What’s the best way to get funding for your real estate portfolio? Specifically, after you’ve reached the 10-mortgage limit with traditional banks, what other avenues exist for funding? That’s the first question I’m answering on today’s Q&A!
On this episode of Investing in Real Estate, I’m answering three of your questions on how to get money for real estate, ways to invest a smaller amount of money, and how much you should save for reserves on a rental property. Click play to hear my answers to your best investing questions!
On this episode you’ll learn:
- How to grow your rental portfolio after you hit the 10-mortgage limit.
- Ideas for investing a smaller chunk of cash.
- What to consider about saving reserves for your rentals.
How to Grow Your Rental Portfolio After You Hit the 10-Mortgage Limit
At Morris Invest, we would suggest our clients use our Non-Recourse Program, which allows investors to use an asset-based loan. A non-recourse loan is a business loan, and although it requires a higher down payment, it is a great option for investors who don’t want to buy properties in their own name. You can see my full video on non-recourse loans here. If you’re a DIY investor, you may still be able to utilize a non-recourse loan, but I will warn you they can be hard to find. My first suggestion for you would be to build relationships at your local banks and credit unions and see how they can help you reach your goals. Another option is to look into hard money lenders. I can recommend Jasey Capital.
Ideas for Investing a Smaller Chunk of Cash
Although investing in tangible real estate properties is my bread and butter, I understand there are situations in which buying a property isn’t a realistic move. Here’s what I can suggest:
- Investing in real estate notes through Connect Invest
- Buying gold and silver through Lear Capital
Both real estate notes and gold are great options. I can’t give you advice, but do what aligns with your interests, goals, risk tolerance, and timeline.
What to Consider About Saving Reserves for Your Rentals
Setting funds aside when you own rental properties is a wise move. We like to prepare our clients to have a reserve set aside that can cover 3-6 months, just in case. However, if you’re having frequent vacancies, it sounds like there is a root cause. Please be sure to do your market research and invest in markets with job growth and diversity. Additionally, be sure you are not over leveraged when you buy your rental properties.
Ask Me a Question at morrisinvest.com/clayton
Episode Resources
Book a Call with Our Team
The Power of Non-Recourse Financing
Jasey Capital Group
Lear Capital
morrisinvest.com/connect
The Millionaire Real Estate Investor by Gary Keller
morrisinvest.com/Clayton
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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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