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Updated almost 3 years ago on . Most recent reply

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Where can I find $250,000 for a down payment?

Posted

I'm under contract to buy a 6 unit, mixed-use property with seller financing. The seller will provide $700,000 of the $945,000 required. They are giving me 45 days to show proof of funds for the $245,000 so I need to find it!

-I can't take any more loans from my 401k.

-I have 3 properties right now:
    -Property A, worth $400,000, is currently financed at around 72% with potential to pull out $31,000 to get to 80%.
    -Property B, worth $500,000, is currently in the process of being refinanced at 80% to pull money out to buy a separate property.
-Property C, worth $600,000, is my primary residence currently financed at 86% with potential for a HELOC to pull out $23,000.

If I can find $245,000 at 6% the property will still cash flow $400 per month at closing after all expenses, 5% vacancy, and 5% toward repairs. With potential rent increases and filling a currently vacant unit, it will cash flow over $2000 even fully financed. 

Any help in where I should look would be appreciated!

Most Popular Reply

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667
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Malcomb Stapel
Pro Member
  • Investor
  • Topeka, KS
490
Votes |
667
Posts
Malcomb Stapel
Pro Member
  • Investor
  • Topeka, KS
Replied

I'm with @Allan Smith on this one. You sound so far behind the 8 ball that it feels extremely unprofessional. You knowingly signed a contract with a sizeable down payment that you do not possess the ability to pay. Keep in mind that on the other side of that contract is a seller that is making plans which involve you actually doing what you promised. 

Your best options might be to wholesale it, or call the seller tomorrow and let them know you can't do what you signed up to do. 

  • Malcomb Stapel
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