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Updated almost 3 years ago on . Most recent reply

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Nikko Tountas
  • New to Real Estate
  • Chicago, IL
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21
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Down payment options

Nikko Tountas
  • New to Real Estate
  • Chicago, IL
Posted

I am looking to put down 20% down payment to buy a 4 unit building. Is it a good idea if I don’t have the 20% for the down payment to use a hard money lender or raise capital for the down payment? Just trying to think if I want to scale faster and be able to have many units how to obtain that Fast rather then using my own 20% down. Also what would a structure look like if I was to raise capital for down payments. How would investors make money and such…..look forward to hearing what you guys think and learn as much as possible. As always  thanks  and appreciate your time and feedback 

Most Popular Reply

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3,673
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Steven Foster Wilson
  • Rental Property Investor
  • Columbus, OH
3,452
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3,673
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Steven Foster Wilson
  • Rental Property Investor
  • Columbus, OH
Replied
Quote from @Nikko Tountas:

I am looking to put down 20% down payment to buy a 4 unit building. Is it a good idea if I don’t have the 20% for the down payment to use a hard money lender or raise capital for the down payment? Just trying to think if I want to scale faster and be able to have many units how to obtain that Fast rather then using my own 20% down. Also what would a structure look like if I was to raise capital for down payments. How would investors make money and such…..look forward to hearing what you guys think and learn as much as possible. As always  thanks  and appreciate your time and feedback 


 Have you ran the numbers? Here is a calculator that I like to use https://www.calculator.net/ren.... I always say if the numbers work then go for it. I would do the numbers on going with private and bring in a partner. Some people get caught up in the door count. Even though it is a 4 unit, maybe you could make more on a duplex. 

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