Funding advice

[Ace Saxon]

I am looking at a few properties to be my first buy, fix, and hold property. I am needing some help figuring out the funding part. I have a down payment and good credit and my plan is to buy, fix, then refi for a 30yr. My questions are what would be the best source to get in the house for no more than 10% down and what options let me close the fastest? I hope this all makes sense, thanks in advance.

[Nicholas Armstrong]

Originally posted by @Ace Saxon:

@Nicholas Armstrong, it's not that I can't do 20% I just want to have as little in the property as possible. I guess a better way to ask my question is what are some ways to get 90% financing without using a bank? Not real familiar with hard money loans but have been advised to use them as a last resort. Again this will be my first deal so any advise is helpful.

 I'm not a creative financing expert. But I've heard of several different ways to purchase without involving a bank. 

Private money lenders being one.

I've also read about people using HML's to purchase commercial or residential property and refinancing after rehab is completed. But I would recomend getting your feet wet before dealing with hard money lenders (HML's) or atleast I'm not going to until I'm a little more confident in myself finding a REAL deal.

There's also something called a "refi takeover" I'll copy and paste this process here (I did not write this):

Seller “Refi” for Takeover

This no-money-down technique is as amazing as it is simple. Ask the seller to refinance the property for your offered price, (for 30 years fixed at no more than X%) subject to a one-time qualified assumption by you. Take over their loan at closing. The seller walks with cash, and you buy with no money down!

If a seller has equity in the property and has been unable to sell it, ask him to get a loan on it, let all parties know that once the property is refinanced, you are going to assume the mortgage with a release of liability for the owner.

An alternative; the seller pulls as much cash out of the property from a refinance as he can and the investor takes title subject to the new existing financing.

The seller has the cash and the investors has the property.

Another alternative ---- ask the seller to give you X$ for repairs at time of settlement.

Another alternative --- agree to give the seller a Hybrid bonus once the property is sold....10- 20 - 30%.

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You could also try to find a partner or two to fund your ventures. 

There's also companies on BP's that do JV partnerships. Funding 100% of purchase price and half or all of he rehab costs. After property is sold you split profits as much as 50/50. This could be a good way to gain experience while making some cash to fund your own project.

I would suggest learning as much as you can here on BP about Creative financing.

You could also read Brandon's book about purchasing houses with low or no money down.

Hope this helps!