All cash buy financing

[Carlos Araujo]

Hey guys, any ideas would be helpful.. I have an opportunity to buy a two family house, needs work but I ran numbers on fixing it as well as renting out one of the units and it looks like a good buy. Problem is it’s a cash only deal and I only have 20% down any ideas or banks that are willing to finance anything like this?

[Kyle J.]

The reality is, if the seller truly is looking for an "all cash" deal, you're going to have a hard time if you only have 20% down.  A hard money loan might be difficult too since it sounds like you plan to live in the property based on your statement that you only want to rent out one of the two units.  Most hard money lenders won't lend on an owner-occupied property.  Perhaps you could borrow the money from a friend or family member (private lender) or partner with someone who has the cash.  But other than that, unless the seller is willing to carry the note, you might be better off focusing on a property that allows for financing so you can get a conventional loan.  You can get a pretty good rate/term, even on a two unit property, if you intend to qualify as an owner-occupant.