Hi my name is Jonathan Sebastian I am a new RE Agent with Coldwell Banker. I have been interested in Real Estate for awhile now. I am currently looking to purchase a multi unit as my first investment peice. I was just wondering from all you Vets in here what is the best way to do this, Conventional Loan or what. Much thanks in advance and see everyone around in the future.
Make sure this is the right property. I have had multiplex’s also and they can be time consuming if not done right.
congrats on your new REA license… now in regards to your purchase of this multi-unit, do you currently own a any property that has equity in it? Its all about using OPM for all your REI deals…
No see thats my problem, no property to start out with that i could use the equity from, thats my real problem. On top of that I don’t have much money to start out with either… Kinda puts me in a bind because the few multi-units I’ve found will definatly be making positive cash that I could use for future investments. This is where I was hoping someone could steer me in the right direction who might have been where i am at or, who might just be able to shed some light on my course. Thanks to all!
Alright lets look at this deal… What makes you so positive that this multi-unit will have +cashflow? Are you part of a REI club in your area? If not you HAVE to join one and if so, you should be able to present the numbers to some REI’s and they may finance the deal personally and the payments, interest rates, etc will be set between the two of you… Now since you dont have much money to put in the deal, you will have to make a great impression on the investor for him to finance it for you… He may only give you enough put down and enough for closing costs… it all depends. They are easier to work with than the bank when it comes to creativity and working with people…
From personal experience you will need to have a couple of things in order prior to approaching a REI at a club meeting and seeking financing:
- Be a member of that club (at least be a member of A club).
- Understand the creative options available in the REI industry. Not just the conventional options as you were taught in realtor school.
- Be prepared to tell the investor a little about yourself, goals, etc… They want to know who they may be giving their money to.
- As with all property have an exit strategy, unless its a rental you plan on keeping for a while.
I hope you get the point of what I am saying… There are still options available to you, you just to put yourself in the right place at the right time and REI clubs are good places to start…
Keep studying and stay focused…