Landlords make a fortune from renters all over the United States, and it is easier to become a landlord than many people think. So, how do you become a landlord? It is very simple. There are lending companies that are looking for potential landlords that are disciplined enough to own rental properties. This means there is money waiting for you to start a career in owning multiple properties.
I have friends that worked at fast food restaurants that started purchasing properties at the age of 18. Lenders are simply looking for two things, savings or a down payment and a good credit score. Nolan worked at Café Dumont in New Orleans waiting tables. Instead of buying name brand clothes and splurging his money on entertainment, he saved it all. By the time he turned 18 he had enough down payment to purchase a duplex. He rented one side out and lived on the other side.
We have partners, that are millionaires, that simply started on a hard-working job, saved their money for a down payment, proved their consistent income, kept their credit score up to par, and began purchasing properties.
Unlike owning a residential property, you can possibly purchase properties back-to-back on rental investment homes or fix and flips. Simply manage your business well.
So how do you get started? Once you have your money saved and a decent credit score, find a home that is at a lower cost, so when you rent it, you can receive more than what your monthly mortgage is. For an investment home, most lenders want you to have between 10%-30% for a down payment, to show you have some type of interest and commitment in the property you want to acquire. For a rental or investment home, it is also good to have some money saved to do some improvements.
There are also loans available for you to do improvements on the home. In those cases, you must have a contract with a contractor and have a detailed list of what the costs to repair the home will be, and possibly show what the home will be worth once the improvements have been made. As the homeowner, you want to be mindful that when your property is complete, you can sell it for more than you owe or rent it for more than your mortgage is
Bill purchased an investment home for $500,000. His monthly note with tax, title, and insurance was $3,550 a month. He rents the house out monthly and makes between $9,500 and $15,000. His investment was well worth it, and now he can move on to his next property to rent out as well
Harriet purchased a home for $300,000. She needed $100,000 worth of improvements. Because she had $50,000 saved, the bank loaned her 90% of what it cost to buy and repair the home. After she made the improvements, the home is now worth $725,000. Both the bank and Pat benefited from that deal. This shows us that banks and lenders are looking for opportunities to partner up with worthy citizens to make more money.
Mortgage Dynamics specializes in providing loans like this. Call us today to inquire how to get started
Written by Dr. Levy Q. Barnes, Jr.