Question About Down Payment

[Daniel Rosado]

Hello - I'm just starting out and the biggest hurdle for me is related to obtaining the necessary funds for a down payment. I've recently gotten out of debt so I have the credit required, however, I don't have anything significant saved for a down payment.

I just had the thought of looking into taking out a personal loan with a bank to fund the down payment for my first deal. Does anyone have any experience with going this route? Pros/cons? 

Thanks.

[Andrew B.]

have you considered putting money into a savings account every month until you have saved up enough for a down payment?

if you try to borrow money for it, that will effect your debt to income, and banks don't like to hear that your down payment is borrowed funds.

the idea of using other peoples money and investing with no money down is usually something experienced investors do. beginners are probably safer using owner occupied loans to get into multi family properties, or saving up funds for their investment down payments

[Thomas S.]

Spend the next stage of your life living conservatively and saving every dime for investing and for a reserve fund. It is not a race, prioritise your savings.

If you want to be successful investing you must have cash to start.

[Dmitriy K.]

Unless you think the property is hot and you buying it with enough equity in it to flip (consider 2 closing costs, repair and operating expenses), I would not recommend to borrow the down payment. I would find a partner instead or save up. Good luck!