Does anyone out there know of any strategies for buying a multi-family investment property by using a private loan for the down payment and closing costs? Is this possible?
I was doing some research into social lending with groups like prosper.com that "supposedly" doesn't affect your credit score and "supposedly" doesn't affect debt to income.
Thanks for any insight!
I would see what the lender requirements are first, once you know what they will accept as a down payment; then you can move forward from there.
You might check out this member, he has been featured on many podcasts and seems to be active at coming up with creative financing:
It depends on what your banker is willing to do. We bought an apartment building 3 years ago. The bank that holds the primary mortgage also loaned us the money for the down payment on a 5 year note that was secured by our primary residence. In order for a structure like this to work, you need a couple things. First is sufficient equity in your primary residence to borrow against and second is the numbers need to be good enough on the investment property to carry both loans. In our case we met both easily.