So I have two properties under contract. Both deals will cash flow handsomely but I am buying using my FHA and I don't have enough to purchase the other property using 20% down. I am working on getting a line of credit for the down payment. Also considering private money, what other way can I go about getting BOTH deals. What would you guys do?
Simple answer, find a partner. If that doesn’t work, wholesale to another investor who has the cash
If it's that good of a deal the money should be easy. A few ideas...
1. Partner with a equity/capital investor
2. Private loan/Hard money lender
3. Wholesale the deal to another investor
4. Find a portfolio lender willing to lend on 75% of the Value, as opposed to the purchase price.
At the end of the day, if you cannot close on both choose one, and be honest and quick letting the seller of the other property know you are dropping out. Good Karma and EMD!
I just did that last month. I had an owner finance one house and found a lender to finance the other. With both, I found a money partner for the down-payment funds.
Using Private Money of a HML will probably be the easiest course of action if the other property is a good deal. I have heard that you can clump multiple residential properties together in a commercial loan, but I am not too sure about the specifics of that, so definitely do some research if that is something that interests you.
@Carlos Velez - beyond the options already mentioned, pull out a zero interest credit card and cash the personal check they give you. This let’s you float the cost for a year until interest. Even if it’s not 0%, it’s cheaper than most loans. Good luck!
All great ideas, thank you people!!!! I may have found an equity partner this morning!
@Jason M McNamara I got the line of credit. How do I get the 0% check?
We got our when our limit was increased or when we applied for new cards. They mail them to you and you can literally write them to yourself and deposit them in the bank.