The traditional path for putting down a down payment is using cash reserves from a savings account. But not everyone has enough cash available to pay for a down payment on a rental property. What are some more creative ways of finding a down payment?
That’s the first question I’m answering on today’s show. I’ll also be answering listener questions on investing in a self-directed account, plus how to start the process of market research. Please join me for the first episode of 2022!
On this episode you’ll learn:
- Ideas for coming up with a down payment.
- How to determine if you should invest in a self-directed IRA.
- What to look for in a rental market.
- Plus, my New Year’s wish for you!
Ideas for Coming Up with a Down Payment
This is one of my favorite topics, because creativity is truly a core principle of building wealth. Here are some ideas for coming up with a down payment: tapping into your home equity, consider private lending or hard money lenders (DLP comes to mind), or tap into your retirement funds. Here is a video that goes into further detail on coming up with down payment funds.
How to Determine If You Should Invest in a Self-Directed IRA
If you’re working with my team to invest in a self-directed retirement account, it’s possible that we will suggest a non-recourse loan. If you don’t have the entirety of the funds available in your IRA, a non-recourse loan plays well with the self-directed account. One drawback of a non-recourse loan is that it offers slightly higher interest rates than other loans.
I can’t tell you whether or not you should move forward with an investment, but my advice would be to weigh the pros and cons. While a non-recourse loan does offer a higher interest rate, there are many other benefits to this banking product. I would also say that generally speaking, it’s usually a good move to start investing sooner than later.
What to Look for in a Rental Market
When you’re looking for real estate markets, please remember that there is a difference between a hot market and a smart market for investing. Here’s what I look for in a rental market:
- low crime
- job growth
- a growing population
- highly-rated school districts
- landlord-friendly cities and states
- availability and effectiveness of property management companies
Here are some videos I’ve done in the past on finding real estate markets for investing.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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