BALLOON FINANCING MY FIRST RENTAL- A RISK WITH A PLAN
Hey everyone,
So i'm looking to close on my first rental property. I am looking to get funding from a private lender that does balloon financing, interest only payments at 6% for 5 years. I'm asking for a loan of $70,000. Though anything can happen, my tenants are looking to rent-to-own the property and buy it within 3 years.
I am concerned with the closing cost since I offered to cover almost all of it. With this loan, it comes with 2 points, 1% charge of loan for underwriting fees and $450 home inspection. I'm worried that I won't be able to cover closing cost, title insurance, etc. and I don't have much. What should I do? I know there has to be a way and I am looking to finalize things with the seller in the next week. Just want to make sure I can cover these closing fees.
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- Real Estate Consultant
- Summerlin, NV
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#1 All Forums Contributor
- Real Estate Consultant
- Summerlin, NV
that sounds too good to be true frankly.. caution unless this is a personal friend or family member if its a private lender you met on line.. good chance you will lose any up front money you give them
- Jay Hinrichs
- Podcast Guest on Show #222
