Money for first deals - Posted by Pat

Posted by michael schindler on July 12, 2004 at 18:21:49:

It might be easiest and quickest to find a partner…

Money for first deals - Posted by Pat

Posted by Pat on July 12, 2004 at 18:14:21:

I have been working with a broker for over a year to make my first real estate purchase and finally four houses and two warehouses that have tenants/lease purchase agreements in place and that cash flow have come up for purchase all at once. I am finding that lenders want 10% down and my cash reserves are used up. My FICO is 668 with a Ch. 13 Bankruptcy discharged less than two years ago with a 100% payoff.

The properties have an approximate value of $1.3 million and are being purchased for approximately 70% of market value. Any suggestions for securing financing without coming up with the 10% of purchase price? I need to close on these properties quickly. The first two houses within the next week. I need help and am stressed!

Re: Money for first deals - Posted by Clint

Posted by Clint on July 15, 2004 at 22:08:26:

Will the seller carry a 2nd? Convince him that he doesn’t want to realize all the capital gains and that the interest you pay him on the 2nd mortgage will defray some of the recaptured depreciation tax consequences. If you do that, you can get a no-money-down deal. Of course, I don’t know the income and expenses on the property, but if you get the seller to hold 10% (always ask for more at first) you could do a deal with no money down. Unless you find a private money lender, this deal will take some time to put together. I do have a program that would look at this deal, with approval in 72 hours, but they do require a bit of money down. I have lots of other programs if you have a little time…

Re:Reality Time - Posted by Matt G

Posted by Matt G on July 13, 2004 at 08:44:13:

I am sorry but your broker did you no favors- in all commercial deals you need to put up something- its called “investment” real estate.

Re: Money for first deals - Posted by James Strange

Posted by James Strange on July 12, 2004 at 19:00:15:

You might find a local hard money lender to do it but then it may not cash flow.