I want to buy a small apartment building, how do I raise start up funds?

Question

I want to buy a 4 to 6 unit building & also live there. I know I would have to buy a builing that needs to be refurbished. I know lots of people who are able (& willing) to help fix it up, but no one is able to be an "angel investor". My job now, I get building permits for my company, so I even know who to talk to, to get the paperwork through faster! I am just trying to find a way to raise funds to get my dream started. My credit is ok (upper 600's). It's that way because I have almost NO credit (just got most bad stuff off after being a victim of identy theft). I still am unable to get a credit card (unless I pay extra $$ every year).

Any suggestions on how to start? I am in Orlando now, can move towards OH, PA, or NY. Thanks.

Answer 1

Most people will tell you to just save your pennies & then go for it. I know thats very hard & almost impossible! Even if you get a second job, you will have to save every penny plus some from your 2nd job just for a down payment! If you can, move into a smaller place right now, have your roommate, or who ever, lower your monthly bills & grocery bill. Save that money plus a 2nd job (both of you will ned a 2nd job).

Or, you could advertise in your area for an angel inverster. Add in the clause that you want full responsability for the entire job. That you do not want this "angel" to put in thier opinions in any way. You HAVE to add that after 6 months (or when ever), you will re-pay them plus 15% interest. Have a re-payment plan set up & actually repay them EVEN IF THE BUILDING IS NOT OPEN YET. Have everything in writting, so no lawsuit araises.

Answer 2

I purchased a Hotel and borrowed the money from the Federal Government with low interest.
You have to put down 10% of the loan.

Answer 3

The best way to go is to get a loan with a very low interest rate. This could be real tricky, but you have too sho around!

Answer 4

If you want to spend money you have to not spend money.