Newbie with a finance question

[Brett Holmes]

Hi everyone,

I'm Brett Holmes from the Springfield / Ozark, MO area and I am new here on BP.  I have been doing a lot of research and have started analyzing deals, but not quite ready to pull the trigger on anything just yet.  Starting out, I am mostly interested in buy and holds.

Here is my situation.  I went to the bank the other day and got approved for financing with no problem.  My issue is coming up with the required 20% down.  I told the banker that it would just be me on the loan, so that I can maximize the number of home loans that I can get, between myself and my wife.  When I asked about using an outside/private investor to help with down payment, he said that that was not allowed, in general, saying that you cannot use a gift as a down payment for a house.  He did say that he only required 2 months of bank statements and if that money was there for longer than that period, then there would not be a question as to where it came from.  So my issue is that, correct me if I am wrong, most investors would not want to give you a large sum of money to put into your account while you wait for at least 2 months and then try to find a deal.  Would I need to actually partner with someone on the deal and have them cosign the loan, or are there other options that I am not thinking about here.

Thanks in advance. I love this website and all the knowledge it provides.

[Casey Mericle]

Brett,

You're right in the fact that a private or hard money lender (HML) likely wouldn't do that scenario (holding funds in your bank account). Here's some things that you might consider.

1. Ask your lender if a 2nd mortgage could provide the financing for a down payment.  If your lender says no you might try a different one.
2. Find owner financing or a terms deal.  This is the sweetest type of deal there is and you should learn as much as you can about it.
3. Find a private or HML to purchase on your behalf with an agreement for you to buy back in or split the profits.

The hardest part is finding a great deal.  If you can do that Brett the money will find you.  PM me if you have any further questions.