How can I get loans to buy multiple properties?

Question

I want to buy property and generate a positive cash flow by renting them. I'm trying to figure out how I can best manage/use my money and get loans to buy multiple properties for rental income. Any advice or feedback is welcome.

How should I space out the loans in terms of time and how much of a down payment should I try to get for new loans that are investment property (not main household)

Thank you for the warning about risk, but that is very generalized -- for me it's a matter of finding good rental markets, and I already have a few on hand. See one thing is I live in california, and for the price of one home in california I can buy 3 in texas... so the risk is distributed instead of all in one house..

I'm sad that no one has answered my question. -- I think most people dont "think big" you really have to be adventurous and smart in order to make it. Most people dont have what it takes -- so to say "why isnt everyone doing it" is kind of trite.

Answer 1

You can purchase houses farily quickly if you have good credit a flexible lender and at least some capital to start with.

I personally purchased 4 houses in 3 months. I know it can be done. I have since sold one and rented 2. I have one that remains to be repaired but am currently lacking the nessecary funds or time to get that one finished.

I would look into mortgages programs that are called Stated. This means less bothering you for proof of income. Less hassle and paperwork. You might pay slightly more but you can often qualify for more using these programs especially if you have 10-20% down payments. I acutally borrowed the down payments as well from a small private lender. He took out a second mortgage on the houses and gets a higher interest because of it. If you have the money I wouldn't recommend this avenue but if you don't its an option.

So with nearily nothing out of my own pocket I've purchased 4 house, renovated 1 completely, done basic repairs at 2 others. Sold 1 and have income from both of the others in less than a year and a half. It's not much income but there's also apprecation the comes into play long term as the houses get paid off and the cashflow increases.

Answer 2

To me you're taking unnecessary risks. Unless you've got the cash (liquid), to get loans to buy properties for rental incomes can be suicidal. What happens if you're unable to lease out the properties? How are you going to repay the loans? How are you going to make good the differences in amount owed should property prices dip? Most banks will need to look into your income capabilities before agreeing to loan you monies. If making money is that simple like you think, there'll be many millionaires in this world!

Answer 3

I agree that it is very risky to buy investment properties and be highly leveraged. However, you have to start somewhere and more times than not, that means with a loan. If you are serious about purchasing rental properties, then consider at least a 30% down payment.

Answer 4

Hi I going to do same as you buy houses and rent them out but I have money ,you will make it work all my best on getting a loan Good Luck

Answer 5

Do you have your properties picked out? What is the total loan amount you need? What state is the properties in?