Creative Financing.......Where can I get $175,000 for down payment?

2 Replies

Hi All, I currently buy & hold 8 units.  There is an 8 unit building nearby (Southern NH) that I am interested in.  And, even if I don't buy that building, I am planning to purchase more units.

I have exhausted my resources buying my first 8 units. I have an equity line on my paid off house for 4 of the units and I use an FHA loan for the other 4 units. They all cash flow and I am pre-paying the mortgage with that cash to be free and clear in 15 years.

I don't have the 25% to put down.  And my mortgage broker tells me I can't use a portfolio lender or do hard money because they want more down or more equity in the purchase.

I know some people with deep pockets, I can ask them for a loan....chances are slim, but I'll ask.

Where else can I come up with $100-$200k?

Thanks for your answers.

Originally posted by @Ian Handel :

I know some people with deep pockets, I can ask them for a loan....chances are slim, but I'll ask.

I think a partnership is more likely to appeal to them rather than giving you a risky loan.  

Do you own 2 properties with 8 units is each unit a separate property.  If you have 2 properties and are still in the "expansion stage", I would not pay off your mortgages more quickly.  I would instead build up reserves and a down payment for another property.

Thanks for your reply.  I have 2 four unit buildings.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.