Updated over 2 years ago on . Most recent reply
Private lender down payment and DSCR loan
My wife and have just purchased our first two investment properties with traditional financing and capital. We will be looking at a large multi family unit this weekend but would need about 139,000 for the down payment on 695,000 (purchase price). If I were to bring in a private lender for the down payment on a DSCR loan is it possible to get more than the amount needed financed to pay the lender back. In addition, do most private money lenders charge a percentage based on amount borrowed. Based on the income and expenditures The ratio is projected to be 1.65. Thanks!
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Another big advantage of DSCR loans are that you can borrow as an entity (such as a partnership or LLC), so if you bring in another investor as an equity partner instead of a private lender, you can structure it that way and have the funds needed for downpayment