Posted by Paul Macdonald on November 15, 2000 at 07:30:31:
Wasn’t being negative. Just the facts. I didn’t say he couldn’t buy with no money down. I said he wouldn’t be able to get Fannie/Freddie financing with less that 5% down (and thats unlikely) on an owner occupied duplex.
Scott asked what was the best type of loan for his personal scenerio; starting out, no additional property, little cash, moving to a new location therefore no job history. If you reread my post I was talking exclusively about Fannie Mae/Freddie Mac conforming financing. He’ll save lot’s of time by not bothering with Fannie/Freddie as he posted. And people should know the guidelines in the financal arena.
Any good craftsman knows his tools. And if you want to buy lots of real estate your primary tool is financing. Doesn’t matter if its Fannie/Freddie, seller take back, hard money or anything in between. Its all financing.
With good credit, a good history and cash flow on the second unit there are absolutely other options for Scott. Which goes back to my original question: what does he classify as “best”? Terms? Rate? Lowest cost?
What I want to do is, buy a duplex then rent out one side, and live in the other side for six months. Then I would like to buy a second duplex and repeat the process. What is the best kind of loan I can get For this type of purchase? I really want a no money down loan, being that I have very little money to start with. I am moving into the Sacramento,CA area in Jan. I am 25 years old, and I want to get into RE Investing. I am going to start Flipping houses for fast cash As soon as I get a few duplexes. But My ultimate goal is to have six or seven apartment buildings. So I can retire at the age of thirty. So any info would be appreciated.
Posted by Paul Macdonald on November 14, 2000 at 12:45:06:
By best do you mean the lowest rate? best terms? lowest cost? With a duplex you’ll normally can go as high as 90% LTV with Fannie/Freddie. If you have superior scores and incomes you can go as high as 95%. No money down on a duplex just ain’t going to happen with conforming money.
Don’t be so negative … I bought 3 duplexes at one time w/no money down… 90% 1st and 10% carry back—plus I am a Realtor so I actually got $5000 back at closing…
… I bought 3 duplexes at one time w/no money down… 90% 1st and 10% carry back—plus I am a Realtor so I actually got $5000 back at closing…