I always figured I could get %100 financing to get me started in real estate investing. That is not the case anymore in today’s market.
There are plenty of deals out there. I find them all the time. What i can’t find or figure out is how investors are buying these investments. How do you meet the capital requirements of lenders (20%)? where do you get the capital from?
:help
I personally just put 20% down on the property. I get the capital out of my bank account.
I am in the process of getting a LOC to help with the financing the properties, but the market is pretty tight right now. My issue is more that banks are trying to keep all the loans in my name without the LLC being involved while I am trying to push all the loans to the LLC.
Trying to buy a property (or hold, fix, etc) with no money is not a good idea no matter the state of the lending market.
Is every lender in your area requiring 20% down? Have you shopped the local banks?
With no track record, you’re not going to find no money down financing. Not everyone can/should start buying properties. If you don’t have any money, you should look at ways to save up for your first purchase. I put down 25% on my first deal, 15% on the next few, and now I basically don’t put anything into the deals.
Find some sellers that will sell on land contract and negotiate a small down payment, then refi out. it’s not really 100% financing but its probably the closest thing you’ll find right now…