Private money investor for down payment?
Hey awesome people of BP!
I have a question for you guys regarding private money...here's my situation. I and my partner are looking to get into buying rental properties in the sacramento area. The type of property we want is a multifamily (preferably a four-plex) where we use an FHA loan and I live in one of the units for a year. Problem is, we still need about $10,000 for a down payment on a property valued around 250k...which we don't have.
What if I found a private money lender who would lend us the 10k and in return we offered a certain percentage of the monthly cash flow for 2-3 years and then pay back the principle 10k by refinancing the property and pulling out some of the equity it has built. Do you guys think something like that would work? If so, what kind of terms would a private lender want?
Thanks for your time and advice!
Pratik