CREATIVE FINANCING/DOWN PAYMENT LOAN

[Jose Castillo]

Hello Bigger Pockets, 

I have a seller moving out of state and looking to off load some properties he owns. Today we did a walkthrough of a house I want to buy from him. I used bigger pockets calculator to analyze this deal. 

The property is a triplex; fully rented; total income is $3,950 (below market rate rents); expenses would be approximately 

$3,017; cash on cash roi would be 13.99%; purchase cap would be 9.56%.

I could remove some expenses to add an extra $300 to the monthly income, therefore increasing the coc and cap rate. 

My question to the BP community is, how do I come up with the down payment? I have $20,000 that I can use, but that would not be enough. I already own a triplex I bought last November with a 203K loan. This would be my second property, therefore an investment property. The down payment would be $50,000 or 20% and I would need $15,000 in repairs/upgrades plus closing cost of approximately $14,000

BP talks a lot about creative financing and borrowing from friends a relatives. If I find relatives willing to invest with me, what are the forms that I would give them? Are there any investors offering down payment assistance? Has anyone here used any small banks or credit unions providing this type of loans?  

Let me know below. 

Thank you!

[Anthony Dooley]

$14,000 in closing costs? I hope not. You don't need the money for repairs to buy the property. It sounds like you need $35,000 or so to close on the property. You could use equity from your other property, sell stuff like a car or motorcycle you don't use, get a personal loan from the bank, borrow from a friend or relative, borrow from a 401(k), or ask the seller to carry back financing on a portion of the purchase price in return for not asking for repairs or closing costs. If you are not using an agent, the seller is also saving money on commission. Those are some creative ways to get the down payment. Once you have the property, do repairs from your income and cash flow.