Real Estate Investors Use Creative Financing for First Properties
Four investors bypassed traditional down payment requirements by leveraging 401(k) loans, home equity, and vehicle titles to purchase their first investment properties.
Four real-estate investors utilized creative financing strategies to acquire their first investment properties without having the traditional 20% cash down payment typically required by lenders.
Lucy Zheng funded a rental property in Detroit by combining personal savings with a loan from her employer-sponsored 401(k) plan. In Florida, Mark Kearney used a home equity line of credit from his primary residence to purchase a property in the Shenandoah Valley of Virginia.
Kent He and his wife leveraged a home-equity loan against their San Diego residence to invest in a short-term rental. Mike Savage secured a loan against his paid-off truck to cover a $10,000 down payment for a house in South Carolina. By leveraging existing assets—including retirement accounts, primary home equity, and vehicle ownership—these investors were able to enter the real estate market despite limited liquid savings.
