A question about investment loans
Good afternoon BP!
I have a question for you all. I'm still learning, so forgive my ignorance. I've heard the term "love money" and understand it to be money given or loaned from family. After speaking with a bank, I have also learned that "gift money" as they call it cannot be used as a down payment to obtain financing for an investment. This makes me wonder two things ...
1. When people say "love money," does this only apply when the entirety of the price is covered outside of conventional bank financing? I know for a fact this rule does not count for a primary residence, as I know people whose parents paid 100% of their down payment and closing costs ... if only I could find something to House Hack in my area.
2. If, instead, I had a family member willing to lend me a certain amount as a hard money lender ... is that also not allowed to be used as a down payment?
I'm trying to get into this creative financing idea (since my work won't be buying me properties anytime in the next 20 years). I have a few relatives who may be willing to lend me money, but not enough to fund an entire purchase and rehab cost!