Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Innovative Strategies
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago on . Most recent reply

User Stats

50
Posts
43
Votes
Adam Lang
  • Appleton, WI
43
Votes |
50
Posts

How to fund a down payment?

Adam Lang
  • Appleton, WI
Posted

I am looking to purchase a few duplexes for rental properties and should be able to get the loans to do them but I don't have enough to cover the down payment. What is the best way to still be able to purchase the property. My thought was to offer other potential investors a note to cover the down payment and then pay both them and the bank on a monthly basis. Is this something other investors would do/be interested in? If so any ideas on interest rates?

  • Adam Lang
  • Most Popular Reply

    User Stats

    1,409
    Posts
    857
    Votes
    Daniel Dietz
    • Rental Property Investor
    • Reedsburg, WI
    857
    Votes |
    1,409
    Posts
    Daniel Dietz
    • Rental Property Investor
    • Reedsburg, WI
    Replied
    We have solved this problem by taking on a Private Investor Partner, not a Private Lender. They bring 100% of the down payment (20-25% depending on the deal and lender) in exchange for 50%. We do ALL the work from finding , purchasing, manage rehab, place tenants and ongoing PM for our 50%.

    Cash flow is split 50-50 and equity growth will be split 50-50 when we refinance or sell out down the road. They will get their original capital they put in back before the equity split. We do this all in an LLC to keep things documented and easy to understand.
  • Daniel Dietz
  • [email protected]
  • 608-524-4899
  • Loading replies...