Can RealtyShares be used to help fund a rental down payment?

Question

I'll be calling them tomorrow, but curious if anyone has done that with them before?  This would be on a currently cash flowing property with a long term renter in place already.

Jay Hinrichs · Answer

Lastly I think I have seen e mails from RS that they are rolling out long term debt for multi

so give them a call in SF and see what they will do.. but equity in the deals is usually non negotiable.

Jay Hinrichs · Answer

your first lender may or may not allow a second.. you need to check with them.

you could get a seller carry back for short term.. that may work.. but again most senior lenders won't allow junior debt.. it precludes deed In lui in the event of default and forces senior lender to a full foreclosure.. ( not at all insinuating that would happen) but in all my years of HML we never allowed junior debt for that one reason..

Might be a good time also to bring in an equity partner ????? if your one that likes or can handle a partner.. Just spit balling.

check on what the FHA multi family loans will do with terms and rates..

Steve S. · Answer

Basically it's a multi property deal for let's say $1M. 25% down is 250k and I'd rather not tie up that much cash into the deal. I wanted to put in say 150 and borrow 100 for the down payment and pay it off over a year or two.

Jay Hinrichs · Answer

Steve I think I wasted a lot of bandwidth.. are you looking for long term buy and hold. ??

I was talking about one year money...

not sure these companies have that product at all most portals have shorter term money although I think they are working on longer term debt I am not know as I am not a buy hold guy so I don't shop for that money.

if yoru looking for that I would check out.

Lima ONE   N. Carolina

Cogo Capital  Not sure where

Colony LA based

B2R   N Carolina

Peak   Kansas city  JP Sauer

these companies will do longer term buy and hold for cash flow rentals.. although pretty sure they wont go the leverage your talking about.. but they will give a decent interest rate..

Jay Hinrichs · Answer

I suggest you go to Lendinghomes website and look at their pricing matrix.. this is a very valuable tool I think for anyone looking for semi private funding.

I have borrowed from them for a few deals in Texas and I qualify for the very vest rates.. based on my experience level IE 300 plus flips in the last 4 years all verifiable.  And they do they have a super computer that checks public records... so you can't fool them.. LOL>

you will see risk weighted pricing ... I take it you can prove you have personally done investing before.  that is one key  many of these portal simply wont take first timers.

If you can stroke a check then what the heck is 5% going to do for you... put the money down do the deal and move on.. I really don't get that thought process personally..

There are also some lenders that are aggressive for folks like you with cash.. they don't want to do rehab.. but will put up 80% of cost with ZERO points and 9.9% one year no prepay.. that's pretty strong.. but you need to be strong as well.. they will take a first timer as long as you have good cash into the deal.. then you work the relationship going forward..  that's how you work these companies get in the door get track record with them.... then you can start to modify your terms.

I get e mails from lending home wanting to know if they can lend me more money  just about weekly  LOL.. I can call Nav and get a loan from him in 3 to 5 days... but that's based on already performing for them.. I took what was their standard deals the first time through then as I built credibility and success it gets easier ... you may want to think about that tac and see if it fits for you...

Steve S. · Answer

Would lendinghome do what I'm talking about?  I could write the full check and can prove I have the cash but trying to gain leverage for more properties without coming up with the full downpayment

Jay Hinrichs · Answer

NO way NO how... I was RS very first loan when they started.. I know the owner Nav AThwal personally... they simply wont do this.. and if its your first deal they may not do deals for 1st timers either.

Do hard money will do 100%... but be advised they will want 3k non refundable up front if you don't close and 800 a file to underwrite again with no guarantee that they will fund.. so have seen both sides of the coin with this company.. those that lost 3 to 5k and never got a deal done and ran out of money.. and a few that actually got funding.. and its very expensive.. RS or Lendinghome which is strong in Texas will be far cheaper..

Steve S. · Answer

to be clear I'd have significant skininthe game. It's. of the 25% down, I'd find at least 15% with Realty Shares funding the other 10% of the downpayment or so.

Ryan Murdock · Answer

I have not used RS but in speaking with them extensively they will want a 1st position and their minimum loan amount is $75k. Curious to see if you find out otherwise from them.

James Mc Ree · Answer

I have not done what you describe.  I think RealtyShares will want to see your skin in the game and won't see any if 80% is a bank loan and you are proposing RS be the other 20%.  As an investor, I would not buy into it through RS as it would likely be a 2nd lien leaving me with maximum risk and a borrower with no skin in the game.