All Forum Posts by: Steve Sorensen

@Corey Hawkinson (and the others that responded)

Thanks for the feedback! I was under the impression that once it’s a multi-family property that there weren’t any 5% down loan options even if it was owner occupied. Thought I was stuck with a 20% down loan.

Good to know about the seller financing option typically requiring a large down payment, sounds like I can rule out that strategy for where I’m at.

Thanks!!

Hi

I’m looking at a triplex in a Minneapolis suburb. Recently, I’ve been looking to buy a single family property as my first property so I was planning to use a 5% owner occupied loan to buy the house. My realtor brought this triplex to my attention and I toured the property and it seems like it could be a candidate for a seller financed property (current owner is an older couple looking to retire and move on so they may be interested in having the cash flow instead of the full value of the home right up front). Since I don’t have the funds or investors for a 20% down loan, this is be the only way I could consider this property (as far as I know).

My question is this: since I’m dealing with realtors, is it reasonable to assume I would pay the realtors 5-7% fee out of my own pocket? The advantage here would be instead of paying 20+% down for an investment property loan, I could get away with paying 5-7% instead, which I can manage. I assume there would be some other attorney and miscellaneous fees as well?

If anyone has any experience with a situation like this, I would love to hear any thoughts, comments, feedback, etc.

Thanks!

@Tim Swierczek awesome info! Thanks for the detailed response, very helpful! Good things to think about; I still plan to "manage" the property myself using a property management company, I will just be doing the coordinating and monitoring of the property from out of state and drop in when I am back in town. My question about the time period would have been referring more to the debt model you described than having a partner, so your example of a 5-year loan with interest only payment is exactly what I was looking for.

Thanks for your input as well @Jordan Moorhead!

Hi,

I'm new to investing and looking to make my first purchase within the next two months. I work 100% on the road right now, jumping from site to site around the country every few months, and I'd like to invest in a property in the greater Minneapolis area (where I'm originally from). House hacking isn't a realistic option for me because I don't need/want an extra property in Minneapolis that I don't ever stay in. Because of my situation, I can't/don't want to get a standard owner-occupied mortgage with a 5% down payment, so I need to get an investment mortgage with 20% down. For a small, single family home, I'm looking roughly in the range of $125k-$250k, meaning a $25k-$50k down payment. I can't foot this down payment by myself right now, so I'll need an investor or investors. My questions:

- How are deals like this typically structured? Investor pays part of or the entire down payment and in return gets xx% back? Over what time period?

- How do I go about finding investors for this down payment? I've heard talk on BiggerPockets about going to local real estate groups and meetups, but with my job situation, going to these is not a realistic option.

- Other suggestions/strategies for financing this down payment? I've looked briefly into seller financing deals but have heard they can be tough to find.

Thanks in advance for the feedback!