Creative Real Estate Financing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Financing With No Down Payment
I am looking to get financing for a property. Here's the deal though. I don't have money to put down and pretty much, everyone wants some money down. What can I do to get the extra money needed down for most loans? Are there some companies that will finance the down payment also?
I'm sure there are ways, like borrowing from friends and family, but ultimately if you don't have the down payment you aren't, yet, prepared to get into this business.
Ready, willing, and able. I was the same as you when I first started realizing I needed to get out my career field. I think I had roughly $1,000 in a savings account that was more of a second checking account with the amount of times I’d take money out of it.
If you are seriously considering a career path the first thing I would recommend is learn to save money. If you can’t save money because you’re over extended, it’s not the right time to get into this business. Money management is the most essential part of being in any form of real estate in my opinion.
If you went to McDonald’s right now and asked them for a double cheeseburger and told them you didn’t have any money, do you think they would make it for you? But what if you borrowed that money from someone, then they would make it right?
Hi Ken,
If you find the right deal you'll have an easier time finding the money. If you find a great deal, I'd recommend finding a partner to put down the downpayment - you could figure out the profit split but since you have the great deal there's likely investors who wouldn't mind putting down money but don't want to do the work to find deals. If you find people like that, have a nice presentation put together for them so you can show them why they should invest the down payment amount with you.
Best,
Paul
I think you could potentially work out a deal with no down payment but it may stack the odds against you. You would have to pay back your family, have a higher mortgage payment, and in most cases get stuck with PMI (mortgage insurance) unless you have 20% down. I recommend saving every penny and try to get a home on an FHA loan (3% down) unless you can somehow get 20%.
What about a hard money loan with lines of credit for the down payment or something like that? Are those options possible?
Does the property need rehab? That's typically the purpose of hard money.Yes you can use hard money and lines of credit, but at the end of the day, what are you going to do if you encounter obstacles along (which is practically a guarantee in real estate)? Do you have some form of cash flow/income/etc coming in?
Originally posted by @Ken Warg:What about a hard money loan with lines of credit for the down payment or something like that? Are those options possible?
Yep, that is possible, to 100% fund your deals.
-
Real Estate Agent New Jersey (#1753157)
- MB Capital Solutions
Originally posted by @Odie Ayaga:Does the property need rehab? That's typically the purpose of hard money.Yes you can use hard money and lines of credit, but at the end of the day, what are you going to do if you encounter obstacles along (which is practically a guarantee in real estate)? Do you have some form of cash flow/income/etc coming in?
Yes I have a full time job also.
Originally posted by @Chris Teti:Originally posted by @Ken Warg:What about a hard money loan with lines of credit for the down payment or something like that? Are those options possible?
Yep, that is possible, to 100% fund your deals.
Ok. Thank you.