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Cameron Ysidron
  • Baton Rouge, LA
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How would you make this deal work?

Cameron Ysidron
  • Baton Rouge, LA
Posted Feb 18 2020, 15:07

Hey BP,

Recently I came across a great deal on a condo in Baton Rouge. A friend of mine that I graduated high school with is selling a condo that his family has held since 2006. It rents between 950-1100/mo and has only had one month of vacancies in the time he has owned it. He's looking to sell it for 72k, and I've walked through and it can be rented immediately. I'm one hundred percent ready to move on this deal, but I currently lack the funding required for a down payment. The seller is very willing to work with me in whatever way he can. 


First, we thought that maybe he could just provide concessions equal to the down payment and we would wrap it into the mortgage cost, but that's a no go for the underwriter. Next, we thought maybe he could just gift the cash to me and we could write a contract saying I agree to close. That's a no go either as apparently you cannot use gifted funds for a down payment on an investment property. The last idea I had was to purchase this property through a newly formed LLC, but I think that I would have to be the personal guarantor and the same rules would end up applying.


I'm running out of ideas here, y'all have any others?

Best,

Cameron

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