I just started investing in real estate and have negotiated a couple of great deals. My problem is that I am having a very hard time coming up with down payment money. My credit score is 631, so any lenders I spoke with require at least 10% down. The deals I have on the table are seller financed with great terms, but want about 10% down as well. How do I come up with the down payment to get started? All properties are at least $10,000 below appraisal.
Thanks for any suggestions in advance!
You can investigate unsecured LOCs…
Regards,
Scott Miller
:cool WHAT about a promise note with the seller ?? THIS would be due and payable with in 30 days of close ?? IF you buy right and financed right it should be there ???
WHAT about a simultaneous close your 10 % down could be a seller 2 nd ???
Thanks, everyone for your great ideas - I will research them all and find a way!!!
Do what I do, first get your credit score higher, you can’t do real estate with a score that low. There are ways to fix ANYTHING on your report.
Second, get a business LOC like the previous poster suggested. One that doesn’t report to your personal. There are tons of business credit cards you can get WITHOUT lying on the app. I am currently “stoozing” over 140K in 0% intro cards. I keep the money in a 5.25% Eloan account until I’m ready to use it, so i’m making money off the credit card companies. It’s tricky, learn the ropes over at fatwallet.com first.
Once you find a real deal that cash flows (hardest part for me at least) buy it all cash, fix it up, get a tenant in there, put a first mortgage on it for the amount you bought it for plus fix up costs. My bank will allow me to pull out more after 6 months, but that would ruin my cashflow so I don’t bother, plus I want the money back in my “Stoozing pot”
Some people would argue that you have double closing costs with this. Which is true, but when you buy a house all cash, the title companies waive a lot of fees and/or have discounts for not dealing with a bank in the deal.
This is how I am doing my deals, only done it once, but it worked out great. I wasn’t successful with finding a small bank portfolio lender in my area that would help me without a down payment, no matter what the discount I was buying at. But I didn’t have a problem finding a lender that would refinance me out of my purchase plus rehab costs with no seasoning.