Best way to raise 25% down payment/closing cost yourself

Best way to raise 25% down payment/closing cost yourself

Rental Property Investor · Elk Grove, CA · Member since 2016 · 306 posts · 76 votes

Hello Everyone,

I was wondering what is the best way to raise the down payment, closing cost, rehab, etc. for an apartment complex myself?

I am looking into HELOC and refinance.

I like to get at least $125,000

Thank you

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Real Estate Broker · Minneapolis, MN · Member since 2016 · 530 posts · 398 votes
7y

A lot of money to raise without a capital raise! 

Using a HELOC is a great strategy as well, do you currently have other properties?

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  • Real Estate Broker · Minneapolis, MN · Member since 2016 · 530 posts · 398 votes
    7y

    A lot of money to raise without a capital raise! 

    Using a HELOC is a great strategy as well, do you currently have other properties?

  • Rental Property Investor · Milwaukee, WI · Member since 2017 · 77 posts · 86 votes
    7y

    Hi @Amir B.,

    If you're looking to raise $125,000 on your own then you're spot on HELOCs and refinancing existing properties might be 2 of the best ways to do so.

    A couple other options could be transferring your 401k or investment accounts into a self-directed IRA account and leveraging that money for all or a portion of the required capital. You could also look to get a cash advance on credit cards, but as this is a highly risky option, I do not advocate using this one.

    Lastly, I would encourage seeking a potential partner to do a joint venture on this deal.  If they bring all the capital to the table this could make your job a whole lot easier and lowers your risk.  You could give them a fair cut of the deal and it's a win-win.  A small piece of a big deal is better than no pieces of any deal.

  • Rental Property Investor · Elk Grove, CA · Member since 2016 · 306 posts · 76 votes
    7y

    @Jorjio Hopkins thank you for your advice 

  • Rental Property Investor · Elk Grove, CA · Member since 2016 · 306 posts · 76 votes
    7y

    @Bjorik Mutize thanks for your advice. 

  • Michael DangPro Member
    Rental Property Investor · Houston, TX · Member since 2015 · 454 posts · 273 votes
    7y

    If you have stocks\mutual funds, borrow against your stocks.  Securities-based lending\loans

  • Real Estate Agent · Luray, VA · Member since 2016 · 459 posts · 293 votes
    7y

    Hi @Amir B.

    JV or working with one other investor could be a way to go. If you can work out a deal for them to hold a second on the property that you pay interest, for example, then that would avoid the syndication process.

    Other options would be lines of credit, refinancing existing properties, leveraging other assets (using a paid off vehicle as collateral, for example), or selling other non performing assets.

  • Rental Property Investor · Teaneck, NJ · Member since 2016 · 567 posts · 291 votes
    7y

    @Jorjio Hopkins those all are excellent options!

  • Rental Property Investor · Elk Grove, CA · Member since 2016 · 306 posts · 76 votes
    7y

    @Chase Louderback thanks for the advice

  • Rental Property Investor · Elk Grove, CA · Member since 2016 · 306 posts · 76 votes
    7y

    @Michael Dang unfortunately, I don't have enough, thanks for the tip though 

  • Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
    7y

    -save up w2 income

    -pull equity out of other real estate investments

    -sell other real estate investments and 1031

    -wholesale properties

    -flip properties

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