No money down on turnkey?

Question

Is it possible to purchase turnkey properties with no money down? How do you do this? Thanks!

Tim Steele · Answer

Establish a strong working relationship with a local bank. A mega bank will not help you. I called around town to 20+ local banks and credit unions. Calling around, I asked basic loan options, and then let the banker talk. Many bankers I could never get on the phone; it was always VM. Not what I want in a banker. Doing this, I found a handful of banks to visit and meet face to face.

I found the right fit. Fave to face, I told them, I'm an investor and want to build the relationship. My first loan, pulled out equity on vehicle - small loan 4k. Paid it back 6 months. Second loan, pulled equity on a rental. Paying it back on time and consistently. Then, I went back requesting another loan. No problem.

I put a great deal of effort into building the relationship. I created a business plan. My banker has it. I update it each year after taxes. If my banker has any questions or has to defend a loan he has given me, I've given him the tools to do that.

Actionable step: make a list of all the banks in your market, cross out the mega banks, then call around asking loan department about mortgage options. Let them talk and take notes. It still refer back to my notes from 5 years ago.

Ari Knepel · Answer

you can get a loan from your credit company for 50k and let the renter pay it off.

Tim Steele · Answer

@James Wise  Yes. I should say when I read @Kyle Scholnick post, I read it as he was buying "for" a turnkey property. I buy distressed properties (of varying degrees). Then, I add them to the rental portfolio or put them back on the market as turnkey. ( I hope I wasn't misleading.)

I find the deal, run the numbers and share the numbers with the banker. He will fund the property with no money down. ( I do put down earnest money of $500.) In addition, he will fund the fix up. I am buying these homes at a discount so the equity is already in the property. That is what he is looking for. If something should happen, can he feel comfortable he will get his money back.

For an example, here are the numbers of my last flip:

Purchase price $19,000

Fix up $40,000

List Price $110,000

Sold $104,000

This is a relationship I continue to build.  After 3 years, I am just now to the point he will fund two properties at the same time.

James Wise · Answer

Did they eventually loan you 100% on an investment property?

Ali Boone · Answer

Partner with someone. I own some turnkeys with no money out of my pocket.

https://www.biggerpockets.com/renewsblog/2015/12/0...

Account Closed · Answer

How is paying ALL cash considered no money down?

Charles Moore · Answer

if you have enough equity in your primary residence, you could take out a home equity loan at a fixed rate, then use that to pay for the whole rental, assuming that leaves enough cash flow every month from the rent. Or just take out enough for a downpayment.

Jassem A. · Answer

You could live in the property a year then rent it out or you could use equity to pay cash for a property, fix the property and rent it out and then use equity in that property to pay cash for another property

No money down on turnkey?

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