finding a partneto make a deal happen with 0 to little money down

Memphis, Tennessee
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finding a partneto make a deal happen with 0 to little money down

Danyale Martinez
New to Real Estate · Clarksville, TN · Member since 2021 · 26 posts · 21 votes

Hello Bigger Pockets community, 

I'm a new investor that's having a hard time coming up with the money to purchase a duplex 2/3 bedrooms both with 2 full bathrooms. The asking price is $230,000. Please pitch me ideas on how to make this work, or partners, etc....Thanks

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Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
4y

@Danyale Martinez you're going to have to assemble a pro forma to share and present with potential partners. Have you analyzed the property to determine if it is even a deal worth pursuing? As others have mentioned, you can house hack the property with an owner-occupied low downpayment loan. Raising private capital without a prior track record is going to have challenges. I agree with Debbie, start attending local REIA meet-ups to form connections and develop relationships with investors who have money to put to work but don't have any deals lined up. Hope this helps!

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  • Jonathan Nachtsheim
    Member since 2022 · 5 posts · 10 votes
    4y

    FHA loans only require 3.5% down, so if you live in one of the units you can try this route.

    Standard loans only require 5% down, sure you'll have to pay pmi but this is one possible route as well.

    I'm a newbie too, good luck on your journey! :)

    1Reply
  • Debbie FalesBusiness Member
    Lender · Annapolis, MD · Member since 2018 · 145 posts · 47 votes
    4y

    @Danyale Martinez You might want to consider finding an experienced investor to join the deal with you—maybe at a local meet up group or other REI event. For us as private lenders, we usually like to see at least 10% down although we have flexibility depending on experience and asset value. On the plus side, though, we don't qualify folks based on their income but, instead, on the value of the property itself.

    Best of luck to you!

    Debbie

    [email protected]888-444-3160
    Navigator Private Capital4.620 Reviews
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  • Michael Dumler
    Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
    4y

    @Danyale Martinez you're going to have to assemble a pro forma to share and present with potential partners. Have you analyzed the property to determine if it is even a deal worth pursuing? As others have mentioned, you can house hack the property with an owner-occupied low downpayment loan. Raising private capital without a prior track record is going to have challenges. I agree with Debbie, start attending local REIA meet-ups to form connections and develop relationships with investors who have money to put to work but don't have any deals lined up. Hope this helps!

    2Reply
  • Danyale Martinez
    OP
    New to Real Estate · Clarksville, TN · Member since 2021 · 26 posts · 21 votes
    4y

    Thank all of you this was really helpful!!! I have a meet and greet with some local investors this afternoon that I'm really excited about. I am in the process of refinancing my current rental property I'm hoping to pull cash from that and use it as a small down payment. 

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