Creative Ways for Down Payment

[Ciara Lauren]

Good afternoon BP users,

I am interested in getting into the REI industry and I'm curious to know if there is a way to get a down payment via alternative financing or private lending.

My family and I are interested in doing a RTO scenario and do not have the option to pull from RRSPs. I'm in Ontario, Canada, so a lot of the US regulations don't apply.

Thanks,

Ciara 

[David Flores]

I have built my entire portfolio on using other peoples money, seller financing, and other creative strategies to bring in money through real estate. I actually run a podcast that dives directly into No Money and Low money down real estate. It is called "No Money Down Real Estate Investing" which is on Itunes and Spotify. 

As mentioned in this forum there are ways to find money you just need to be persistent and serious about what you are trying to do. You also need to make sure you are running your numbers correctly and you are protected. Remember if you are borrowing money for a DP the margins on the property need to be much higher than your normal investment property. Investments with seconds on them need to be above a 10% cap rate, that is usually my rule. Most of mine are in the 11-12% cap rate, these just make me a lot more comfortable. This was through negotiations, picking the right sellers the deal with, and just plain old luck. But as I said, if you are persistent enough these deals will happen.