Do I have any chance of receiving funding?

I have an opportunity to purchase 7 single family homes in North Louisiana. The current owner is looking to retire from the residential real estate game and offered to sell me 7 of his 60 or so properties. Last year he had a BPO on the properties that came back at $425,000. He offered to sell them to me for $245,000. Why would he do that you ask? I am good friends with his son and he knows that I want to begin investing. He is willing to hold a second mortgage for 30%. I have contacted 5 or 6 local banks without much success. I am 26 years old with a full time job, however I don’t have enough capital for the downpayment required by the banks that I spoke to. They all wanted me to contribute 20% to 30% of the purchase price in cash or marketable securities. Am I wasting my time here or is there a way for me to acquire this property with a lender loaning 70% of the $245,000 and the seller financing the remaining 30%? The houses are currently all rented with long term tenants. The monthly income produced from the 7 houses is $4,220. After running the numbers, if I were able to secure a 15 yr note on $245,000 at 9%, the monthly loan payment would be $2484.95. That would leave me $1,736 per month for insurance, maintenance, and cash reserves.
Thanks in advance for your help. I am glad I found this forum!

I think that you have a great opportunity here!!! First of all I am NOT an expert on wholesaling, I know rehabbing and landlording furnished units well. I would start by getting the units under contract and then find some buyers for 3 or 4 of the houses to raise the money for your purchase of the other units. In a worst case scenario I could see you owning one, two or three of the properties free and clear. Wait for a few more posts from the more accomplished wholesalers and flippers. Ask the seller for advice as well, he knew what he was doing to accumulate 60 properties.

Good Luck!


Thank you for the advice! I only have one hesitation about wholesaling these particular properties. I spoke to the owner about owner financing the properties for one year to where after having possession of the properties for one year, I would have them refinanced through a broker or a bank. He told me that he would rather just hang on to them because “he has everything to lose, and I have nothing to lose.” The only way that he would make out better is if he were to charge me more per month than he makes in rental income. He said that he would just hold on to the properties and if and when I were ready, to contact him and we would work out selling the properties. I feel that if I just got the properties under contract and sold them, he might not be as proactive in selling me his other properties when he decides to sell them. His son also owns residential income property in the city and he could just purchase the remaining portfolio. With that said, if I can somehow find a way to purchase all 7, I would be better off.



Do you know any local investors that may want to partner up with you? Have them bring the capital to the table and give them a few of the houses in return for the “skin in the game” capital.

This isn’t much of an opportunity with the loan terms you’re looking at.

Figure in taxes and insurance at 200/month/property and you have less than 50 bucks a house per month for maintenance and profit.

You need to be looking at 30 year terms at 4-5% interest to make this work.
Payment of $1245/month+1400/month taxes and insurance gives you $1500/month to play with for maint and profit. Now you have a deal.

Ask your seller what bank he uses and will they loan on this deal?
Get an equity partner who will put up the down payments on the loans for a piece of the pie. Ideally, refi him out with the second from the seller with him retaining his piece of the pie and you have a new buddy who will work with you on other deals.

Hi… You should not miss this opportunity to purchase 7 single family homes in North Louisiana. Also, He is father of your friend and he helping you to do investment. He giving you this good opportunity. You can get chance of this opportunity. All the best…