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Updated 7 months ago on . Most recent reply

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Gavin Wynn
  • Investor
  • Norwalk Ohio
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Private money for down payment

Gavin Wynn
  • Investor
  • Norwalk Ohio
Posted

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
  • Lender
  • Charleston, SC
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Patrick Roberts
  • Lender
  • Charleston, SC
Replied

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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