Kept smelling coffee and couldn’t figure out what it was. Opened up a door next to my storage unit and there was a guy sitting on a couch watching Netflix.
Other than people asking me how to find good cash flowing properties, how to get money to finance a property is likely the second most often asked question that I get.
So, I will be going over in the various methods used to purchase and hold rental real estate. Some of these I use almost exclusively, other ones I do not and in those cases I will differentiate between the two.
The old fashioned way
None of the gurus will tell you, but simply having regular employment, a decent credit score and a surplus of cash each month is by far the best and easiest way to get into rental real estate. If this is something you sorely lack, it may simply be best to start off by going to the local library and getting a few Dave Ramsey books and read about how to get your personal finances in check.
The simple fact is that creative financing is rarely easy and requires education in various deal structures among other things. This isn’t to say the other ways are impossible, however do realize that most real estate gurus selling courses have a desire to sell you on a dream, not on reality. Virtually all of them make money to sell you dreams, not on deals you close or whether they come through on their promises.
Seller financing is most likely the easiest way for someone with minimum cash outlays to go out and buy a rental property or some sort of real estate investment. The same with seller financing most of the time though, is the fact that you typically will get a property at a crummy return rate because the seller is some sort of investor and realizes that if you were in a good position to purchase it you would go with a bank that offers a very low interest rate and purchase the property out right. That is it to say you can’t make money on them it however is just the fact that you may have to the ladies that cash flow for a while under seller financing.
Most of the seller financing situations that I have seen the seller will for a period of anywhere from 3 to 20 years as a loan into the buyer, these are typically also very high interest rates. He’s basically do not exceed that hard money lenders especially since you can negotiate with Nick so ur face to face an attempt to get a better rate. Most of the deal that I have seen or in the 6%-9% range for seller financing. The absolute truth is would be to purchase getting them running well and then cash out through a local bank. You may still have more money in it then a good cash deal, but at least you have a property in something to show for it. Come on over to an article that I will be writing about the ways to find property this and realize in order to find seller financing deals you after market yourself and what you were doing in order to find me two kinds of things.