Down payment

3 Replies

Lets say i want to buy a 100 unit and i can get it for four million. It makes 400k a year after expenses and the rent is low for the market area. I would raise the rents and reduce the unseciary expenses and i'm thinking it could do 500k a year. My only problem is the down payment it would require a 20% down payment which would be $800k. I dont have 800k so what would i do? How would i get the 800k i needed? Would private investers be the way to go? And also can you ask them to take 15% or 10% down?

You need to find investors and most are found in your city's real estate investment groups. It would be easier if you contact a broker who deals with many lenders who can provide you the loan depending on your financials. Most lenders ask for 25% down. 

we got a deal.     70% bank, 20% seller, 10% me.

Now what is the monthly rent? I don't see any multis that make that kind of net.

My question is what can you offer me in return for my money? Say I was up to JV this with you and provide a bulk of the down payment, what would be in it for me? Someone with that level of free cash is probably fairly skilled or would seek a highly skilled partner.

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