Using a private lender for down payment
Hey Guys! I am looking to purchase an 8 unit mixed use property. It has 4, 2 bed 1 bath apartments and 4 commercial store fronts. The property has a 16% cap rate!! I was wondering if anyone has ever used a private lender in order to pay a portion of or the entire down payment. In this scenario, the private lender would be in second position on the bank loan. The bank that i have worked with in the past does 25% down payment, for this property the 25% down payment would be approximately $110,000.
I am trying to figure out a way to purchase the property by putting minimal amount of money out of pocket and this is one of the ways i had in mind. If anyone has done something similar to this that can give me some input that would be great!!
Thanks!
Justin