A little bit about me -
I have one 3 unit multi family in upstate ny. Albany Ny to be specific, I purchased this back in April 2019 and provides me on average 20% cash on cash, little over $300 a door.
It would provide me more if I wasn't paying off my HELOC which I used as for purchasing the house (down payment and closing cost) so theoretically I purchased the property with $0 out of my pocket.
Now I'm hungry for more but hitting road blocks in finding financing, traditional lenders (primary lenders) require minimum of 20/25 percent down for investment properties, is it possible to get a secondary loan to pay for that down payment / closing costs? If so, how? And where should I be looking for them and what should I be asking lenders in regards to it? I don't want to come off as cheap by asking. I'd love to hear from people and their tips and processes they've put in place. I am looking for partners but also iffy on how to structure deals if it's equity partners.
that loan product sailed with the Great GFC melt down.
equity from partners/ family is how you do that.
Generally how are equity partner splits done? If there is 100k required for down payment and closing costs and let's say there are 2 partners..
Partner A brings in 60k and Partner B puts in 40k, does that make the equity split 60% to Partner A and 40% to Partner B.
Is the profit /cash flow split generally kept at same percentage as the equity splits?
You don't need 20-25% down unless you're doing multi family and sometimes not even than. You can find lenders who will do 10% but you need reserves. A lot of variables.
All the properties I've looked at are multi family because my mentality was to increase cash flow but I see you're a private money lender. I'd love to talk to privately to see options for lending