Hi, I have 2 single family homes and one duplex that I purchased last year. I like to purchase a 4 - 6 plex units, but I am running short on funds. Is there a way of borrowing about $20K - $40K so I could use as a down payment for a larger unit investment?
Thanks
Howdy Irogers:
I do it every day. Sometimes I have to borrow from Peter to pay Paul but I get it done. I am aggressive and buy all I can get my hands on that make sense. The last deal I did I borrowed against my coin and baseball collection to get the deal done. I have to pay back some of this at the 1st of the month and am looking for other lenders to take their place. I do not do conventional deals where you buy at retail and get a loan and put down some money and hold forever. I buy fix up deals and borrow 100% of the money and then either sell or refinance and pull cash out.
100% financing on a 4plex can be done but its a bit expensive but still much cheaper than hard money.
I’ve got a deal right now for a 4-plex where I’m putting 5% down (borrowed from my personal line of credit) and am getting 1 first at 8% interest only, and a second at 8.6 for 30 yrs.
I will end up with a good positive cash flow and plan on a quick payback of the 5% down. 1/4 of the 5% will be in my account after the first months rent comes in.
Good luck.
Many investors will start to accumulate some unsecured lines of credit in their business names. Later you can use those as your down payment once you have found the right deal. I know several investors that have multiple credit lines that total $500,000. Good luck.