Can’t Finance A Low Cost Real Estate Purchase? Now You Can!

A few months ago, I bundled up my investment properties and sold them to another real estate investor.  When I originally purchased the homes,  I had planned on keeping the houses for the next few decades.  Alas, taxes rose at a rate that rents could not absorb, so I decided to cut my losses and run for greener passages by selling off rental properties.

Selling the rental properties was pretty easy! I listed them on Craig’s List and fielded phone calls and had a buyer secured within two weeks.  Buying the houses, however was much harder work  Not only could I not find financing, but I had to get creative when I did finance my purchases.  At issue was the cost price of the homes.  With purchase prices of $19,500 and $32,000, I was way below the mortgage threshold for traditional lenders. Using my own experience as a template, I’ve devised a method for “backing” into a mortgage when no large bank wants to give you one for low value real estate or rental property purchases.

Since I spend half of my life on Periscope I hopped onto the live broadcasting platform to share how you too can finance a real estate purchase.  Check out the video below for more information.


Here are the options mentioned in the video:

  1. Borrow from your 401(k).  It’s not a method that I recommend because of all of the pitfalls of doing so.  Everything from origination fees to opportunity costs, repaying with post-tax dollars to potential penalties encourage to me dissuade others from utilizing this method.
  2. Take a withdrawal from your 401(k) – but you can’t really do that with investment properties.
  3. Use peer-to-peer lending communities such as or to finance your deal.
  4. Try a personal loan from a traditional lender or bank.
  5. Create an investment partnership or creation from silent partners
  6. Hard money lenders which I don’t recommend.
  7. Pay cash and then do a cash out refinance or a home equity line of credit.

Interested in learning more? Join me, all through the month of May on Periscope as I talk about the process for buying investment properties for under $30,000. I’ll be broadcasting live on Tuesday and Thursdays at about 9:00pm Eastern.  See you there.

Join the newsletter

Subscribe to get our latest content by email.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit
Related Posts Plugin for WordPress, Blogger...

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.