Creative ways to get capital

[tjmacintyre]

Hello,

My husband and I are in the early learning stages of real estate investment. I do have a question that I hope some of you would be kind enough to shed some light on; other than joint ventures, what are some ways to get the capital needed to purchase multiple properties?

Sorry if this is a naive question but we really could use some advice.

Thank you,

Dani

 

[wgraham]

Great question!! Lots of ways: Hard money (aka private funding), RRSPS, Vendor Take Backs, Agreements for Sale, Lease Options, Joint Ventures, Debt funding, Promissory Notes

 

[johnsu]

Hi Dani,



There are endless ways to get money. More importantly is have the final investment portfolio objective with dates first documented and then the plan of action to get the money is 2nd. Without the end goal in mind it's very difficult to find an effective way to finance.



Talk to mortgage brokers who are "investors" other real estate investors for ways to finance

 

[RussellWestcott]

Hey this sounds like a great topic for a REIN` event .



I'm in the process right now of creating the The Raising Capital event >> click here



Just finalized the agenda and the speaker line-up... this is going to be an impressive event, taught by people who raise capital on a daily basis. Might want to check it out

 

[housingrental]

Increase your employment income, decrease your household expenses

 

[RedlineBrett]

Create a buzz around yourself and your exclusive niche. Always have deals ready to sell but don't neccessarily be promoting yourself all the time. The best money partners are the ones that come to you.

 

[Charon]

Hi Dani,



There are definitely ways of purchasing property with limited capital. In your situation I would recommend you to start building up your credit score, as you can buy certain properties with zero down payments! (The interest rates will obviously be higher). Heres an interesting article about a real estate investor named Kelly Fry, who started out with very limited capital and ended up building a real estate portfolio which reached up to 48 properties!



http://www.viproperties.com/blog/investor-spotlight-kelly-fry-from-0-to-48-properties-in-4-years

 

[housingrental]

Hi Charon,



Please let the forum know what suitable investment properties can be purchased for no money down from having a high credit score. I have not seen this.



Thank you

 

[Charon]

Below is a reply from Kelly Fry who is a established Rein member:



"On a principal residence, if you have good credit, some of the banks will allow you to buy a property with no downpayment. They will supply the downpayment for you. If you put 5% down on a property purchase your current interest rate would be around 3.29%. If you do the zero down mortgage your interest rate on the entire mortgage would be 4.99%. If you can scrape together the 5%, that is a better option but if you can't, I still feel that the zero down is better than renting because 4.99% is not expensive as a rate.

The other way to buy properties with zero down is to get the seller to carry the downpayment for you. This requires more explanation and is a little more complex. It works best if you already own other properties that the seller can place a mortgage on."



If tjmacintyre or anyone else has further questions or interests surrounding zero downpayment they should contact Kelly Fry at [email protected], she is definitely well versed and knowledgeable in real estate investing having 48 properties of her own!

 

[housingrental]

Both of the two options you have suggested do NOT allow someone to purchase investment properties with no money down