Hello everyone

Well I am new to this forum. I have been researching for over a year and have a mentor when I need one......but it is always good to get other peoples advice as well. I am going to browse around and try to find the answers to my questions but I will list a few and feel free to answer them for me!!

My biggest question is financing. I have calculated myself to death with debt service and running all of the expense and profit numbers...so I have that down....but....Is there anyway to get around the 20% down. My goal is to buy a bunch of muti-units manage them and do real estate sales as well. I have a friend who is a broker and wants me to work for him when I do....but I am trying to give myself solid footing first. I got fried by the stock market so I am set back on saving for the 20% for a few years.....any opinions would be nice.....

Edited: 06/26/2010 at 09:49AM by Daniel Kee

Uwe S.

Real Estate Investor · Chemnitz, Saxonia

1146 posts
12186 Influence
12 Awards

Icon_minipost Sep 24 '09, 10:06 PM

Hello Daniel,

Keywords: Owner Financing under 20% down payment, I see every day multi family houses with possible owner financing.

Start here with Du - or Triplexes for max $75k or depending on your cash with 5+ buildings, they must be rented and in good shape thats the main.
If you donÂ´t see such houses ask the owner direct for short term financing max 3 years, some owner comply with your offer.

-Uwe

Edited: 06/26/2010 at 09:49AM

Ken Spohn

Real Estate Investor · Phoenix, Arizona

5 posts
118 Influence
1 Award

Icon_minipost Oct 07 '09, 11:19 AM

Daniel

Find someone to invest with you for the 20 or 30% down. Give them a piece of the action. It's a win / win. I'm working on one right now that will cash flow $5-6k per month with 100% private finance.

The cool thing about private finance is you create the terms ...not the bank.

The question you don't ask will always be NO. Ask people to invest with you, but do not ask to borrow money...it's a lot easier

Best!

-Ken

Edited: 06/26/2010 at 09:58AM

Jason Simpson

Real Estate Investor · Norman, Oklahoma

23 posts
41 Influence

Icon_minipost Oct 07 '09, 11:41 AM

Hey Daniel,

There is PLENTY out there right now that people would love to sell on owner financing. While researching is great, be sure to get out there and TAKE ACTION! Most "investors" seem to be "professional research" in my opinion. I don't know whether you've done any deals or not, but now is a great time to get started.

If you find a deal, then the money will follow.

(That isn't a typo...it's just very important to understand!) I've found that to be true regardless of the situation...sure, it might not end up being the same exit strategy that you intend it to be, but time after time I've seen investors that don't have the cash down, but have the sheer desire, determination, and make the effort...and it doesn't have to be traditional! Think outside the box bro!

When you look at a property, ask yourself the question "How can I get into this property at the right price and terms, with nothing out of my pocket?"...the subconscious is a very powerful thing!

Right after my bankruptcy, I was able to get a deal at about 50% of market value, with the owner willing to take it on a promissory note WITHOUT A MORTGAGE...and then after I had obtained a line of credit on that "free & clear home", he took HALF of what I owed him for the full payoff...ponder that for a minute!

Sorry this post was so long, I just want you to focus on what you CAN do as opposed to stuff that you've got no control over!

Edited: 06/26/2010 at 09:58AM

Ken Johnson

12 posts
39 Influence

Icon_minipost Oct 08 '09, 06:47 AM

Hard money a possibility? If you get a good deal, geta HML then reffinance full purchase price thru a traditional financing.

Edited: 06/26/2010 at 09:59AM

Uwe S.

Real Estate Investor · Chemnitz, Saxonia

1146 posts
12186 Influence
12 Awards

Icon_minipost Oct 09 '09, 05:37 AM

Originally posted by INVESTQR

Hard money a possibility? If you get a good deal, geta HML then reffinance full purchase price thru a traditional financing.

I think HML do nothing over 70% LTV, so he must have min 30% down.

-Uwe

Edited: 06/26/2010 at 09:59AM

Alan Brymer

Real Estate Investor · Provo, Utah

90 posts
268 Influence
3 Awards

Icon_minipost Oct 12 '09, 08:57 AM

To finance multi-unit properties without putting 20% down, I would either:

1) Find lenders that don't require 20% own, which will be tough

2) Find a money/credit partner who has the unds and have them get the loan. Then fin some way to put it in an LLC you both own or somehow become part of the deal yourself and outline who does what and what you'll both earn.

3) Ask sellers to finance the sale, so you can take over their loan without having to get your own.

Edited: 06/26/2010 at 10:02AM