ANY WAY to buy out of state investment with less than 25% down?

4 Replies

Like the title says, any way to buy an out of state property, 2-4 unit multifamily with less than 25% down? talking to some lenders and they say its not possible but I know I read somewhere where it can be?

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@Albert Gutierrez , Some of the other strategies would be: owner financing, seller carry back (seller makes up a portion of the down payment), master lease, partnering, hard money loan, etc. I hope this helps again, and let me know if you have further questions (PM me if you would like) or just continue to search the forums. All of the ones I've just given are spoken about in depth on here (BP). Good luck!

Originally posted by @Albert Gutierrez :

Like the title says, any way to buy an out of state property, 2-4 unit multifamily with less than 25% down? talking to some lenders and they say its not possible but I know I read somewhere where it can be?

There certainly is. You just have to find a fantastic deal. HMLs such as ourselves will lend up to 90% of purchase _provided_ the loan is less than 65%-75% of LTV (as is value). So sure, if you find a property that you can buy for considerably less than it's current worth you might only have to pay 10% down. HMLs like us can also finance up to 100% of rehab.

Having said that, money down is only part of the capital you will need. 

You will also need money for closing costs of various descriptions, rehab money (if this is a rehab) to finance up to the first draw which is paid in arrears, money to service the loan until the property is stabilized or flipped (HML money is not cheap) and of course extra for cost over-runs and time over-runs and emergencies which will surely be encountered.

Best wishes with your plans.