Raising funds for a Investment Property Downpayment

[Neil Patel]

I am currently 22 and I have a triplex in Elizabeth NJ that I purchased with an FHA loan. Im looking to acquire a another 3 family in Elizabeth but am encountering problems using private money to fund the down payment. My lender told me I would need the standard 25% down payment and 6 months reserve PITI for the property I am purchasing 2 months reserve for my 1st property and the money can not be gifted. The house I am looking to purchase is about 160k and I am about 10-15k short of having enough for down payment, closing and reserves. Any tips on how to go about using private money to fund the down payment?

[Luis Roel]

A private money lender will most likely not give you the money you need. They want you to have skin in the game.

As said above, your best bet is to go to a bank and try to get the down payment. Or work with someone that can get you 90-100% of the purchase price. If you want 100% of the purchase price and rehab funds be prepared to take a hit on the interest rate. However, I'm sure you see how getting into a property with no money down can be very beneficial despite the interest.

Let me know if I can help.