Found my first deal. What do i do now?

3 Replies

My wife and I were looking to get into a duplex and househack. We have been searching for months and haven't found any that make sense. Found a fully rented multi-family that cash flows nicely at asking price after running my analysis. I can qualify for financing but I don't have the $ for down payment or closing costs as this property is significantly more expensive than what we were considering. I'e been learning about hard money lenders, but I am a little confused as to how I can use in the given scenario. Do I ask for a hard money loan for the down payment and closing costs? I'm familiar with how/ when a hard money lender makes makes their money in a flip but since I plan on buying and holding as a rent property how and when would they make their money? Thanks in advance. I've been seeking answers for myself through reading and research, sometimes all the different scenarios can be overwhelming!
@Joe Villeneuve Great advice. My intuition tells me I should try and raise the funds utilizing friends, family and close network. That may be a challenge being that it's my first properties but I'm confident in my numbers. Any advice as where I may be able to find some trustworthy partners? Maybe here on BP? Thanks

First option is to go to the people you just listed here.  Make sure you're numbers are complete, and written down in a presentation (not hand written).  Nothing says the numbers are guesses more than not being written down and formalized.  This will also help them overcome your "newness".  You can sell a bikini to an Eskimo if the presentation looks good, and makes sense (well, dollars in this case). 

Most important in the presentation is to show them how "they" are making money...and getting their money back.  Timelines and dollar amounts.

Here's a great way to attract the people in your a party, or dinner, or anything casual where you can start a conversation about retirement.  Then just wait until one or more of them start complaining about their retirement plan.  Then you casually interject what you do, and how you find deals.  No speeches.  They will ask you for more details.  Wait for it.  Patience!!! Don't ask them for money...they will ask you how they can do the same as you...maybe even be your partner.  Let them sell you...they will.