How does everyone here mostly buy there properties ?

General Real Estate Investing
1

How does everyone here mostly buy there properties ?

Cash ?

0 Down Financing ?

10 - 20 % Down ? ( Does anyone here do this ? )

Equity ?

Owner Financing ?

Anything else ? …

2

I have bought two properties with cash borrowed from a relative with interest. This money is no longer available, so we are now putting 20% down and carrying a mortgage.

3
How does everyone here mostly buy there properties ?
[u]*It's their not there[/u]* ;D

Having said that I buy all Cash!

4

Picky picky. ;D

5

I try to buy all of them cash and then get them fixed up and than refi them. But when funds are a little low or I have to much money out in other properties I will put 10-20% down to secure a loan.

Buying cash really helps as far as making the offer to purchase the property seem more attractive to the seller and as well as making for less headaches trying to get the property appraised, and the lender on the same page before the closing date.

The hard part about buying properties cash IMO is building up that cash capital to be able to go out a buy a few properties at a time and still be able to run the ship with some chase reserves.

6

I concentrate on subject2 deals. I am usually open for HML if a fixer upper comes along.

7

So far I have bought owner finance, regular mortgage refi, and hard money rehab and refiing right now. MOre properties on the way as soon as the slow bank gets done refiing my rehab.

8

I buy with 100% financing mostly still. I like to look for motivated sellers that can still wait 3weeks for a closing. If the deal is right, then HML. if I am going commerical than I need to shell out the 10-20% and the ocassionally purchase I need 5% down.

9

the deal usually dictates the method for me. My preference is usually maximum leverage assuming their is plenty of equity to cover risk.

lance
realvestors

10

I use a flucuating combination of cash and a LOC for residential rehabs. For commercial rehabs, it’s the same thing but then I refi to some long term loan. It takes me a while to figure out what to refi to after a very detailed analysis that is guaranteed to give me a headache.

11

If I have time, I use RegionsBank. They have a very aggressive loan program where I can borrow up to 80% of the ARV (yes, the ARV, not the purchase price, meaning that they will finance 100% of the purchase and closing costs) and get up to $10,000 at closing with no draw schedule. It’s slow, but it’s cheap.

If I am in a hurry, I have a good friend who will loan me money on five minutes’ notice at 12% interest and 3-1/2 points on the back-end.

12

Thats great! I need a friend like that too.

13

I always buy 100% financing with money included for taxes fees and fix up in the loan. I never end up with any of my own money in the deal. I started out putting 10% down and buying and using my own funds to fix them up. I was running out of money before I was running out of deals.

14

I use a 90% LTV Construction loan. One year balloon with interest only. Works for me. Just have to make sure I’m done and sold within that year obviously but wouldnt do a deal if I wasnt confident in that in the 1st place.

15

soooooo, I’m just starting out here… in the early stages of this (msotly research right now). So it’s bad to put 10-20% down? I know why 100% cash is a preferred option, but could someone explain why the others aren’t so desireable?

Thanks in advance!

-Miss Harris

16

It’s not necessarily a “bad” thing to put cash in. However, when you’re just starting out (really, always), you should focus on liquidity. You don’t want to put 20% into a property and then not have cash for a repair or an interest payment.

Also, if you are putting an average of, say, $20,000 into a deal as 20% down, and all you have is $20,000, you’re basically limiting yourself to one deal. Even if you have $100,000, you’re cutting yourself off at five deals. If you’re looking to do only two deals a month with an average three-month hold (minimum), you’ll be into six deals in only three months–and out of cash.

So, it’s not that there’s anything bad about putting money into a deal, so long as you’re sure that you’re not going to run out of cash to do all of the things you will need to do. (I’ll set aside all of the textbook talk about capital cost…I mean, sure, if you can get money for 6% all day long, then you should never put any money into a deal. Conversely, if your money is costing you 100% APR, then you should probably put as much cash into the deal as possible…and so on.)