Want owner financing up to 50k money down Philadelphia area

6 Replies

I am new to real estate investing and have approx $200k liquid to begin. I am not eligible for a conventional loan as I am working for a start-up company and will not be approved for a mortgage.

My thinking is to seek owner financing,negotiate mortgage directly with owner, and put up to 50k down for first property.

Am I going in the right direction seeking financing directly with owner or do I have any other options in my current position? I am avoiding purchasing a property 100% cash as I don't want to tie up all of my capital.

Please let me know of any comments or suggestions,

Thank you for your time,


Edwin 

@Edwin Giraldo

Your plan makes sense.

I'm assuming you're looking to buy and hold and not for a single family primary residence...

You should also consider that buying with cash will then give you options later to refinance to pull 60-75% out once the property is stabilized and generating income.

Originally posted by @Christopher Phillips :

@Edwin Giraldo

Your plan makes sense.

I'm assuming you're looking to buy and hold and not for a single family primary residence...

You should also consider that buying with cash will then give you options later to refinance to pull 60-75% out once the property is stabilized and generating income.

Thanks for your reply. You are correct, my objective is to buy and hold. Although, I have turned the property I am currently living in (I own) into a duplex which would allow me to rent and move out into another to have as primary residence. will this make things easier? not sure how that would affect 

@Edwin Giraldo

It would help if you didn't have the cash and could tap into the equity with a HELOC. But, it doesn't help if you're looking to do seller financing to buy your next place.

@Edwin Giraldo

You can find an investment property financing options with local banks/brokers who will finance up to 75% of the deal and base it more on the property cashflow and your credit score (not your income). That may be another easier option to find than seller's financing. 

Originally posted by @Jay Helms :

@Yuriy Skripnichenko is right @Edwin Giraldo. Long terms on commercial properties (5+ units) that are stabilized (typically > 85% occupied ) tend to be based on the property itself, not your personal guarantee. It’s called a non-recourse loan. Check em out!

 I like the sound of this I will do my research and establish a relationship with a local bank. Thank you 

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