So you have finished the funding tour and now you are ready to make your millions investing. I’m sure if you are reading this you have had the daunting task of trying to find the funds required for your down payment. $20 to $40,000 is a lot of money to have available to invest in an investment property. This blog is written to give you tips on
how to pay little to nothing down on your first deal.
- First look for homes where the price of the property is $100 thousand or less. Lenders will give you 100% for the renovation but you still are required to put 10% down on a property. So $7000 for a $70,000 property is much more manageable.
- Look at your ARV. The after repair value is very important when making an offer on a property. A $70,000 property with a ARV of $180,000 and renovation costs of $50,000 looks something like this:
MAX Loan Amount $ 93,151 Cash You Need at Closing $ 7,000 Total Project Costs $ 149,789 Selling Price $ 180,000 Net Profit $ 30,211 Return on Investment (ROI) 20% Annualized Return on Cash 755%
As you can see a profit of $30,000 was made on a small investment. At aspire Home Funding we provide you with the guidance to guarantee your success! Follow me on facebook and twitter to find out more ways to guarantee your success in real estate.