how do you structure a package for an investor?

Financing, Hard Money Lenders, Private Money
1

Hi, all. I hope this question wasn’t just answered and I missed it, but…
I am a new investor, one single family home in my “portfolio”. Heading out today to review several additional properties. I really don’t have any more available cash to put down (10-20%) so will be bringing in a partner to invest. Let’s say I asked for $30,000 from this investor for a house that might sell for $150,000 (this is below market by about $10,000). How do I begin to determine a repayment schedule and reasonable interest rate that won’t kill cash flow? A conventional 30 year mort will probably be about $1000. The area will sustain rents around $1200.00 Is it better to give the person an interest in the dwelling, or amortized payments?
thank you
Bryan

2

Hi how are you?

How is your credit worthiness? You may not need a partner at all. It is possible to get 100% financing on N/O/O properties.

3

Hi. Money Lender. Thank you for your response. My credit is pretty good. My scores are at the top 700s and low 800s depending upon which company you review. Please tell me what is meant by N/O/O in your last response? Also, if I was able to do 100% financing, won’t that make it more difficult to have positive cash flow? Perhaps if the property is far enough below fair market value that would work best?
thank you
Bryan

4

N/O/O = Non-owner Occupied (e.g., rental properties…)

Keith

5

thank you, Keith