New to RE Investing Can You Help with my situation

**FL-RE-Invester** · 05-07-2010, 12:31 AM

Hello,
I am looking at purchasing my first investment property(my first property at all for that matter). I have found a decent 3/2 house that I would like to purchase to rent out. I have a few delimas though, to start, I dont have a down payment or enough money to get the house rent ready( it needs paint/flooring/appliances nothing major or structural). I have used some mortgage calculators and I will be able to afford the monthly payment w/o tenants, but the sooner I can get some passive income the better. The purchase price I am offering ($26000) is significantly lower than the assessed value ($46000) of the house so upon closing I will have $15000-18000 in equity based on the purchase price and the assessed value. My questions are: What would be the best way to go about financing the house without having a down payment? How can I minimize the closing cost and up front fees associated with purchasing this house? Will I be able to access the equity to do the necessary renovations? and How would I go about accessing the equity? also If I do purchase the property How soon after I close will I be able to access the equity?
Thanks for any input

**maui** · 05-07-2010, 08:41 PM

Invester, before going into specifics, have you been pre-approved for financing without a down payment? I ask because if you can't get financing, then the answers to your questions would be a moot point.

**FL-RE-Invester** · 05-07-2010, 11:27 PM

Although I have not been pre-approved yet I am working with my primary bank and a few other banks to try to get pre-approved w/o a down payment. I have been pre-approved before for well over the price of the current house but that was 6-8 months ago and required a down payment due to the price which was about $30,000 more than the one I am considering now. However if i am not approved by the banks I am using are there any other options such as a mortgage broker to help me out with this? Also any info you can provide will be helpful in the future even if I cannot get approval now I am determined to make it as an investor and have faced setbacks before. But I am not going to let that stop me from continuing to persue my goals in the real estate business.
Thanks Again, for all of your helpful info now and in the future

**WEFUND1** · 05-21-2010, 06:48 AM

We have private money available for really good deals where the borrower is picking up the project at 55-65% LTV. We focus in on commercial properties that are in distress or if it is a residential property, it has to be less than 55% LTV. As you are aware, private money and Quick Capital/Hard Money is focused in on the structure of the deal but you still need to have money to work the transaction. Either you have it yourself or you can easily put your hands on it through other resources.

I hope this helps.

Regards,

Jack