Rookie Reply: How to Buy Rentals Once You’ve Run Out of Cash
This week’s question comes from Jerry through Ashley’s Instagram direct messages. Jerry is asking: I’ve finally made the plunge and bought three investment properties. After I rehab, rent, and refinance them, where can I get more money to invest? Is there a type of loan for investors or do I need to look into a hard money lender?
Rental property loans are aplenty if you’ve found the right deal. Most veteran investors already know that once you have a good deal, it isn’t hard to find the money to fund it. But, before you build your rental property portfolio, you’ll need to know which options are out there. Don’t worry, you won’t need to spend months or years saving up for another large down payment. There are quicker ways to build a cash-flowing portfolio.
Here are some suggestions:
- Go the commercial lending route and look into DSCR (debt service coverage ratio) loans
- Partner with another investor or a private money lender to finance your next down payment
- Cash-out refinance from your previous properties and recycle that money into your next deal
- Once you have some investing experience, reach out to hard money lenders and ask for their terms and rates
- 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).
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Check the full show notes here: https://www.biggerpockets.com/blog/rookie-220
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