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Where To Get Funding
On this episode of the Cash Flow Guys Podcast Tyler discusses many of the common misconceptions that new (and some experienced) investors get caught up in.
Easy Loan Program Scam:
- Predatory lenders and terms (not “hard money”)
- Application fees or upfront fees are trash
- Takeaway: Lenders should be competing for your business, they are not doing you a favor..they are making an investment.
Getting Qualified:
- Go see a lender (Mortgage Broker) and get qualified, if they say no get into a credit repair arrangement.
- Understand the programs available, Fannie Mae, USDA, VA if applicable…talk to small local banks that make local underwriting decisions.
- Educate everyone you know about what you are doing, many will want to come along for the ride..too scared to go at it alone…
Buy, Fix, Occupy, Repeat:
- FHA allows a 3.5% down payment, seller can pay up to 6% of the purchase price towards closing costs at current.
- Save every nickel, buy a place for as little as $3500 out of pocket and live there for one year. When you move out it cashflows $200 per door or $400 for the property. Save every penny of that for one year = $4800, now go buy another.
- In 10 years you will have 20 doors (10 properties) and $48,000 or more passive income taxed at the LOWEST rate allowed by law (if at all).