Updated almost 8 years ago on . Most recent reply
Funding the downpayment on a 7 unit
Hey BP'ers!
Just found a 7 unit that we are very interested in, but we definitely don't have the capital to get in the door. We currently have 4 units and the lender we have gone through so far has been requiring us to put 25% down.
If we can find a way to fund the down payment, we are going to shop around to see if we can find another lender that would require a bit less of a down payment, but I'm unsure of how to even get this ball rolling. I'm not sure what would be considered a good deal for someone putting up a down payment of 40-50k or if anyone would even do that for us. Looking at the numbers, we could pay the private money lender back in 30 months (possibly 24 months)--is that too long? We could also pay them 15-20% interest on the money that we borrow.
The 7 unit is currently listed for 249,000 and hasn't been on the market very long.
How do we proceed and what constitutes a good deal for a lender? What are private money lenders looking for? Total newb when it comes to all of this.
Thank you!