I am looking to move on a duplex. I recently closed on a SFH, and my goal for financing this property is to keep more cash on hand in case of repairs etc on the other properties I have. For this property, all the financing I am finding is requiring 25% down, and will not allow "gifting" of funds to help cover a down payment, like if I get a personal loan from a family member.
I hear on the podcast often about how deals are partnered etc. Is it not possible to get conventional loan for these, because my mortgage broker told me that no bank will allow gifting of funds and bringing other's into deals. When this is described in the podcasts etc, are people using hard money or other kind of funding? I'm trying to understand the details of the, one person find the deal one person bring the money, transactions work.
Also open to learning about other ways to finance to keep more cash on hand. Thank you!
If you want to confine yourself to conventional financing, you will be hindered by rules and regulations. If you educate yourself on creative deal structuring, you can do anything you believe you can do.
I buy or control property using Subject To purchases, Options, Master leases, Joint Ventures, Seller Carried Notes, Etc..... without using a lot of my cash. Instead, I use my knowledge to structure creative and better deals.
Build your knowledge and you will build your bank account.
@Patrick Ng - partnerships usually form LLCs (with operating agreements and procedures) and then you acquire the property in that LLC's name using a commercial loan (not conventional). Does that make sense?
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