Having trouble with financing an Investment property

4 Replies

Hi All,

I am currently in the process of trying to make my first real estate deal.  I am looking to buy and hold a single family home in Maine with 6 bedrooms.  Conservitively it should cash flow about $600/month.  

However, I am having trouble getting financing since the loan amount would be under $100k.  The owner passed away and his children are now trying to sell it.  The ask price is $110k but the owners are willing to work on that based off of work needed.  I am a plumber by trade (work as a plumbing engineer) and I have walked through the house and it doesn't appear to need much work at all.  I have about $10k I could put towards a down payment.  

Do you think that this would be a good place to try to do seller financing?  Any other ideas?

Thank you!

Leroy


They would be willing to lend but they would require me to put down 25%, the banker was telling me that it was because of some new fannie and freddie laws within the last couple of yeads. 

20-25% down is pretty much the standard if you aren't going to owner occupy. If nothing else see if you can get the seller to hold the 25% while you pay them the other 75% with a bank loan. A 5yr note at a 20yr amort with a balloon at the end may be attractive to them. Each situation is different, though, so create something that works for you.

Ryan, thank you for the input!  I am actually working on that right now.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.