Creative Opportunity 100k Loan?

Question

Hey all,

My investments in the past have been with traditional mortgages.  I have an opportunity for a creative finance deal where basically I take over an existing mortgage payment and give the seller the 100K they need to move on etc.  Massive upside here.   BUT I do not have 100k liquid.   I have access to 30k from a HELOC on another property (not sure if its a good idea to use that or not) but if I do I still am 70k short.    Open to suggestions.

I know about hard money but thats not a good long term strategy

No immediate access to Private money in my inner circle

Any one know of ways to get a loan for a property based off the deal instead of debt to income (mine is not good as I own a few traditional properties) and this property already has a mortgage on it so not looking to just get a mortgage either

Any insight is great thanks!!

Luke

Sanat Bhandari · Answer

@Luke Schumacher Attend your local REIA meetups and connect with some local investors who would be willing to partner up with you on this deal

Since you are willing to put some money in the deal, that only strengthens the case for an investor who doesn't know you to want to partner up with you

Outside of that, another option is to get hard money to fund the deal and then refinance in a year or so with a commercial/DSCR note to pay the hard money and the current first mortgage off

Andrew Postell · Answer

@Luke Schumacher what you are describing is what Hard Money is used for when we BUY the property.  In the BRRRR method, you would still need to REFINANCE.  So you are correct, hard money is only for short term - but it can be lent on the ARV of the property and not the purchase amount.  Even most DSCR loans will lend on the purchase amount.  So in this scenario you would execute with the Hard Money and then Refinance with a traditional or DSCR type of loan.  Now, I don't know any of the numbers for this transaction...but that's the concept of how it would work if the numbers checked out.

Hope all of that makes sense.

Matthew Wolk · Answer

How much is the property worth that you have the HELOC on?  You could potentially DSCR Cash out that property and use those funds.

Creative Opportunity 100k Loan?

Most Popular Reply