Finding OPM

[pato]

Hello Mustachians,

I am hoping to find help in my quest to buy more rental properties with OPM. Here is my dilemma. I realize I am a bit late to the party, but I am convinced that the party is not yet over. I recently met with a mortgage guy who told me that my chances of getting financing were pretty dim..... and here is why. I am self employed and don't make a ton of money(35k), and on top of not making a ton, I write off as much as I can. Making my taxable income history pretty lean. My wife recently lost her job(last summer), so we are currently living off my income, a little cash flow from 2 rentals and savings when we have to....But, here is why I have hope...We have assets... Between us, we have about 400k in stock portfolios(this money is not available because its either in IRA's or has family restrictions), a SFH rental with about 100k of equity that produces about $300 a month in cash flow, 1/2 stake in a condo rental that is paid off and produces about $300(our share) a month in cash flow, and about $100k of equity in the home we live in.

So my question is simple. How do I leverage the assets that we have to buy more rentals?

[Kriegsspiel]

What is OPM?

[Another Reader]

OPM = other people's money.

I can't imagine anyone, even a hard money lender, giving you money.  You have very little income and not much of a track record.  $300 a month in cash flow can evaporate with a vacancy or a major repair.  If someone lends you money in your situation, they are hoping to get the collateral when you default.

In your shoes, I would wait until the wife was steadily employed and you had more savings.  Maybe you can start a side business finding leads for investors with the means to buy.  You could establish some contacts, build up some cash reserves, and improve your knowledge.  Or possibly partner with someone that has the money, if you have some skills or resources to offer.

[Jamesqf]

I agree, you're likely to find it pretty hard going - and if you don't, please share your secret.  With maybe double the reported income (depending on how hard you hit the writeoffs), similar amount in stocks &c with a good share not locked up in IRA/401k, and a credit score over 800, I still had major hassles just refinancing my residence - and that with close to a 50% loan to value ratio.

[arebelspy]

I'm a firm believer in if you find a real deal, the money will come.

Hell, I'll loan you money if you show me a deal where the numbers pencil out nicely.

I've joint venture partnered in real estate several times, with me putting up 100% of the money (they had no money or credit) and we split profits 50/50.

If you find a real deal, you should be able to walk into your local REIA meeting, say "I have a property under contract for 70 cents on the dollar" (hopefully less) "who wants it?" and have people swarming all over you.  Especially in today's market.

My guess is you're finding mediocre stuff and wanting to get it with little to no down to hold long term.  Not gonna happen. (See AR's post for more insight on this.)

Best of luck to you.