 | No Dinero - Or it's in too many places!posted by Jennifer Herriage, SponsorWednesday, December 29th 2010 @ 12:43 AM  (2 ratings) |
Thinking of buying an investment property in 2011? Figure out the money part first. You may need to consolidate your cash (or cash advances) or your proof of funds will be 20 pages long! Looking for houses without nailing the financing first is like going to the grocery store without your purse (wallet guys)! I does you no good to find what you want if you can't pay for it.
Are you going to buy an investment property in 2011? The first thing you need to nail down is your financing. Many investors call me and want me to find them an investment property when they don’t have a clue as to how they would pay for it if I did find them one.
When I first started looking for houses I just got out of college in the early 90’s. I didn’t have any money and lived paycheck to paycheck. I did, however, have tons of credit cards that I had never used. The first house I bought was about $25,000…can you imagine me at the bank with 10 different credit cards getting cash advances so I could take the cashiers check to the title company?
The point is that it doesn’t have to be pretty, but you do have to have a plan on where the money will come from and how you will pay for the remodel. Credit cards are one option. Another option is using hard money lending.
The first time I used a hard money lender I thought I had really hit the big times…I didn’t have to wait at the bank for hours for the bank teller to advance my 10 different credit cards…I just showed up at the title company and my lender wired the money!
And after you have some experience under your belt and you have saved some money you can go to a bank and ask for a line of credit. This can take some time to achieve, but besides paying cash, having a bank line of credit would be considered the best option for an Investor. It is the easiest and costs the least in interest.
Every year when I renew my line of credit, I am reminded of my earlier struggles with obtaining financing. It wasn’t easy, but well worth it!
If you do purchase an investment properties this year please consider me to help with the design aspect of your remodel and with listing and selling! I would love to share with you my experience.
Happy New Year!
Jennifer Raney Herriage
972.814.3612
jenniferherriage@ebby.com
