20-25% down in a owned finance.

[Jason Gordon]

I have a couple of multi-families that may be willing to owner finance, but want 20-25% down. I am looking for creative ideas on how to raise the money for the 20-25% down payment. Any help would be appreciated!

[Seth Williams]

Jason, I've done a few deals like this in the past. I would recommend 2 things. 1) Try and lower the down payment required by doing a second mortgage with a short term balloon. I structured a deal like this was a 25k balloon due in 3 months and it let me save all the rents from a few of my properties to pay it down, but let me use the prop because we closed on it... make sense? 2) You'll have to get a business partner and do some syndication style deals. If they have the capital but want a passive investment you can keep a lot of the equity, remember, you'll be offering way more $ in return. 

Other option would be leveraging another property and doing a portfolio loan, they can cross collateralize sometimes and then you can literally put nothing down, because there is no point in owner financing the deal if you are putting that much down. Id work with the seller. They can't demand that $ down, and owner finance and get the interest too, you know what I mean? They should be at less than 15%, or 10%, down, maybe that second mortgage and move on. Plus, the seller when they owner finance get to realize everything annually in cap gains, its probably better for them and they will be making more passive income from you that way. 

my .02$