Rookie Reply: How to Buy Your First Rental With No (or Low) Money Down
This week’s question comes from Rodney through Tony’s Instagram direct messages. Rodney, like many investors, has been told that you need twenty percent down to buy a rental property. Rodney wants to know the best way to fund a property without breaking the bank. He's asking: Should I save for a down payment or is there a way to get a rental without the twenty percent down?
It’s not uncommon for real estate investors to get into deals with far less than 20% down. But, for a beginner, this type of task can seem a bit intimidating, especially if you’re looking at your first investment property. Thankfully, the world of real estate presents investors like us with many ways to creatively fund deals!
Here are some suggestions:
Purchase a vacation rental using a second home loan that only requires ten percent down
Pitch seller financing to the seller and walk them through the tax benefits of financing the property to you
Partner up with an investor who can provide the down payment on the deal
Sign a joint venture agreement with another investor who can split the down payment with you
Remember: if you find a deal you can (probably) find the money for it!
And more in the episode…
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Check the full show notes here: https://www.biggerpockets.com/blog/rookie-180