Looking to finance with no money down with private money loan

5 Replies

Hello Biggerpockets family,

I have a contract on a 4 plex, and just finished a BRRRR. I have one occupied property and my personal house currently.

I have talked with 3 banks and two of them basically told me that since I have no personal money going to be used in this deal( I have acquired a private loan for more than closing and down payment), then they didn't feel comfortable lending to me. I told them that I have about 25k rapped up in my BRRR, which is ready to be refinanced, and I would get back from 12k to 20k, depending on if it is 30% or 20% equity remaining in my property. I asked them to do both and refinance on my current BRRRR and put together another loan for this 4plex. One said they don't do refinancing, and the other would only do one at a time, meaning they would do the BRRRR but not the 4plex. The third bank would only entertain a 20 yr loan with commercial terms, 5 yr balloon, not even need to refinance BRRR yet, but the numbers won't work on that short a time, and I was actually approved on that. Go figure.

The numbers work, and will improve after I raise rents to market rate next Spring. Time is running out on my contract to purchase, and am surprised it hasn't already expired. Is there something else I can do to move forward or just wait until I refinance my BRRRR, then move forward with my properties? Thanks in advance.

Stumped in Central Illinois,

Jimmy Dean

@Ken Naim I have a private investor that is willing to put up the funds until I refinance my BRRRR. He said he wasn't comfortable at this time going in as an equity partner since he is new to real estate investing. I will talk with him again and see if I can change his mind. Thanks for your reply.

Arthur Cordoves

I have started, my original lender has a 6 month seasoning which is actually on thanksgiving. Another I talked with would only go 15 year amortization, which put my money too tight on this BRRRR.