Financing Hacks to Buy Your First Investment Property in Massachusetts

Ready to buy your first investment property in Massachusetts? For first-time investors, financing is often holding them back from getting started. The problem is, time is money, and each year that passes lowers your potential lifetime returns, and it takes a pretty penny to make a pretty penny on real estate investments. There are alternative funding sources available, which will allow you to move forward with a purchase now, other than a conventional mortgage. 

By taking the time to learn about all of your financing options, you will have the ability to take advantage of each when they best suit your real estate investment needs. Read on to learn about these financing hacks to buy your first investment property in Massachusetts.

Hard Money

Hard money is usually a private loan from an individual or investors, typically for 12 months, that will allow you to buy your first investment property in Massachusetts based on the property’s after repair value (ARV) rather than your personal information. These lenders typically charge an origination fee of two points.  Because this is a form of asset-based financing, these lenders are not at all concerned about your ability to repay the loan because they will take possession should you fail to repay them. The profits for this type of lender come from the high-interest payments you made and selling the property. Because you are not going through the conventional approval process, hard money lenders can quickly make these loans.

Soft Money

On the flip side, banks offer soft money loans, which are longer-term loans with lower interest. Qualifying requirements for these loans are less stringent than hard money. These loans are the most often used way that that investors finance rental properties. Soft money loans are based, for the most part, on your credit history. These lenders do also consider your ability to repay the loan and DTI. Essentially a combination of both conventional loans based on credit history, along with the asset-based aspect of hard money loans, soft money loans are a great financing hack to buy an investment property in Massachusetts.

Partnerships

Another hack to buy your first investment property in Massachusetts is working with a partner as your source of financing. A credit partnership is a simple way to team up, with you locating the deal and your credit partner has the credit for a loan to buy the property. Allowing you to cosign on the mortgage loan will help to build your credit. You then take out a lease at a higher sales price with the option to buy the house. You would then get a loan, buy the property yourself at the end of the lease option, and rent the property out for profits. Or, you could sell the property. The most important aspect of this partnership is to buy low in a great location. A bargain property usually involves making improvements, but the payoff is well worth the elbow grease.

Double Trouble

Whatever you do, don’t get in over your head using a financing hack to buy your first investment property in Massachusetts. Keep in mind that real estate investing is a long-term business. Careful research into your financing options, understanding both the pros and cons of each, before deciding which path to take. If you don’t feel confident, stop. Reach out to a trusted investor and run the investment deal and the financing option numbers by them so that you avoid costly financing mistakes.   

FHA and House Hacking Options

If you’re a first-time investor looking to break into the Massachusetts real estate market with limited cash, consider an FHA loan paired with a house hacking strategy. FHA loans require as little as 3.5% down and can be used to purchase multi-family properties (up to 4 units) as long as you live in one of the units. By renting out the other units, you can offset your mortgage payment with tenant income—essentially living for free while building equity. Areas like Lynn, Malden, and Revere offer multi-family opportunities in growing neighborhoods. Check with the Massachusetts Housing Partnership and the U.S. Department of Housing and Urban Development (HUD) to explore FHA eligibility and property requirements

Utilize a Self-Directed IRA or 401(k)

Most new investors don’t realize they can use their retirement savings to fund real estate investments through a self-directed IRA or solo 401(k). These accounts allow you to purchase real estate directly, tax-deferred or even tax-free in the case of a Roth. While this strategy comes with rules—like avoiding self-dealing and personal use of the property—it can be a powerful way to grow your retirement while diversifying your portfolio outside of traditional stocks. If you’re exploring this route, consider reading the IRS guidelines for self-directed IRAs or speaking with a qualified custodian to ensure compliance.

Leverage Seller Financing in Off-Market Deals

In some cases, particularly with off-market or distressed properties, sellers may be open to seller financing, where they act as the bank and carry the note. This can help you bypass traditional underwriting entirel, ideal if you’re still building credit or saving for a down payment. You’ll want a strong purchase agreement and a clear repayment plan, and ideally, a trusted attorney to draft the documents. Ephesus LLC often encounters sellers open to flexible terms, especially in cities like Chelsea, Everett, and parts of Boston where traditional financing might not work due to property condition or urgency.

The professionals at Ephesus LLC know the ins and outs of financing hacks to help you buy your first investment property in Massachusetts. Why not get started right now? Send us a message or call Ephesus LLC at (617) 340-6527 today.

At Ephesus LLC, we’ve recently helped families and first-time investors secure property throughout Massachusetts, including Boston, Revere, Malden, Everett, Chelsea, and Lynn. Whether you’re exploring creative financing, trying to break into your first deal, or just want guidance from someone who’s done it before, we’re here to help. We buy properties in many cities across Massachusetts and offer free, confidential consultations—no pressure, no obligation. Our goal is to help you move forward with clarity and confidence. Let’s build your next chapter together. Call us at (617) 340-6527 or send us a message today.