How to get a down payment for a rental with other peoples money

[Ralph Noack]

Looking to buy a long-term rental property here in Canada. Law says we  need 20% as a down payment. I have the cash to do that & I can get the mortgage no problem but I'd rather not use my money for the down payment. I am looking at houses in the $200K-$250K range & that ties up a lot of my money if I can't get it from somewhere else. Any suggestions?

[Kenneth Garrett]

@Ralph Noack

Attend REIA meeting, participate in meetups and the like. Private lenders would be a good route. You have to build relationships with these lenders. There is no website to go to. It is all about networking. You may be able to connect here, and I see a lot of people making request for private lenders. You need think when you talk to people would I lend to me.

Would you lend $40-50K and up on someone you met on Social Media. I would not. I need to understand my money is protected and I am investing in the person as much as I am investing in the project. One other option is to attend meetings where there are training sessions on SDRF (Self Directed Retirement Funds). In Chicago one of the Custodians of IRA funds holds breakfast meetings and other events I find useful.

Good Luck.