Profile picture for aprayingman07

Where does the money come from?

I would like to purchase a building to rent out the apts in it but how does one get the money needed to start the process, do repairs, etc.? it can easily take a million or more to buy and fix a property before its ready to be rented out.
  • December 02 2013 - Flatbush
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Answers (8)

Profile picture for Ofe Polack
Money comes from many sources, the problem is not where it comes from but how able are you to manage the investment.  May I suggest that unless you intend to pay cash for the investment(s) that you talk with a few mortgage brokers who can map out for you the finances.  Good luck!
  • December 03 2013
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If you do not have the money yourself, then usually there are lenders and banks that will fund this. It's not as easy as walking in and getting money. It requires much more than that and you will likely need a down payment as well. Well I hope this helps and good luck!
  • December 02 2013
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Profile picture for Blue Nile
Normally the money comes from regular hard work at a regular job.  (And intentionally saving it).  As they say, there is no such thing as "free money", except when the Federal Reserve buys U.S. Treasuries or Mortgaged Backed Securities with imaginary money, or the U.S. government borrows money from China and Japan and plans to pay it back with more borrowed money from China or Japan.

Money also grows on trees, if you pick oranges (or similar) and sell them.  But then you are probably doing more work than most other jobs.
  • December 02 2013
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You can start small. Go with duplexes or tri plexes.  Do your homework on the rents of the existing property. You want to get into a positive cash flow property. Talk to your lending institution, they will give you the best advise for starting out.
  • December 02 2013
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Profile picture for Ed Rorrer
Contact a lending institution of your choice and see what you qualify for.
  • December 02 2013
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If you are asking that question here, sounds like you may not have enough money - nor experience - to buy apartments. I would suggest investing in REITs, these are pools of money which buy apartments, hotels, and even skyscrapers. Let others do the heavy lifting for a small management fee, similar to the mutual fund. Here also is an  INDEX of REITs, so you can invest in the value of a group of REITs at the same time limiting your downside...
  • December 02 2013
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Profile picture for wetdawgs
You start with saving up a down payment, then  you get a loan from a mortgage lender.     Have you put together a business plan showing cash flows?

  • December 02 2013
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Usually from a bank that gives a loan based on the marketability of the concept. Same way a skyscraper is built.
  • December 02 2013
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