Getting pre-approved for rental property

[MonTexan]

Buff,
For longer term deals, I would look to people w/ self-directed IRA's. Companies such as Entrust often hold client mixers and educational events where you can network both with people who have money and people who do deals.

Since you're talking about retirement funds, most are happy with a 3-5 year holding period. Most folks that invest through organizations such as Entrust are very savvy about the kind of returns us REI's can achieve, so they'll often demand 12%+ on their money. Again, well worth it as long as the deal makes sense.

Check to see if you have an Entrust or similar group in your area and then start attending meetings to network....there's plenty of money looking for a home these days.

 

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[MonTexan]

It was under $40,000, can't get a loan for that small of an amount. That is why I paid cash in the first place.

Sarah, I also wouldn't totally rule out getting financing on that rent house. I have financed a couple of properties right at $40k ... you just have to work with a small, portfolio lender rather than the big banks.

Maybe it's a moot point in AZ right now though, I would assume lending on nearly any investment property is tough to come by out there.

 

[BuffaloBill]

Thanks MonTexan. I just did a quick lookup for Entrust but there are no meetings in my area. I have family and friends who I think would be interested, but I am working on my approach. I also have an uncle who is a lottery winner! Money is a stickey subject for some people. i will go back to my notes from past RE meetings, seems the subject was discussed.

man I love this forum.......

 

[LagunaLauren]

I did my self-directed RE IRA through Guidant Financial (guidantfinancial.com). Not sure if they have those mixer thingys, but it's a great idea to find people with money to lend through that avenue!

 

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[SaraK]

Sara, I also wouldn't totally rule out getting financing on that rent house. I have financed a couple of properties right at $40k ... you just have to work with a small, portfolio lender rather than the big banks.

Maybe it's a moot point in AZ right now though, I would assume lending on nearly any investment property is tough to come by out there.

I bought it for only $20,000, and that's probably what it's still worth today.

 

[hakrjak]

So what's the status on this? Have you found anyone interested in lending conventional money yet?


- Hakrjak

 

[NoMoneyDown]

Sarah you mention "I am ready to get serious about buying my next rental property", which tells me you have/had rental property/-ies before. One of the myriad of things lenders look at is prior history owning rentals. If you've had a good history managing/owning rental properties then that should definately be a plus.

One of the reasons I say this is that my wife and I bought a house a little over a year ago, and wanted to convert our prior home to a rental. Our DTIR was a bit high and this was right after the financial mess with RE started. I remember my broker saying that since I had a solid track history of rental ownership & management, I would qualify for loans I might otherwise wouldn't.

 

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