Creative ways to get 25% down payment

[Sandi L.]

Hello,

I recently purchased a condo as an investment property. I had to take a HELOC out on my primary residence. I am now in the process of getting the home re-fi. How can I keep investing in real estate when I do not have 25% cash as a down payment and can no longer draw from home equity? There is also not enough equity to draw from in the condo, as I just closed. There is a multi I am interested in and I have a relationship with the mortgage broker as he is a friend of the family. He would lend but I still need the 25% down. Any ideas would be appreciated.

Thanks!

[Riley Place]

Seller Finance your down portion. If your bank is at 25%, then you can go to a seller with the proposal of giving them 75% of purchase price upfront, then the other 25% at a refinance or later date. Some institutions, such as mine, will loan off of appraisal value rather than purchase price after 6 months of seasoning, sometimes even less. 

Bottom Line - Get a great relationship with high-ranking loan/credit officer at a local institution. AKA not US Bank or PNC. My bank has 5 branches, a local board with people I know, and other key factors. They may have loan amounts of around 2 million or so, but you can get past that at some point, and you probably wont hit those for some time.