Creative (or any type of) Financing!

[Tim Kelly]

BP...

Hello all!  I am a new, and very motivated investor in the Hampton Roads, Virginia region and I am searching high and low for multi-family or small apartment complexes.  However, I am struggling to figure out the best approach for financing, if I do not have all the capital traditionally required for a down payment.

If I decide to go with a lender, am I really going to have to come to the table with at least 20-25% down? I have some capital to invest, and luckily my mother is willing to invest with me, so that adds some significant capital, as well...

Essentially, I am looking for the smartest way to being qualified for a loan or any kind of financing, on an 10-20 unit apartment complex in and around $400,000 - $500,000 that would definitely cash flow!

I am non-stop reading and educating myself with this but can't seem to find the best answer, please help!

[Chris Seveney]

I would first recommend not having your first investment be a 20 unit building unless your day job is in real estate. That is a bug animal to start with. Also above 4 units is commercial financing and unless you get an owner to finance or a partner the lender will require a large down payment. I have not seen properties that size offer owner financing as typically sellers want out and to get there money.