As a new investor, financing can come with a lot of questions. Financing your first property itself seems like a steep learning curve, but once you find a method that works for you, it makes investing a lot easier. Welcome back to this week’s Rookie Reply. But, instead of just answering one question, we’ll be going over multiple to get you on the fastest path to investing in real estate. Today, we’re touching on topics like how much money you’ll need to invest in your first property, how to build a lease, recommendations for financing without a W2, and how rising interest rates affect investors.
Before you invest, understanding the market you want to invest in is essential. You also have to understand the expenses that come with your property. Once you know these two things, you’ll have a more accurate estimate of your costs. A perk that comes with investing is that the money doesn’t have to be yours. Whether you decide to take out a conventional mortgage loan or partner with another investor, you can creatively finance your deal to have less money come out of your pocket!
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).
Ashley:
This is Real Estate Rookie, episode 226.
Tony:
I already had a W2 job, but I had accepted another offer with a new company and they had offered me a pretty significant raise above what my current job was. So with my current job, I didn’t have the debt to income ratio to hold that second property, but with the new job, I did have the debt to income ratio. So they approved me just by presenting my job offer letter. That was enough of a guarantee for them to say, “Hey, Tony’s a bankable guy. He doesn’t have the income, but we know the income’s coming, so we feel comfortable giving him that loan.”
Ashley:
My name is Ashley Kehr and I’m here with my co-host Tony…