Question about Funding for my first property

[Rene Cazanas Jr]

I'm a newbie investor want to know if it is unrealistic to use hard/private money for a 20% down payment with a conventional 30yr loan for the other 80% if I fund the rehab costs? Would hard/private be likely to lend in this scenario? I would plan to refi asap to pay off the hard/private loan.

Thank you in advance.

[Brenden Mitchum]

Hey @Rene Cazanas Jr, welcome to the BP Community!

Unfortunately, the short answer to your question is yes, that would be unrealistic. 

Any formal company lending money to a newbie investor will not be okay with taking a second position behind the conventional lender. Your best bet here would be to partner with friends or family on the down payment. Or, keep networking and saving money. Eventually, you will have enough to invest or will come across an opportunity that will allow you to get into the game with less down. 

Don't forget about owner-occupied, low-down loans. If this is an option for you, house hacking is a great way to get started with less capital!

Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat.