Hey there, so I’m kind of new to this whole lending game, but I managed to fund five properties last year, and I’m aiming to double that to 20 this year. I’ve chatted with a bunch of investors who are on the hunt for funding, and I’ve noticed some common themes that might help out the newbies out there.
A lot of these new investors I’ve talked to seem to be stuck in a bit of a holding pattern. Some haven’t taken the plunge on their first property, while others have only dipped their toes into one or two deals. The main roadblock? Yep, you guessed it, funding. And maybe a touch of fear thrown in there too. It’s a pretty common scenario, but what surprises me is the number of folks who are gunning for 100% financing. I mean, that’s like aiming for the stars, right?
If there’s one thing I wish these budding investors knew, it’s that most lenders aren’t too keen on the whole 100% financing deal unless you’re a seasoned pro with a solid track record or you’ve got some serious collateral to back you up. Or if the After Repair Value (ARV) is a total slam dunk. So, here’s a little piece of advice – instead of busting your chops trying to secure that elusive 100% financing, why not work towards saving up around $15k? Trust me, having that kind of cash to throw into your deals opens up a world of possibilities, just like the big shots have.
Not only does squirreling away those funds give you the same flexibility as the pros, but it also shows lenders and vendors that you’re disciplined and financially responsible – traits that are like gold in an industry where your credit score isn’t the be-all and end-all. But here’s the kicker – I don’t think this message will ever become the norm in the real estate investment community. There’s something about that get-rich-quick allure and maybe just a touch of human nature at play here.
So, to all you newbies out there itching to make your mark in the real estate game, remember this – a little bit of patience and hard work to set aside that $15k could be the game-changer you’ve been looking for. Sure, it might not be as flashy as scoring that 100% financing, but trust me, it’ll take you a whole lot further in the long run.