Down Payment 20-30%? Are there ways around it?

[Michael Hable]

Hello Everyone from the western suburbs of Chicago! I'm excited to be part of a community of real investors and reading others thoughts and experiences on BiggerPockets.

I'm looking to invest in rental property and want to avoid depleting my cash. Is there a way to get around putting 20-30% down as required? Is it possible to put 5-10% down instead?

Thanks in advance for all your comments!

Mike

[Brian Gibbons]

Originally posted by Ned Carey:

@Michael Hable most low or no money down deals are done with creative techniques not traditional bank financing.

1. Owner financing
2. Private lenders
3. Hard money lenders
4. Partnering
5. 5 buying so cheap yo don't need financing

I thought I would "micro" this

1. Owner Financing - Anything the Seller does to help the Buyer - Vendee - Lessee assist the sale or possession

a. Lease Option - Sandwich or Assignment

b. Lease and sub lease

c. Sub2 with or without Land Trust

d. Land Trust Sale

e. Contract for Option to Purchase with Lease

f. Contract for Beneficial Interest of Land Trust

g. Contract for Deed - Land Contract - Installment sale

h. Wrap around Mortgage - All Inclusive Trust Deed (AITD)

i. Lease and ROFR (right of first refusal)

There are others

2. Private Lenders

a. With IRA Money, needs custodian, prohibited transactions adhered to.

b. With capital from lender

3. Hard Money

a. with skin in the game mostly

b. points, high interest, 70% LTV usually, not always, 6 month - 12 month call

4. Partnering

a. Usually a money - credit partner

b. They FUND, you SUPERVISE

c. Any split you want

5. Super Cheap Properties

a. You can buy investment properties under $20K in Cleveland OH with 20% down with $800 a month, Section 8

b. Partner with someone.

Then EXIT STRATEGY

a. Lease out

b. Sell For Cash - Investor or Retail

c. Sell on Lease Option to Tenant Buyer

d. 1031 Tax Deferred Exchange - Swap

I hope that helps!

Brian