Hard Money for Down Payment?

Saturday, January 3, 2008

Hello Everyone!

In 2009, my goal is to purchase 2-4 single family residential properties.

Is it possible and would it make sense to use a hard money lender for the 20% down payment?

I currently own 0 properties, have a credit score above 720 and I am confident that I’d be able to get a conventional loan for the rest of the purchase price.




Your best bet is private money. There may be hard money lenders out there that will, but they would be in 2nd position and would have to really like the deal. Do you know anyone that would be interested in a double digit return and would be comfortable with a solid deal?

Utilize DPA service

Monday, January 5, 2009

Thank you for the information.

I tried looking up information on DPA services but couldn’t find any. Could you please elaborate? Thanks again!



just go to Google and type it in…there are 841,000 references to DPA (Down Payment Assistance)


Most banks will not allow the down payment to be borrowed, and not all banks will allow down payment assistance.(I don’t know of any)
Down payment assistance needs the seller to agree to give them, the money at closing. Let’s say you wanna buy a house listed for $100000 and it appraise for 130,000, so you make a purchase contract for 130,000 hired the down payment assist program and they will give you the $26,000 you need for DP and they will recover it at closing from the seller whom signed an agreement with DPA previous to closing. The numbers need to add up but this is just an example.
Your best bet is private money, find someone with money and partner with them on the deal 70/30 is pretty fair, but if they want more you’ll have to decide what to do.
Good luck and be careful. :biggrin

Tuesday, January 6, 2009

Thank you all so much for the information!

If you do owner occupied you can get an FHA loan for 3% down for a 2-4 unit

Are you looking to hold onto the properties or do you want to flip?

Sunday, January 11, 2009

Currently, my plan is to hold my investment properties for the long term (at least 5 years). I work in the biotech industry and have steady income coming in, but don’t necessarily have the 20% down payment myself for these properties to cashflow.

I believe there may be creative options in acquiring properties with hard money, but not sure if it makes sense…


There are tons, I repeat tons of deals out there. And many of the deals cashflow incredibly with 0 down. If you need to put 20% down for the deal to cashflow then I strongly urge you to look for deals with better cashflow. I invest in the MidWest and will not touch anything unless there is around 50% equity and the rents are around 2% of purchase. Basically I get as many deals that fit my criteria coming thru my pipeline as possible and cherry pick the best ones. I fear you may be taking too much risk. Here are a few examples of the numbers. Reply to me directly if you would like to discuss.

Value 130K
Purchase 45K
Repairs 15K
Rents 1400
PITI 650

Value 140K
Purchase 50K
Repairs 20K
Rents 1800
PITI 750

Value 115K
Purchase 16K
Repairs 24K
Rents 850
PITI 550

Does this work for commercial deal?

moellerryan, how do you get these deals with zero down?


1 hard money lender will do 100% up to 65%LTV. I won’t touch a deal unless it is around 50% LTV, cashflows extremely well and is in a decent area. This lender will only do 1 deal at a time so I use private money for down payment on the others. Email me if you have further questions. Good luck, the next 3 years are going to be incredible!!