Funding the rest of my down payment

4 Replies

Hi everyone,

I recently located a 3 unit property in Western MD listed at $100K. It's presently fulled rented and generates $1,800 monthly in gross rental income. The NOI is $1,291 monthly. I'm looking to go view the property this week. I lined up approval for a 1st position mortgage and I also have $12,000 from a 401K that I'll be putting into it. That leaves me $14,000 short of where I need to be to close. Does anyone have any ideas for coming up with $14,000 at 10% interest or less? Or does anyone know of any non-owner occupied 1st mortgages available with less than 20% down? (I found one that only required 15% yesterday, but the fees were cost prohibitive). In this case, seller financing is not an option. Thanks for your input - and if anyone would like to partner up on this, shoot your offer my way.

- P.J.

Call your bank.  I can get that loan at exactly 10% in 2 days flat.  It is a personal loan.  Also, call your bank and get a loan on any cars that are paid off.  Use one of the 0% interest credit card offers as well.  I know you are getting them.

Have you confirmed those numbers yourself as in looked up the yearly taxes, estimated vacancy, repair, etc, utilities, repairs, insurance...on and on? 

Also, are you withdrawing from your 401K or borrowing? If withdrawing, remember you're going to pay not only the taxes up front, but another 10% at yearly tax time. Is this deal worth that?

The rest of your money could come from borrowing from someone you know with cash. Offer them say $100/month for 3 years....after 3 years, you owe the entire sum back. Just an example.

Or, do you have any 0% credit card checks? These can all be risky as you're 100% leveraged and I highly doubt monthly total expenses are only $509.

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