Just looking for input and suggestions on where I can find funding to use as a down payment for a hard money loan. We're trying to close on our first property, but we keep getting stuck when it comes to finding a lender because so far everyone is requiring a fairly large down payment.
Looking forward to hearing your input!
I think you will struggle to find any lender (besides owner financing) willing to go 100% on a first project. With a solid project & track record then to might have more success. Do you have at least 10%?
One idea is to find someone who is also in the game that you could partner with that could provide the extra cash for the down payment.
Or if you have some collateral that you could use as leverage that might help as well. And definitely some lenders are probably already have asked about.
If your business entity has a history of cash flow you could look at getting a business life of credit is another idea.
A creative thought is maybe ask the seller for a concession and have them seller finance the down payment for you that way you are creating some extra money for them as well as granting them some extra income that they would be losing from the sale of the property. Or you might even present them an entire situation where you seller finance the whole thing and give them some great terms enough that you have enough room to make things look good for a refinance lender 6 months to 3 years later. I know the seller might need allot of convincing especially in your market to do seller financing now when there might be a more qualified cash buyer that might come along behind you. So you would have to have a solid plan and reason for them to consider, but seller financing would still be a good consideration in the end if you couldn't find the down payment you are asking about.
Anyway I would like to connect with you further if you're open to it! Hope that helps!
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