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Private money for down payment
I am new to the idea of looking for a private money lender for future down payments, I am curious on the process on finding these lenders? Is it similar to applying for a mortgage or commercial loan? What kind of returns are these companies/individuals expecting?
Thanks in advance.
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Patrick Roberts
#2 Creative Real Estate Financing Contributor
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Borrowing 100% is a myth. You have to bring equity as the downpayment. Lenders do this to put you in first-loss position in the capital stack as well as to make it financially painful for you to walk away if things get tough. No lender with half a brain is going to allow you to be 100% financed on an investment property unless they are some shady loan-to-own outfit.
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