Unable to get a mortgage on second property- creative solutions?

[Jamie Brayton]

I recently made my very first BP post about a complicated personal loan agreement with my father-in-law for our first property. It appears we are near to closing on that property and we have another equally complicated property we don’t want to pass up.

This is a three-unit rental home that is owned by my mother-in-law and her sister, who has been living in and taking excellent care of the property for 40 years.  We won’t have any income, debt, or mortgage from our first property, but it seems unlikely that any bank would have interest in funding this project. I think it is very likely we could enter into a personal loan agreement with my mother-in-law for her half of the property, but we would need half of the property cost (approx. $80,000) for her sister. She is moving to a retirement community and will be counting on that money for living expenses.

We do have savings set aside for investing, but nowhere close to $80,000. Another glitch in financing may be that they would never actually list the property.

Any and all creative strategies are greatly appreciated!