dilemna?
There is a miriad of solutions, but they involve knowing more about your situation. For instance, what is your credit score? If it’s 680+, you can try and get a 100% loan. If it’s not as good, think about going the Sub2 route. The first thing I would do is sit down fill out a personal financial statement you can give to lending institutions. You can get one here (note: even if you don’t use this to get a loan through a lender, it’s still nice to have and modify routinely for your own tracking purposes).
Hey Hawk_DC I’m a newbie in REI I submitted a deal but don’t know if I went about it the right way. Basically , I’m looking for someone to show me the “ropes”. I’m in the DC area so hopefully we can chat and make $$$$$ together. I have 2 porperties that I know of that need to go quickly. Email me directly if you want to know more about them. Thanks in advance.
We closed one deal and another came about that we couldn’t turn down. We did creative financing. Read my blog below and it will tell you how we aquired our properties. We even had the realtors carry their commissions, how’s that for creative? If you want it, you will get it!
The biggest way I’ve found to acquire additional properties is to be creative with financing, every property you find is it’s own scenerio, (sellers want to get rid of the property, they are very easy to work with)
- let them pay your closing costs.
- let them carry part of your loan and then have them dismiss it. (make sure they record the lien satisfied!)
- 100% LTV with 600 FICO have sellers once again pay closing.
- BUT the biggest thing is don’t get over your head, if you have properties that have negative cash flow, find out why and either correct the problem or sell…do not allow your self to drown…
Joleen makes a very good point. We purchased one of our last properties by assuming the loan and paying all cost. The owner took it! What made it even sweeter is the realtors took monthly payments from us for their commissions. It was a sweet deal (you can read the whole story on my blog below). It never hurts to make the best deal for you first. Always think how a good deal can become an even better deal with creative financing and so on.