Looking for Money

I am a relatively new investor…full of desire yet lacking cash. I wish to invest in single family homes, but practically everyone seems to require some down payment. 10 or 20 percent seems to be the norm. Are there or is there some program or person that could either eliminate of at least lessen the down payment hurdle. I just need a start. Thanks for your time.

there are programs that loan up to 65-70% of the appraised after repair value(ARV)… you might want to find a good broker to work with and look for preforeclosures and distressed homes… you can also try birddogging for awhile to earn yourself some money and gain experience & Knowledge!

Thanks for the advice. I am in the process of finding a good nationwide broker to finance the deals once I get them. I have had a couple, but they have slipped through my hands due to a lack of adequate funding. I refuse to give up…REI is the way to go. Thanks again.

Offer the seller something of value other than cash for downpayment; give him a personal note for the remainder. Move in the home for 2 months; refinance on a low doc/no doc loan for 60% of the sales price, etc.

We need to think these things through. Talk with some mortgage brokers. They’re the ones with the investors willing to lend on good homes.

Or you could get a money partner, who is willing to work with you and invest in good properties. You do the leg work and he gives you the capital. There are a lot of folks out there that are doing so well in the stock market and would be willing to help eack other out.

Thank you again everyone for the advice. Offering something else of value…at least for the down payment. I see that you can be as creative as possible if the other person is willing to accept.

How would I find the money partner…advertising on web sites such as this, friends, etc.? Are there any readers out there who might be interested in helping me get my start? I have some properties in mind that could work. My stumbling block is that initial up front money to secure the property…ie the down payment.

I will however try alternative methods for down payments also. That I had not thought of. Again, thanks for the advice. :smiley:

Hi Madelf,

When I first got involved with REI I kept hitting alot of dead ends. It seemed like there were a bazillion properties of interest out there, but I just couldn’t figure out how to fund the deals. I went to every bank in town and talked with their senior loan officers. Eventually, someone told me I was doing things all wrong. I was hooked up with a mortgage broker that provides “Rehab” loans to investors like us. He pays me 80% of the ARV (after repair value) of a home. No down payment. No pre-payment penalty. The catch is, it’s a one year interest-only loan. But that’s okay, because I plan on immediately reselling the homes after I repair them. If you want to do rental property, this might not be the best way, because you’ll eventually have to refinance. But just sleep well at night knowing there are plenty of sources for you to fund these deals. RE is great because you can make money with othere peoples money.

Yes, finding money partners can be tricky some times, I use the real estate forums to network and also friends, go to your local real estate investment club and ask around and if you want to place an ad in your paper.
Goog luck

Have you found any good deals—if you show money in the deal—you can easily find financing…

Hello again–

Here is a web-site I found just today; may work for you and what you want to do: www.nva-mortgage.com/80_20.htm

Good Luck.