Advice On Funding a Down Payment

[Christian Leon]

Hello BP Community,

I am looking to buy my first multifamily property in Jacksonville, FL. I have a two properties I want to offer on in the $350K mark, but l need to come up with 15%-20% down payment. My original plan was to use a local FL bank to get a HELOC on one of my investment properties, use that to fund my down payment, and then pay it back within a year or so. Very few banks are doing HELOCs on investment properties right now ( I have called over 20 this week) so I wanted to ask if anyone has done a HELOC on an investment property as an out of state investor recently, and who they used? Any other creative approaches/advice for funding this down payment are also welcome! Cheers

[Doug Spence]

@Christian Leon I have a contact that can do an interest only HELOC on an investment property. The property has to be rented with a signed lease as proof, and you need to get an appraisal, pretty standard stuff for a HELOC. The fact that its IO is pretty unique though. Another problem you may run into is the time it takes for these loan products to get approved: it can take a while. I have not yet done one myself but I hear it can take 4-6 weeks, so you definitely want to have access to those funds before you start offering on the properties.

Have you considered private lending as a way to fund these deals? There are lots of folks out there with capital but without the time or desire to find deals like you have. 

Good luck!