Funding during COVID-19

[Stephanie James]

Hi everyone, I'm somewhat losing confidence in finding funding. Are there ways to fund multiple properties without putting 20% down on each one?  Can I use one that I currently own as collateral or my personal properties as collateral?  If so, what does that process look like?  I keep getting generic information and I guess, I am looking for something very specific on how to get this done.  I want to grow my business and continue to add properties without waiting months at a time to do so.  We are working on being more liquid but until we get there can I pivot in another direction until I reach the amount of cash that I'm trying to save?  Thanks for any information that you can provide.  

I'm just getting started and looking for the best way to gain momentum.  Thanks again.  

[Charles Seaman]

@Stephanie James For commercial properties, you'll need to put at least 20% down.  The money doesn't need to be your money, but somebody needs to put that money in the deal.  It's unlikely that you'll be able to collateralize your personal properties as a way to fund these deals, but you might be able to collateralize them in exchange for funds from a private lender.  You can then use these funds to invest in the deals.

Obtaining seller financing might be another option.  Getting primary financing that allows for secondary seller financing can help you reduce the amount that you have to put down.  Overall, my best suggestion is to work on finding money partners that can put these funds down for you until you're in the position to do so yourself.