Next investment 100% OPM

[Leticia Camunez-Hanby]

Planning to fund my next 2MF 100% OPM. So far I have been unable to refi my 2 sfh rentals because combined value is about 70K, not meeting cu/bank minimum values. 

So, has anyone used PML/HML for the down payment and conventional loan for remaining mortgage? I have been pre approved for conventional. Need about 20k for down.

Any advice appreciated.

[Jason Shackleton]

Hey @Leticia Camunez-Hanby Yes most private money lenders need the properties to be at least 75k. However I know a lender that has no property price minimums. They would need to do the properties individually and not in a portfolio. The rates are higher but no one else I know of does this. 

[Don Konipol]

@Leticia Camunez-Hanby

Hard money lenders only lend secured by first liens, and with MF require the borrower to have a significant equity contribution. Private lenders are free to do something stupid, like lending a down payment or lending to someone with no skin in the game; but this high risk lending combined with their obvious lack of experience and or financial acumen, would almost assure a loss leading to withdrawal from ever making this type loan again.

If you have a rich or even moderately well off uncle, preferably with no children of his own, he may be interested in making you a “down payment, no equity” loan. If he regards it as primarily a gift, you may be able to maintain the relationship even if the deal fails or doesn’t live up to expectations. If he actually expects or needs to be repaid, I’d suggest you rethink whether the change in you relationship with your family is worth the cash. 100% financing is 100% leverage, and a market correction can easily lead to years of losses. Good luck