funding question--down payment $$ for investing

5 Replies

Hi everyone. I have two successful flips under my belt, and I'm very interested in branching out into wholesaling and lease optioning in my local area (Portland, OR and suburbs). I established an LLC for my biz about 1 1/2 years ago, and have worked hard to create a good business credit profile with Dun & Bradstreet, so that my REI biz is completely separate from my personal credit (which is in the very good range for credit scores). I'm ready for my next deal, but I only have a small amount of $$ (under $5K), so not enough for a down payment for a private $ loan. Prices in my area are going higher and higher, so to get into a deal, I need at least $40-$50K. I don't have any retirement accounts or rich friends/relatives to borrow from. Any ideas?! As far as I am aware, there are no mortgage lenders or private money people who will lend with less than 20% down, or 15% down but you have to have a large chunk of $$ in reserves. Thanks in advance if you have any suggestions!

@Maureen Healy one option is owner financing. Ask the owner to carry the mortgage for the property. It's just like bank financing but better terms. You can sometimes get owner financing with no interest. You can even put your 5k down if they ask for a down payment. If they still own a mortgage on the property then wrap the existing mortgage with a seller note 

Maureen, I met a hard money lender at a NWREIA meeting that would do 100% of purchase price.  I haven't worked with him but I thought his terms were really fair for hard money.  If you are interested private message me and I'll find his card.  

Lisa-yes, I would love that lender's info! I will email you. Thank you. I have been to NWREIA meetings in the past, but not recently. 

Devan: I have heard of the strategy you mentioned, but I have no idea how to do it or even where to start. How does is the paper work done?

@maureenhealy I'm right there with you... just a few more under my belt.  First let me say im proud of you.  People come to me and say they watch TV  think thay would be a great home flipper.  We both know how hard it was to first just jump in and then OMG stay working on 1,2,3, and even more.  I now for me it feels good to know we're building something good for our family.

To answer your question, I work with a small private finance company called rehab loan group in California and they have done me well. There loans are 80% of ARV and with the ballance of the funds used for the rehab. I guess what I'm saying is there are good options out there go to as many meeting as you can. I met the rehab guys at a Meet up "go to the app store for it" My wife and I go to 3 per month "good adult time" and learn a lot at them. You might have the same luck we have had at these type of meetings.

Good luck and keep working hard.


Hi Maureen!

Maureen Healy

We are working hard to get you to revisit Northwest REIA. (BTW, if you look up NWREIA it takes you to the Puget Sound REIA site, so please search Northwest REIA.) We do have money lenders who will be happy to talk to you! As we say it's the project that talks, and with your solid credit your project will talk clearer.

Feel free to contact me off site or on. I am the President of Northwest REIA in Portland, and we have the Vendor's Fair coming April 2nd. Lot's of contacts to be made on that day!

Also, we have a meeting somewhere every week, so check the calendar today if you have a chance.  "To your success!"

Grace Widdicombe

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