Down Payment using Hard/Private money

[Jay S.]

I would like to hear about some of your creative ways of structuring the down payment for a property using hard and/or private money for a MF property when you had little or no money. While either using the bank to fund the rest of the payment or owner is willing to do owner financing payments.

Did you pay back the lender on time? Is this possible to do, if the numbers are good enough to cover the debt to both private lender (HML or PML) & owner finance payments or bank mortgage (whichever is used). As long as you break even or still able to receive a profit.

Thanks

[Curt Davis]

I believe you can only be allowed to use borrowed funds for commercial loans.  IF your looking at multi family of 4 units or less that would be a normal conventional mortgage and the lender would need to document where the money came from .  If you dont have much on hand cash then you get a private loan, the lender might require you to let it season in your account for a minimum of 60-90 days.  I dont know of any lender who would make you a loan to let the funds go into your personal account. 

You can use a hard money loan if you find a good enough deal with a lot of equity to buy with little down.  

Good luck