Rental Property Investor · Sacramento, CA · Member since 2017 · 202 posts · 82 votes
I’m trying to buy my second investment property with no money. Having a hard time finding my second deal, I’m having luck with contacting small apartment building owners but they’re not willing to seller finance. Should I contact hard money lenders or private lenders? Where should I look?
Rental Property Investor · Normal, IL · Member since 2016 · 170 posts · 85 votes
4y
@Michael Williams
Unless you have a previous relationship with a hard money lender I think it would be a rare find to get one that will loan to you without you having skin in the game. It isn’t personal but for them it’s an investment as well except the investment is you. Hard money lenders don’t want the asset just a return on their money. I think you are on the right track looking for seller financing just keep in touch with the ones that said no and keep looking one will land eventually! The right place at the right time is key and these deals you are looking for are going to be hard to find! Best of luck to you!!
Rental Property Investor · Normal, IL · Member since 2016 · 170 posts · 85 votes
4y
@Michael Williams
Unless you have a previous relationship with a hard money lender I think it would be a rare find to get one that will loan to you without you having skin in the game. It isn’t personal but for them it’s an investment as well except the investment is you. Hard money lenders don’t want the asset just a return on their money. I think you are on the right track looking for seller financing just keep in touch with the ones that said no and keep looking one will land eventually! The right place at the right time is key and these deals you are looking for are going to be hard to find! Best of luck to you!!
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
4y
@Michael Williams
Here's how I did it on my last two properties and my next one I'm about to purchase. I found a bank who lended 100%, no down payment if I found a property selling for 75%LTV. Then I found a property fitting the criteria.
Second option, find a bank that will accept a second position of 20%-25% from the sellers in a commercial transaction. Easier said than done of course.
Both options are doable but are rare to come by. I tried dozens of different local lenders and when I found the right one, I had to have my first transaction with them under my belt before I got the better deals. Hope it works out for you.