wondering how interest rates and Leanders were doing ?

Question

So this might sound like a dumb question but does anyone know about putting no money down on a deal? like 100 % Leander financing , other the syndication and raising money .?

Erik Estrada · Answer

Hey John,

100% Financing exists if you mix both hard money financing with seller financing or if you do a cross collateral hard money loan

Ryan Stuckey · Answer

Longhorn Investments out of TX continues to offer 100% financing on purchase and rehab projects (up to X% of ARV of course)....15+ years in business, 6500+ loans, and now in many states. Ohio representative here...the loyalty program is fantastic.

Doug Smith · Answer

I don't know of an institutional lender that will do 100% financing on an investment property. Statistics show us that the default rate drops dramatically the more someone puts into a deal. If they don't inject anything into the deal, that default rate skyrockets. You might be able to negotiate with a seller or get a partner to help inject capital into the deal. That's likely the best way to go. Walk before you run. I would try to get a handful of deals under your belt and establish a track record before you approach bigger investors. Good luck to you!

Mike Klarman · Answer

No one will give you 100% unless you have like 30 properties under your belt.  The 100% financing programs are for, you guessed it, the creme de la creme investors.  Investors that always have 2 - 4 deals going at a time all year long.

You're not going to call a lender and get 100% financing and they don't know you, or if you have no experience.  It doesn't matter how good the deal is.  You can be buying something for 100k, putting 50k in and the ARV is 500k.  They will not fund you 100%.

Hamp Lee III · Answer

Check out the Neighborhood Assistance Corporation of America (NACA) loan program. NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

✅ No down payment

✅ No closing costs or fees

✅ No mortgage insurance

✅ No consideration of credit score

✅ Below market fixed interest rate

There are several requirements to be eligible, starting with attending one of their workshops.

https://www.naca.com

I wish you all the best.

Erik Browning · Answer

A few things:

I'm a lender and rarely get asked how I'm doing, I'm doing well and fine, thank you!

Rates are not good, however a good investor will find a deal that includes the cost of financing and it doesn't end their career when rates rise.

We are investors that deal with a multitude of variables that affect our business – rates are just one part. If we continue to jump on this complain-train of high interest rates, then maybe we should all reconsider our life choices if one single variable affects us so deeply.

I choose not to complain about them and find other creative solutions to get other properties or help others get into properties.

Now, let's move on to financing:

There are two types of 100% financing, residential and private/hard money.

Residential:

If you are a veteran, you have access to 100% financing with your VA loan. You still have to come up with closing costs, but this is the best and most competitive financial product in the mortgage space. This is how I started investing by house hacking and then eventually use a VA Renovation loan to build equity at the onset, live in it for two years, rent out as a long term rental, and eventually sell it making $260,000 tax free.

If you are not a veteran, folks should use a Forgivable down payment assistance FHA loan. The rate is about one percentage point higher, but you can refinance out of it into a normal interest rate after six payments. Referencing my above comments about interest rates, interest rates are temporary and should not discourage people from purchasing real estate. You can always refinance and with a forgivable down payment assistance FHA loan, you don't ever have to pay that down payment back, thus 100% financing. This is not a state-sponsored Down payment Assistance program, though. The state ones require you to pay them back in one form or another. You still have to pay for closing costs with these also.

Private/Hard:

If you are doing a fix and flip or similar strategy, there are private and hard money lenders that would love to help you do 100% financing. The deal just has to make sense to them and it will likely cost you 2% -3% in an origination fee of the loan amount. Again, we are investors and the fees associated with financing property should be built into your equation. If it doesn't make sense, then it's probably a bad deal and you should look elsewhere.

These are the cards we have and complaining about interest rates or financing being expensive is a moot point. They are what they are and if folks do not like them, then they can continue to work a regular W2 job with predictable income and be like everyone else.

Ran Iarovich · Answer

In this economy... family, friends, or fools

Michael Dumler · Answer

@John L Daly, Evan summed it up perfectly. The other only loan option that comes to mind that finances 100% of the property is VA-insured. Just so you're aware, this is for active and retired military members who plan on occupying the home. There are conventional loan products that require as little as 3% down. As others have noted, it's highly advised that you hold some equity upon acquisition. Moreover, several indicators point to the notion that the Feds don't plan to lower rates until sometime next year.

Evan Polaski · Answer

@John L Daly, as Doug noted, I have not heard of 100% financing in a very long time.

And while I don't think this product exists, and I have not seen or heard of anyone getting such a loan in a VERY long time, I want to be clear that even if they did exist, you still need money to put towards a deal.

Hard money lenders/private lenders are likely the most viable source to get anything close to 100% financing.  But these lenders tend to have fairly sizable up front fees and reserve requirements.  Additionally, if you are talking about a rehab loan, you will also need to have cash on hand to pay bills between draws on the rehab.

You may already know this, and clearly asked about no money down, which is different than no money available.  But I have also seen a fair number of posts on these forums from people looking for 100% financing, because "they have only $1,000" to their name.

wondering how interest rates and Leanders were doing ?

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