Financing owner-occupied first multifamily deal

[Valentina Bizeta]

Hello BP family!

My first post ever!! So be patient with me

I am brand new, no experience, to the real estate investment scene and hoping to get some knowledge from you, nice people, about financing my first house hacking deal. :)

Divorced, currently renting in Dallas County TX  - I moved from NJ six months ago  

Self employed in healthcare industry for over 8 years. Heavy tax deductions :)

Credit score over 750

Cash available for down payment: $50,000 

Looking to invest in Dallas - Fort Worth area - class B property preferably 

I was wandering if you guys know of some creative financing ideas for my situation. I learned the hard way that banks are not quick to give mortgage loans to small business owners. 

Thank you all in advance for the time you take to reply!

[Joshua Ferrari]

@Valentina Bizeta

There are tons of different ways to get financing. 

Hard money loans are an option. They don't typically look at you so much as they look at the deals ability to produce sufficient income for the debt service. However, hard money comes with points (fees charged by the lender) and typically a higher interest rate.

If you happen to know anyone else with a big chunk of money you could consider private money. Then you two can hash out all the terms amongst yourselves and leave the big banks out of it.

Owner financing is also a creative option to getting deals done. Your ability to solve the sellers problem could score you amazing terms that make the deal extremely lucrative for both you & the seller.

Subject-To financing requires you to take over the existing mortgage on the property with the same interest rate and amortization, but could result in the lender wanting all of their money when the title changes hands. (Typically doesn’t happen, but with everything goin on in the market, would definitely be something to double check)

You could also try partnering with someone that does have proof of income and pay them a fee or give them a percentage of the equity, in return for their contribution. 

I'm sure I'm missing 1,000 other options. There's tons of forum posts on lending that I'm sure would help you have a better understanding of it all.

You could also check out our website, on my personal page, that has tons of blog posts and podcast episodes on syndication and how that's another possibility for funding the deal. However, syndication typically only makes sense with larger deals. (5+ Units)