gurrr, okay.
i just got off the phone with the real estate agent,
i was told that if im not living in the investment property that i would have to pay 25% downpayment on that.
wow:o i dont have that money.
i want to start investing baby!!!
how do people buy 0 down and with little down.
im looking for 3 apartment units or something
i have about $7500, and good credit.

i need help!!!
at 25% i wont be buying a house for everrr!!!

Where are you living now? Do you own your own home? If not why not live in one of the units for now and finance owner occupied?

i live with my parents,
im 18!!
just looking to get some generating income, while living at home.
what can i do about this??
only bills i have to pay are visa and cellphone.
cheap to live at home.

It all depends on your income, credit,…etc but if you are going to get a conventional loan to purchase an investment house, you need at least 10% down plus closing costs so I would look at about 15% cash plus rehab costs.

Since you are told this by a realtor, I take it you went to the realtor and told him you want to become an investor and for him to find you a house. There is more to investing than that.

Where did you find this real estate agent? You don’t need to deal with people that are not in the real estate business. You should not talk to retail real estate people. You need to go to your local real estate investor’s club and find a real estate agent there. The people you will find there real estate agents, mortgage broker, appraisers, etc. all know how to work with investment grade real estate.

The reason I buy single family is that multi family will almost certainly require 20% down. But if I find a house worth $100k after fix up that I can buy for $60k put $10k into it I can get a bank to finance the purchase and fix up. That means at the end of this I would have a house I got for $70k that is now worth $100k. I just made $30k on that house. If I do that 5 times I now have $150k that if I can get out of them (refinance or sell them) I can put down as the 20% needed to get a multi family worth ½ million. You do that 10 times and you have $10 million worth of real estate.

What I would do is go to the next meeting of your local real estate investors club to see what people are doing and who they are using to get them there.

hmm thanks alot for some responses,
so your saying with my measily $7500 i should buy a bum single family home, renovate and sell?
and how wouldi go into finding the real estate club?


That is why we do real estate. Look here.

sigh, nothing really in my area.
well yes i found out it was 25% down for business purposes.
which is pretty sucky:(
so i need to earn some cash another way.
how is this whole rehabbing business for everyone?

There are many creative ways to buy and sell. You should use your money for holding costs and maybe repairs.

hmm o where do i start,
i’ve read rich dad poor dad that was pretty interesting.
and i ordered a few books on real estate. like donald trumps 101 book and creathing wealth, hopefully those help me off.
but some forum help would be good.
what should i look for in a deal??

Depending on your area and how the market is right now, I wouldn’t offer more than 70% arv for a home. Now, there will be exceptions that some may want to argue, but if you do it this way you’re more likely to not come out in the red. Search for expired listings, fsbo’s, rental ads, divorces etc. Think outside of the box too. Don’t pass up the ugly homes. However, think logically and ask ask ASK questions. Don’t become attached to a property if the owners are not willing to negotiate. Time is money and there are PLENTY of people out there on the fence who will sell, but just haven’t made that plunge yet. Most of these people are waiting for something to happen, which in case will be an offer from you.

Hi Canadian Investor,
Doing this stuff in Canada can be frustrating, I know. I have 3 buildings in NB. The realtor is somewhat right. If the building is non owner-occupied a conventional mortgage requires 25% down payment. The big six banks and CUs are bound by this in the Bank Act.
After repair values (ARV) mean nothing in Canada. It is the lesser of purchase or appraisal price that sets the down-payment requirement.
CMHC used to have an insurance program for small buildings but they scrapped it.
Some conduit lenders like GE Money will do investment properties with only 10% down-payment but you will pay big lending fees (like 4 or 5 points) and the interest rate will be much higher than a big six bank loan. I believe they may also be bound by a minimum investor net-worth requirement.
Of course if you can find a co-operative vendor, you can do all sorts of creative financing. After you own the building for a year or so, you might be able to get it refinanced if you can demonstrate a significant increase in equity with a new appraisal.

Hope this helps.

hey dave, thanks alot.
do you deal in canada?
i’d like to talk a bit more if you have some time.
do you have msn messenger?
thanks alot.