Contractor · Greenville, TX · Member since 2016 · 13 posts · 2 votes
I have, unfortunately missed out on several investment opportunities over the last couple of years due to my financial situation. My goal this year is to clear up my finances and start building my liquid savings to be able to jump on the good deals when I find them.
I have another opportunity that has presented itself, I feel like the area is prime for an increase in property value. I don't have the specifics yet on asking pricing and shape of the property. Unfortunately I'm not liquid enough and don't currently have the resources to leverage the down payment money to pick up an investment property.
Are there investors who will lend the 20% down? Does the 100% Hard Money lender really exist and is it possible on a first deal?
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
10y
To expand on what James said, can you do no money down deals? YES. But it is very hard to pull off. Most lenders will not accept someone else loaning you the 20% down. If the numbers still work a traditional lender might go 40-60% LTV if someone else is funding the rest.
Or you might find a private lender (friend family or associate) that will loan you the full amount. It is also possible to find owner financed deals. Or some combination of all of the above.
The reality is it takes both savvy and generally a track record to pull this off. Just as importantly without financial reserves it probably isn't a good idea to do it anyway. Things always go wrong and if you don't have the savings you are going to be stuck.
To expand on what James said, can you do no money down deals? YES. But it is very hard to pull off. Most lenders will not accept someone else loaning you the 20% down. If the numbers still work a traditional lender might go 40-60% LTV if someone else is funding the rest.
Or you might find a private lender (friend family or associate) that will loan you the full amount. It is also possible to find owner financed deals. Or some combination of all of the above.
The reality is it takes both savvy and generally a track record to pull this off. Just as importantly without financial reserves it probably isn't a good idea to do it anyway. Things always go wrong and if you don't have the savings you are going to be stuck.
Thank you for the input. From what I have read so far, this is pretty much what I have learned.
I ended up with a bit more CC debt than I expected paying for our wedding last November, combine that with having our first baby this coming July, my cash flow is a bit jacked up. We are on a kamikaze course to pay off our debt, adjust to the coming expenses associated with the baby, and improve our reserves and free cash!
In the mean time, any DF/W investors who are interested in investing in the Greenville and Forney area and need a scout, let me know!