Hey, so I'm trying to get into finding more seller financing deals and I'm wondering if you can get a hard money loan for the down payment on a seller financed property? I feel as though a hard money lender wouldn't want any part of it because if the buyer stops making his payments the house would go back to the original seller, but maybe not? Does anyone have any other creative ideas on how to come up with a down payment for a seller finance besides trying to work something out with the seller in the first place?
Are you going to be living in that property, renting, or something else? Hard money would be difficult because even with decent cashflow, paying back the HML would be hard. You could try and find a partner and go 50/50 for the down payment (or have the partner bring all the money) and split evenly the cashflow or equity or both. BRRRRing the property would be a good option also as long as the numbers work. That way you could get your partners or HML money out of the deal. So I think it depends on what you plan to do with the deal that will determine what avenue to take for the downpayment.
Also ask family/friends. They may give you the "family/friends discount" and charge low or no interest as long as you can lay out a plan to pay them back.
@Christian Flores Family and friends would be a good option if available. Maybe a personal loan for the down payment if the numbers work and you can cash flow.