Private Lending for new investor

[Jay Elvin]

Hi everyone, 

I'm a new real estate investor and just bought my first 2 unit multi family in November. I would like to buy another this year but would need more creative ways to finance the down payment for a conventional loan. I would like to look into private lending. Any suggestions or resources would be appreciated. Thanks everyone 

[Andrew Postell]

@Jay Elvin try possible Personal Guarantee Loans, Home Equity Loans, Cash Out Refinance Loans, Credit Card Loans, Family Member loans, Crowd Sourcing, etc.  Beg and borrow.  If the deal makes sense you should be able to sell the idea of them investing in it with you, right?  I would encourage you to stick with the Purchase Price + Rehab numbers of 70% of the After Repair Value.  Meaning do not buy a home that violates this number.  Why?  Because if you do max out your available cash for a home you will need to get that cash back right away.  Keeping at 70% means you can refinance, flip, or wholesale that deal to someone else.  Then if you do get a short term loan from a family member you can pay it back and keep the proceeds.  Or just refinance the home and get your initial investment back.  If you stick to that formula you won't need to get many "creative" financing solutions for the down payment after a few transactions.  Hope this helps!