No money down strategies?

Question

My partner and I are looking to buy properties with no money down, and are looking to not pay through the roof interest rates. One strategy we were thinking of is on below market value properties, is having the seller give us cash and raising the sale price, and using the money as a down payment. We are dealing with cheap single family residences, normally priced in the 20 to 40 thousand dollar range. And there is another complication to what we are looking for: we want to have our guarantee under our corporation instead of personal. We also want to pay interest only on a 10 or 15 year note. Is this possible or will we have to adjust our strategy?

Derek Carroll · Answer

I forgot to add that one strategy that I'm looking at is have the seller finance 75-90% and get a private money second for the rest.

Derek Carroll · Answer

A few thoughts:

- many lenders will have a limit on the amount that a seller can give as cash back to the buyer

- I'm a commercial mortgage banker and know almost notjjng about residential mortgages, but it sounds like you're looking for a commercial loan. Not saying it can't be done but non recourse on a small tloan like that is going to be tough to find. Non recourse loans are typically offered when the property alone can mitigate risk for the lender, and single family flips or buy and holds just don't usually fall into that category.

Your best bet is to try the local community banks and credit unions. You're also going to have a VERY tough time getting 15 years of interest only (read as not gonna happen).