New Deal and need cash

12 Replies

Hey everyone,

I am seeking advice and possibly funding. 

I'll give you my situation and I welcome all advice and or offers.

I am asset rich and cash poor, I have a very high credit rating, I own 3 cash producing rental duplexes and one is paid off, I have money in stocks, silver, and I am part owner in the company I work for.

I am ready to do another deal, and i believe I may have found a winner ( I am running the final numbers now). the problem is exactly what I stated above, I do not have the money for a down payment. I do not want a hard money lender as this is a buy and hold so the interest would kill me.

Does anyone have any advice for some creative financing?

Thank you

Justin D Schwartz

Hey Justin,

Sorry about that - and, no problem, I'm still learning, too - always learning!  What I mean is that maybe you can find sellers who are willing to finance the deal so you don't have to use any of your money.  Of course, most sellers just want cash, but sellers who haven't been able to sell, who have two mortgage payments, or who are otherwise motivated, may agree to sell you a property on terms, so you make payments to them.  I also find other investors are more willing to finance, as they totally "get it."  You might want to listen to some of Joe Crump's stuff on YouTube.  He believes you should never use (risk) your own money, and he teaches only zero-down techniques.  He has this whole heirarchy of how to do deals on terms (subject-to being the best, because you get the deed - ie most control!)

Here are some of the notes I took one day:



Structuring Zero-Down Deals - Hierarchy – When looking at a deal, say OK, can I do the top of the hierarchy?If not, move down.You’re always safer in a transaction when you are in control.We’re solving the problem for the seller.

When You Are Buying a Property: (will be exactly opposite when you are a seller)

  1. SUBJECT-TO High Equity - Equity 70 percent or more:Subject-to – buyer signs deed over to you into your company’s name and you make payments on their loan * Your first choice to buy any property is always going to be subject-to.Loan stays in seller’s name.You start making payments.You take warrantee deed.No cash, no credit and you get deed.Being on deed is strongest position to be in.
  2. Multi-Mortgage - Seller Has Equity – Equity: Subject-to & 2nd-mortgage –They still deed you the property, and you give them a note for the rest. 2nd – borrow from them you owe them _____ to be paid out (want longer time, lower interest rate, say 5 year 6%)
  3. Land Contract or contract for deed (seller financing) – A land contract is an agreement to buy a property at a particular price with a particular interest rate with a particular payment plan over aparticular number of years.(like when you buy a car – they take title, they have agreement with you to make payments to them to pay off the loan. As soon as you pay off the loan, they give you title.)They do not deed it to you, but it still gives you ownership rights.You can record that land contract, and you can turn around and sell that property with a real estate agent or refinance it after a year or so.(He prefers subject-to)
  4. Lease with an Option to buy – puts buyer in weakest position

Always buy with zero down.Don’t put money down on properties.There are plenty available out there if you understand the marketing and how to get people to come to you to sell their properties.

When Selling a Property, Here is the Hierarchy:

  1. Lease Option
  2. Land Contract (Seller Financing)
  3. Multi-mortgage
  4. Subject-to

The primary difference between typical owner-financed sales and land contracts:

Owner-financing agreements transfer full title to the buyer, while land contracts do not.

Hope that's helpful, and not a total overload! 


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Agree with @Jerry Padilla on doing a cash out refi

Other things you can do are as follows:

1) Pledge your free and clear property as collateral to a private lender and get a private loan. If I were you, I would sweeten the deal - like give your private lender a guaranteed 6% interest plus 20% of the profit when you sell

2) You can also get a BUSINESS CREDIT LINE. If your credit is 720, all you need to do is put up an LLC and you can get a corporate credit line of up to $150,000. PM me for more details or search for my recent posting on the subject

Account Closed we will have to connect on the option of a business line of credit. Is it at the local or national level? 

@Kim Banks  

One bank told me they could do a portfolio loan but I do not like the terms, another institution contacted me today because of this post and I have to discuss with them about a cash out Refi. thank you for letting me know that was an option.

Yall bigger pockets family are amazing. I look forward to the day I can offer such great insight back to you and to others!!!


If you are still looking for funding related to your projects or a cash out loan feel free to reach out to me directly as I may be able to assist.


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