All of them? All SEVEN? How on earth would that be possible?
Jonathan, my friend Terry’s son, had blown me away with this proposal that I buy seven rental properties all at once. But then explained something called “cash flow” and how that after all was said and done, I would see $2,500 a month in cash to be used for future investments. It sounded like fascinating news, but what he said next was what stopped me in my tiny investment tracks. All you need to put down on these properties is $133,000. So where would I get that kind of money?
I then started to pay attention to the YouTube guys and their instructions about finding the money. One way for me was to seek what was called a HELOC or a Home Equity Line of Credit. Another way was a Home Equity loan. So I began to call around to see when I would borrow on the equity in our house. I called my Credit Union, where I had an account for over forty years. I called Chase, Flagstar bank, and even a local bank in Traveler’s Rest SC, where I knew the manager. All were no-goes because of one thing, our house was NOT our primary residence. To make the loan more secure, banks don't usually lend on rental properties. Or at least that is what they told me at the time.
I had done an appraisal on our house and discovered that we could probably get around $140,000. I was seeing Seven House Portfolios dancing in my sugar-plum dreams. However, I couldn’t get that six-figure loan. I couldn’t even believe that I wanted to go into debt again. I am nearing retirement, and usually, this is the time in life to become more frugal and not more extravagant. But here I was trying to find the pot-o-gold at the end of the rainbow.
I had asked God to stop me dead in my tracks if this was not a good idea, and I knew that he could do just that. However, each time that I came to the end of the proverbial road, I seem to think, “Who knows that God isn't testing my faith?”
I had exhausted all of my loan sources. However, then God seemed to open a door, with a thought that came to me. Maybe my property manager Amie might know someone who would be able to get me that loan. BINGO!
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