Financing Down Payments?

Question

Howdy all,

I've got a property that cash flow very well, which means there's cashflow to sell or finance. It's a wrap owner finance with an underlying mortgage with equity and cash flow to spare. I've buried all my funds into this one deal and need to grow, so we're also needing more cash. For future deals, how would y'all recommend minimizing, or eliminating, that pesky 20% down payment and closing/realtor fees? Selling a second lien? Finding a partner? Somehow get bank financing? Private money? Hard money? I'm throwing out a hypothetical to see what everyone thinks. Thank you in advance!

Kevin Hoodwin · Answer

Sorry about the confusion, I should've clarified there are realtor fees when I sell it through an owner financing firm I use.  We are realtors, so we take a commission on the buy-side and put it back in the deal.

Odie Ayaga · Answer

Just as a heads up hard money won't be an option. They won't take a 2nd position on a property

William Charles · Answer

Why as a buyer would you pay realtor fees? Isn't it usually the sell who covers all that?

Rick Pozos · Answer

The best way to get rid of the 20% down is to NOT use a realtor to find properties. Find deals on your own. You will find better deals when you deal with people yourself. Target potentially distressed owners in your marketing. Oh yeah, you have to do your own marketing. It turns into a job to be a real estate investor. It is not easy to be able to find the great deals, but when you find them on your own, there is a whole bunch of flexibility that it buys also.

Realtors are pretty bright and are NOT going to let the home owners sell their property WAY below market price. They would be doing their clients a severe disservice if they let them sell to you the way most investors buy properties. Bigger profits are created with bigger efforts on your part.