All Forum Posts by: Alban Celiku
Alban Celiku has started 2 posts and replied 11 times.
Post: Down payment Assistance on second property
- New to Real Estate
- Massachusetts
- Posts 11
- Votes 5
Quote from @Joey Isidore:
Hello all,
Are there any down payment assistance programs for investment buyers? I am in the process of trying to purchase a second property as a investment multi-family home, I currently have one multi family that I brought using a FHA loan, but now I'm seeking to purchase a second property using a conventional loan so that I'm not subject to making it my primary residence, I've realized that most lenders would require you to put about 20% on a roughly 550k-650k (Massachusetts estimate) property which seems a bit much in the beginning stages of my portfolio. Any feedback or food for thought would be much appreciated, as I try to brainstorm ideas for ways that could possibly require me to come out of pocket less.
Thank you.
Hi Joey,
Great question! I too have thought of this question myself many times. A couple things come to mind from what others have suggested on these forums and podcasts. How do you feel about finding a partner in your next investment? Either a debt partner or an equity partner would reduce your out of pocket down payment. Second, you could see if the deal would pencil out as a BRRRR. Using a partner or hard money lender for the down payment and repaying them once the BRRRR is executed could be another strategy to reducing your down payment. Third, creative financing like subject to or seller financing might be an option. It seems finding seller financing and subject to deals are very challenging since properties have appreciated significantly in the past few years.
Hope this helps a little! Looking forward to hearing others perspectives as I too am hoping to learn other strategies.
Alban