Financing- I need a creative way to come up with down payment

8 Replies

Maria, how much $ are you looking for? Here's some creative ideas.

1. Family or Friends LOAN

2. CC advance

3. Hard $ Lender

I'm looking for $565K. I need help with the down payment and closing cost. How would a hard money lender work? I was under the impression you only use hard money lenders for rehab projects. This is a 12 unit apartment complex fully rented. What is a CC Advance?

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I believe he means it's a Credit Card advance. If the deal is worth it then you may want to use this method. However, a hard money lender can be used for anything whether the purchase or rehab. They aren't companies so they can loan whatever they want so it removes a lot of red tape. Just remember that you will probably need to refi out of the property quickly because a hard money lender will have high interest rates. Also be prepared for a fee with a hard money lender as well. I just used one and it worked very well on a purchase.

@Maria Lugo

Hard money lenders typically only lend on a. First lien basis, so you can’t borrow the down payment from them.

Most lenders want a borrower to have a certain amount of skin in the game, so LEGALLY being able to put together a nothing down deal is MUCH more difficult than it used to be.

A good-great deal can be syndicated, but the money investors want the vast majority of equity ownership, leaving relatively small amount of equity for the “promote”.

Much depends if you will be investing most of the down payment from personal funds, or if you have no money to invest and need to do “ o thing down”. If the former, finding a partner isn’t all that hard, if the latter you would usually need averifiable track record of success, or a rich uncle who makes the decision to invest based on non business criteria.