I am looking for help. I would like to purchase 10 unit apartment buildings. I am hoping to purchase it with less than 20% down. I have my eye on a property already, but I am nervous about putting the 20% all into one deal. Does anyone have a recommendation for me.
@Demetrius Charles you could Joint Venture on two properties with another partner and each put 10% down on two separate investments. This way you diversify your risk a little.
@Demetrius Charles you could Joint Venture on two properties with another partner and each put 10% down on two separate investments. This way you diversify your risk a little.
@Demetrius Charles if you are not confident enough in the deal to put 20% its going to be hard to convince a lender to give you money. 10 units is usually going to be a 80%LTV on most lending unless you find private money.
@Demetrius Charles without more information it is hard to give you a good answer. Are you looking for a financial solution or emotional one to help you address the fear?
Share your concerns and we can try to help you through them.
The reason why I am concerned about the 20% is because I do not want to slow down my flipping business. Currently that will be a fairly strong capital drain on that business. If I remove to much of that capital it will slow down the potential to flip and create capital for other buy and holds. I feel like this is a typical problem with this process, and I am looking for another way. 200k investment on a single structure would be fine, but that doesn't leave me a lot of room left to continue to do flips to create the same liquid capital and buy the next building. Also, 10 unit building I am looking at is just over 1 million in purchase price.