How Did YOU Do It?????
I've had a rental property for the last 8 years now (unfortunately its in a different state) and I just haven't managed to expand. Everytime I think about adding properties (which, BTW, is the ultimate aim) there's always an obstacle [usually it is funding].
Right now, the house beside my rental property is for sale....I see the profit potential, but I don't have the capitol to make it happen.
How did you guys, who may have started as humbly as I managed to start the growth process without the capitol in the bank just waiting to be utilized???
Is anyone out there successfully doing the landlord/tenant thing from another state??? <IMG SRC="images/forum/smilies/icon_confused.gif"> [ Edited by opinion8ted on Date 11/23/2003 ]
Read about subject to investing or Lease/Options. Easy way to gain control of properties with little to no money
[addsig]
Even using more conventional methods, with decent credit, a good mortgage broker can get you financed at 90% of purchase. There are no income, no asset verification loans (though at a slightly higher rate), and some even have loans similiar to hard money without the costs. These typically will lend you a percentage of the tax value/appraisal (70-80%) regardless of purchase price, so with these, you can get in for no money out of pocket.
The real trick to investing is not the financing however, but rather the property (more particularly, the seller). You need to find someone with a property that they no longer want for some reason or another. Unfortunately, that may not be this property.
Roger
Thank you for the QUICK and POSITIVE responses!!!!
I guess the limiting factor , then is ME. I have been pondering whether or not to make a move and this only motivates me.
Tell me, is there an inexpensive way to get an idea about the appraised value of a property prior to ordering a bank (e.g $400) appraisal. I am familiar with one on ditech's webpage but I question the accuracy of this "ballpark " figure. I am sure the sellers wouldn't list the property TOO far above the market value but its almost $70K more than what the "eAppraisal " says its worth. I've tried public records searches but cannot get anywhere and I am too far away to find my own comps.
Learn how to buy with no money. That will envolve either finding a partner(s) or learning new methods (or a combination).
Have you tapped into the equity of your rental property next to the house you want to buy...Ditech.com is fine if you know what you want the programs feature, but sounds like you need a mortgage broker, he can find a program that suits you. You may have untapped capital sources right at your finger tips to use as downpayments to pick up other properties. PM me if you have any questions about financing options.
If I were you, I'd get a line of credit on the rental property and use it as capital equity to purchase the next one....wash, repeat, rinse for the next one, and the next one and the......... oh sorry
Thanks again for thoughtful replies.
Problem with my current rental is that I have very little equity in it. Its a modular home which, though it seemed like a great idea 5 years ago, has turned out to be not the best in terms of profit building. Short of the tax benefits, I've been practically operating in the RED since I left Texas. My ultimate desire is to build some townhomes on the land -demolishing or selling the structure altogether (but that is the subject of a different post on another day). This new property actually caught my eye while I was doing some research on the other project I wanted to start next summer.
Anyway, I digress....
I have no (or very little) equity in the current rental property. So I don't think I can get a home equity LOC worth anything.