First Deal - Duplex, Financing

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Hello BP Community! I found a duplex that I think is a stellar deal. I don’t have a down payment but really want to jump on it. I know a conventional mortgage is likely going to look for a 20% down payment. I do not have the funds to put down nor do I plan to live in it (husband and I bought a house last year for our own residence). The house could definitely use some work but it’s livable now. My limited knowledge of RE investing has been pointing me to go to a hard money lender and get a loan, put some money into it, rent, refinance BRRRR. Is that my main option or is there another avenue I should be exploring? Thanks for any information and/or advice you can provide!! Exciting!!!

A hard money/private lender will also look for somewhere in the ball park of 20% down payment. Be AWARE of scams that will charge you money upfront that say they can do 100%. It is just not real. The only way to get to 100% is through creative financing, which is using a combination of a couple loans to get what you need. A conventional lender will decline if you go for a second loan to come up with the down payment. Only real option is a private lender that will accept a second source of coming up with down payments funds.

Then this second piece of funding would come from a personal loan, business term loan, unsecured business lines of credit etc...

There are lending options to cover 80% of purchase and 100% rehab, but you would have to bring about 20-30% to cover costs.

11 Capital Finance is a nationwide commercial mortgage company that works with hundreds of lenders in the United States.

On the Permanent Side we do:
1. Bank Loans (conventional and SBA loans 1M+),
2. Bank Alternate Stated loans (these lenders are not banks and borrowers do not need to submit tax returns to qualify for these types of loans).

On the Temporary Side we do:
3. Renovation loans (for 1-4 unit investment properties and some standard commercial properties),
4. Bridge Loans (for 1-4 unit investment properties and commercial properties) and
5. Ground Up Construction loans (for 1-4 unit investment properties).

The principals of 11 Capital Finance have been in the commercial lending business for over 20 years and know how to properly advise a borrower on any type of commercial real estate transaction. We have worked with thousands of borrowers, and continue to, due to our superior customer service and knowledge of this business. We stay with our borrowers through out every step of the commercial lending process to ensure the loan closes properly and in a timely fashion. 11 Capital Finance personally handles all title insurance issues, property insurance issues and does all of the coordinating with every party involved in the transaction for our clients. I have attached our product sheet, which is a summary of the lending programs we offer. New lenders and programs are added weekly.