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Real Estate Rookie

180: Rookie Reply: How to Buy Your First Rental With No (or Low) Money Down

Real Estate Rookie

BiggerPockets

Entrepreneurship, Education, Investing, Business, How To

4.71.8K Ratings

🗓️ 7 May 2022

⏱️ 11 minutes

🧾️ Download transcript

Summary

This week’s question comes from Rodney through Tony’s Instagram direct messages. Rodney, like many investors, has been told that you need twenty percent down to buy a rental property. Rodney wants to know the best way to fund a property without breaking the bank. He's asking: Should I save for a down payment or is there a way to get a rental without the twenty percent down? It’s not uncommon for real estate investors to get into deals with far less than 20% down. But, for a beginner, this type of task can seem a bit intimidating, especially if you’re looking at your first investment property. Thankfully, the world of real estate presents investors like us with many ways to creatively fund deals! Here are some suggestions: Purchase a vacation rental using a second home loan that only requires ten percent down Pitch seller financing to the seller and walk them through the tax benefits of financing the property to you Partner up with an investor who can provide the down payment on the deal Sign a joint venture agreement with another investor who can split the down payment with you Remember: if you find a deal you can (probably) find the money for it! 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). Links from the Show Real Estate Rookie Podcast Real Estate Rookie Youtube Channel BiggerPockets Forums Real Estate Rookie Facebook Group  Check the full show notes here: https://www.biggerpockets.com/blog/rookie-180 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

This is Real Estate Rookie, episode 180.

0:05.3

My name is Ashley Care, and I am here with my co-host, Tony Robinson.

0:13.3

And welcome to the Real Estate Rookie podcast, where we focus on those investors at the beginning

0:18.3

of their journey.

0:19.3

So maybe you haven't done a deal, maybe you've done a deal or two, and you're looking

0:22.0

at a scale.

0:23.0

Either way, this is a podcast for you.

0:25.4

So Ashley Care, my co-host, what's going on?

0:28.3

Not much.

0:29.3

I have my little assistant, Remington James, here next to me.

0:32.6

If you're watching on YouTube, you can see a little bit of his cute little face, but

0:38.2

he's patiently waiting until it's time to go to the movies tonight to see Sonic 2.

0:43.6

I love that.

0:44.6

Sonic 2.

0:45.6

I haven't seen that.

0:46.6

No, is that with Jim Carey?

0:47.6

Isn't he in Sonic?

0:48.6

He's in it.

0:49.6

Yeah.

0:50.6

He's in the first one.

0:51.6

He's probably in the second one.

0:52.6

Yeah.

...

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