ACQUIRE RENTAL PROPERTIES AT LESS THAN THE BANK 20% DOWN.

This is a simple concept, yet many investors are still not taking advantage of this opportunity. 10-20% down is required now on all investment property mortgages. That forces out many investors or limits the acquisition of property to 1 or 2 deals. If you hold for 12 months then its possible to refinance and cashout to 70% LTV

Rehab to rental is the answer.

Rehab to Rental Loans

1. 80-90% loan to cost financing

Find fixer upper homes and acquire the property
 Once repairs are complete, rent the property.

2. Convert to 30 year   /  permanent loan put into rental service. Usually refinancines are no more than 80%

ADVANTAGE:

0-5% DOWN (not offered today by conventional loans)

BETTER TERMS, BECAUSE OF LOWER LTV FINANCING, RATHER THAN 0 DOWN CONVENTIONAL LOANS

What to expect:

Typically the only out of pocket costs are 450.00 for an appraisal.
If your LTV allows, roll in your first draw at closing to keep out of pocket expenses low.

These deals are judged from the financial strength of buyer and the quality of asset (the property).

Expect better terms for better credit and ability to prove income. 100% financing is doable for most credit situations , its just that  in order to achieve the best terms, financial strength and experience is key in the decision making process.