can anyone share creative ways that youve been able to close on multiple opportunities at that the same time. My situation is as follows:
1. Offer recently accepted on SFR, conventional but only 3% down loan (must live in property). Home bought for below market value as needs some TLC and sweat equity but not a dive. good established neighborhood
2. Simultaneously, came across 2 properties next door to each other, same owner. 1 home is currently for sale By Owner and move in ready. Could use a little facelift but other wise good to go. the other home was not originally in the plans to be sold but during conversation, and revealing that the guy owns both houses, we started talking about a package deal for both. The other home is in bad shape. Would require full rehab / gut job. This neighborhood is in up and coming area of town. homes here could be either residential or commercial, would require re zone to commercial.
Current plan is to move into house #1 and do nec. work ourselves to bring home back to life. Question is, how can we also take down the other 2 homes? 20% down conventional loan plus rehab is not in budget... especially 20% down each.
homes are in middle tennessee ;)
Hey @Mathew Walter Good question. Raising or locating that downpaymant money before you were to close on those additional properties is gong to be next to impossible. You will likley be unable to close on the deals in time with traditional financing.
Have you considered the private money option? There are some lenders that will allow you to get into the property quickly for far less that 20% down on say a fix and flip product. Some can even finance renovations! Yes the reates are much higher obviously. However the question is does the deal still make sense with paying these higher rates? If the ROI is there it makes sense. This product can be used to get you into the property. You can then later on refinance into more traditional financing options.
Hope this helps