Hey A-Team! Hoping you guys can help me out. I have been spending a lot of time trying to find deals and have finally found wet myself and my partner is a couple good ones. However we don’t have an idea of how we can finance them. We don’t have the 20% to put down that traditional banks ask for. We have considered going through personal lines but these will be rental properties long term so we wanted them in the business name. Any creative ideas on how to make it work?
Hello Terence, have you think of having the seller finance the down payment? Also have you reached out to BP investors in your area who can help you with the down payment ? Also if you don't mind me asking, what is wrong with getting personal lines of credit if you have a good exit plan such as refinancing the property after a year of purchase
That is pretty much the point we are at now. @Adekunle Ilori appreciate the idea. How does a seller financed down payment work out?
Seller finance works out by asking the seller to finance what is needed down to have the whole loan close. Normally seller finance goes up to 5 years and also depends on what interest he is willing to give you. I will start with zero percent and go fro there. You will have an attorney draw out the contract and open an escrow account to have the payment send to. I hope this helps
I have attended a couple of local "Meet-ups" in my area and have about 12 cash buyers. Some loan at 5%, some at 8% depending on the deal. I'm sure your area has these types of meet ups and similar people looking for a good place to put their money.