How to ask the bank to fund 100% of purchase / rehab cost?

9 Replies

Hey guys!

My girlfriend and I just closed on our first home. We bought a condo for the two of us to live in which has been a wonderful and exciting process. I wanted to house hack but she wasn't loving the idea :/ however, she is extremely supportive of my real estate investment interests and we were looking into purchasing a single family or duplex to rent out.

After buying our house, we have depleted the majority of our savings / reserves. This wasn't a BRRRR angle since it's our own home and was basically turn key with pretty new renovations.

My point is - how can I ask a bank to fund 100% of a real estate investment deal? Even with a deal sheet that shows promising returns, I feel like they would just turn it down unless I had the right strategy. Does anyone have experience asking a bank to fund 100% of a BRRRR deal? If so, how did you go about asking them and what were the little things that made them say yes?

Thanks in advance for all your help!

Hey @Jonathan Bivas , so a traditional bank will not lend you 100% LTV. But you can still technically finance 100% of the purchase by getting a 80% loan from the bank and then using a HELOC or home equity loan from you and your gf's condo for the remaining 20%, so technically the purchase is 100% financed and you wont have to be any cash out of pocket. Only way you would be able to get someone to put up the whole 100% of a purchase is a hard money lender(short term solution, mostly used for flips or BRRRR), or a private partner if your going long term with the deal.

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Originally posted by @Tanner DeHart :

Hey @Jonathan Bivas , so a traditional bank will not lend you 100% LTV. But you can still technically finance 100% of the purchase by getting a 80% loan from the bank and then using a HELOC or home equity loan from you and your gf's condo for the remaining 20%, so technically the purchase is 100% financed and you wont have to be any cash out of pocket. Only way you would be able to get someone to put up the whole 100% of a purchase is a hard money lender(short term solution, mostly used for flips or BRRRR), or a private partner if your going long term with the deal.

Thanks Tanner! The issue is that I don't have much equity on my new home - certainly not enough for a HELOC. I guess I might have to look for private money, but then the next question is how I would get someone to invest / partner when I have no previous deals to show my worth? I know they talk about value add a lot, but i'm not sure what value i bring yet.

Anyone is welcome to chime in on this!

Don't waste your time trying to find 100% financing. I would start looking for someone with money to partner with. Create an amazing business proposal with examples and proposed returns (short and long term). You do the work, they supply the money.

This is where you should spend your time..

I've only seen private or hard money lenders do 100%, but only for the purchase and rehab portion of BRRRR. Then, once you finish rehabbing and get it rented, you would have to do a second closing to refinance out of the short-term loan and into a 30-year loan.