Needing some creative financing advise

[Travis L.]

Hello BP forum folks! I am a long time BP "lurker" who needs the expertise of the community.  I have just bought a SFH rental property in Baltimore,MD on 11/14 of this year for 161,000 I have a note for 128,800.  I have fixed up the property and am getting ready to rent it very soon.  That being said I just found a good opportunity to buy a multifamily home near my home town that I feel after analyzing will check all my "Brandon Turner" analyzing boxes.  If my offer is accepted it should cash flow $300-400 month.    I want to make a offer on this house but my realtor will not submit the offer unless I have financing lined up.  He is worried that because I just bought a property that getting financing for another so quickly will be hard.  My credit is decent (715) my past 1040's show 48k per year.  My question to the community is.  Do I apply for financing with lenders for conventional and see if I can qualify (another hard ding on my credit) or do I go straight to Hard money lending/ seller financing.  I am trying to buy this thing with no money down.  I do not have the cash for the hefty down payment.  I am a newbie and avid podcast listener all advise would be appreciated! Curious to see others strategy of acquiring this property with little cash down

[Evan Polaski]

@Travis L., he is giving you standard advice for all realtors, especially in this hot market.  You don't want to waste your time, your realtor's time, the other agent and the seller's time.

To be honest, a no money down loan, either from a traditional bank or hard money lender is going to be challenging, if not impossible.  I have seen/heard of HMLs doing 10% down and 100% rehab, but have not come across one that does not require any skin in the game.  As for conventional lenders, these would be even fewer and further between.

As @Erik Hatch mentions, a preapproval letter is not hard or time consuming to get, you can typically get one within an hour, but make sure you are outlining to any lender what your deal specifics are, meaning little or no money down.  No point for you wasting your time getting a deal under contract, just to not be able to secure financing.