LTV Question

3 Replies

Hello,

I understand this question has a very simple answer. If an asset based lender will lend 75 percent on a property does this mean that no down payment would be needed if the property was worth $100k and you acquire at $75k?

Thanks!

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@Reece O'Bryan ,

Where people get tripped up is that yes, there will almost always be a down payment. There is no requirement that it be your money, however. You can partner with someone who has what you lack, you can set up a venture in which people can invest their SDRPs so the venture looks like an all-cash buyer, ... lots of ways to do it.