Posted by Christen on December 08, 2002 at 09:53:12:
Well you have 5,000 in cash and 5,000 in credit so you only need 10,000, right?
What about the deposits, you are entitled to the deposits at closing. If the tennants each paid a $500 deposit that is another $2500. So now we are down to about $7500. What about Credit cards, home equity loan on your own house? A persoanl loan. In order to do our first deal my husband and I took out a 10,000 personal loan at a very high interest rate and then paid it off when we refinanced the property.
I am looking at a prospective 5 unit for 100,000. Bank will lend 80%. I only have 5000 in cash and a 5000 line of credit. How,or where could I come up with the 20,000 needed to do this? Seller not very receptive to carrying any paper.
Posted by Clair-MO on December 08, 2002 at 10:10:04:
Adam, Why not suggest that the owner lend you the down payment with a high interest rate and sell the unseasoned mortgage at closing. I do have several note buyers who will buy notes first and seconds as unseasoned.