Down Payment Money Sought

[Mark Scarola]

More cash equals more deals. We all know that simple equation. I'd like to open myself up to more opportunities while working on others. Nearly all lenders want some form of a down payment or skin in the game, which is understandable. Nevertheless with a loan that could be spread out across deals or even several small loans I would be able to get into more deals. Is anyone offering private funding where you would be willing to take a 2nd position lien?

For example:

Property A cost $100,000 and Lender X is offering $75,000 (with first mortgage)

Property B cost $100,000 and Lender Y is offering $80,000 (with first mortgage)

My goal then is to find lenders who would lend the $45,000 to cover the difference in exchange for 2nd position mortgages. In reality the numbers would be different, but the concept the same.

[Hem Kumar]

Mark ,

From my experience no PML would be interested in a 2nd position lien, they are always weary of protecting their funds , you might better off trying for a JV partnership with someone who would be willing to part wit their money in exchange for an equitable position and usually it serves their interest in bringing the deal to fruition. Or if you have some equity try leveraging it.

Good luck.

Hem