I’ve been working with Midwest Equity Partner (they have changed their name to Home Invest) over the last year or so, and in all I’ve helped them find 5 off-market deals. This has been a really good experience and I’ve learned a lot of hands on skills that I wouldn’t have been able to pick up from the Renatus training. Don’t get me wrong, the Renatus training is excellent, but there’s only so much you can learn from classroom style teaching. At some point you need to get your hands dirty and start doing the work yourself. So that’s what I’ve been doing with Home Invest. At this point however I feel like I’m ready to start tackling my own investment properties. I have two strategies/goals moving forward.
- I will buy a duplex sometime around December and get it all rehabbed and ready for me to move in by the end of February. This is when my lease ends at the apartment that I am currently living in. I will live in one side of the duplex and rent out the other side. I intend to finance this property with an FHA 203k loan, which will allow me to only put 3.5% down and also give me enough money to do repairs. Since it’ll be owner occupied, I’ll have to live in the property for one year before I’m able to move out and put tenants in where I was living. At that point I’ll buy a new duplex and live in half of it and rent the other half out. So after one year I’ll have 2 duplexes, living in one unit and renting out the other 3. I plan to do this at least 2 or 3 times. This is a great way to build up rental properties without having to put much money down or requiring me to have non-conventional financing. With FHA rules I’m only able to have one FHA loan open at a time, so the 2nd property I get will have to be a conventional loan which will require 5% down. That’s not that big of a deal however.
- My second goal is to start networking with private money lenders and create partnerships with people who would like to earn a better return on their money than they are getting in the stock market, bank CDs, or generally anywhere. I’ll find deals and work out an agreement with a few people so that I can start building up my rental unit portfolio. If you are such a person or know people like that, please feel free to contact me at email@example.com. I will also look for properties that the sellers are interested in seller financing. They can act as the bank, which will allow them to earn interest on their property value.