Residential Real Estate Broker · Morris Heights, NY · Member since 2015 · 33 posts · 5 votes
Good Morning All,
I am from NYC and new to the site! I am a residential real estate agent here in NYC looking to purchase my first investment property. I have been calling local and international banks for a blanket loan on a 6 unit investment property here in the Bronx, NY. Here are the numbers;
6 unit - 5 Unit Residential apartments - 1 Storefront (ground floor) great location.
parking space POTENTIAL on the side of building (vacant lot with curb cut)
cap rate 7.1%
$47.5k net operating income
GREAT DEAL!
I don't think I will have enough for a down payment (actually I dont!) - credit is 700. I have $0 for down payment at this time - I have 2 kids and married for 5 years and work 9am - 6pm everyday - I find it hard to save anything! I may get a loan based on my income/credit but I am stuck trying to raise $ for a down payment?!?!? what to do?!?! I am determined to make something from nothing, but how???
Are there any creative ways for me to raise funds for a down payment on my first investment property outside of asking friends, family and associates (no one I know has $$ I need to partner up with me)?
Question is: am I basically stuck or should I budget and save some of my OWN $ and try again in 2 - 5 years?
Bronx, NY · Member since 2014 · 42 posts · 11 votes
11y
Hi @Katie Johnson, welcome to the site! Check out the creative financing forum on the site. There's certainly a wealth of information there and all over the site.
You could find partners on the site through reaching out here on the site and networking in person to help you finance the deal. I went to a Harlem meet up last night hosted by Steve Nson, his events are on the website www.meetup.com. You'll find other awesome real estate meet ups there as well where you can meet lenders and other providers of creative financing.
Feel free to message me if you want to talk in more detail. I live in the Bronx and love the borough! Love it when investors go into the Bronx!
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
11y
It can be risky and controversial, but if you get those 0% credit card offers in the mails with the little blank checks, you could write yourself a check. This of course means the numbers have to work and you need to be able to pay that off. This also means that whatever bank is doing the loan doesn't require to see proof that you've had the down payment funds for some amount of time (vetted).
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
11y
So let's say you get down payment money and get the loan, then buy this building. Oops, the roof or heating system needs replacement in month number 4 of your ownership - what will you do then?
BTW - a blanket loan is one that covers multiple properties; you're looking for a portfolio or commercial loan.
Bronx, NY · Member since 2014 · 42 posts · 11 votes
11y
Hi @Katie Johnson, welcome to the site! Check out the creative financing forum on the site. There's certainly a wealth of information there and all over the site.
You could find partners on the site through reaching out here on the site and networking in person to help you finance the deal. I went to a Harlem meet up last night hosted by Steve Nson, his events are on the website www.meetup.com. You'll find other awesome real estate meet ups there as well where you can meet lenders and other providers of creative financing.
Feel free to message me if you want to talk in more detail. I live in the Bronx and love the borough! Love it when investors go into the Bronx!
Residential Real Estate Agent · Columbus, OH · Member since 2013 · 281 posts · 110 votes
11y
Make sure whatever happens you find a lender that will allow outside funds to be used as a downpayment on your deal. Typically if someone else is going to have a stake in the deal the lender is going to want to qualify them as part of the process.
So let's say you get down payment money and get the loan, then buy this building. Oops, the roof or heating system needs replacement in month number 4 of your ownership - what will you do then?
BTW - a blanket loan is one that covers multiple properties; you're looking for a portfolio or commercial loan.
Steve, I hear you! Of course I will need more than down payment assistance, I will need working capital in the event something unplanned happens. My assumption is that the real estate attorney I hire will do the proper due diligence so that I can anticipate some of these things before they occur.....
ok, when I spoke to the lender about the loan he mentioned "blanket" and closing in 10 days.
It can be risky and controversial, but if you get those 0% credit card offers in the mails with the little blank checks, you could write yourself a check. This of course means the numbers have to work and you need to be able to pay that off. This also means that whatever bank is doing the loan doesn't require to see proof that you've had the down payment funds for some amount of time (vetted).
I can not picture this? So I writing myself a check? How is the bank gonna get paid?
Hi @Katie Johnson, welcome to the site! Check out the creative financing forum on the site. There's certainly a wealth of information there and all over the site.
You could find partners on the site through reaching out here on the site and networking in person to help you finance the deal. I went to a Harlem meet up last night hosted by Steve Nson, his events are on the website www.meetup.com. You'll find other awesome real estate meet ups there as well where you can meet lenders and other providers of creative financing.
Feel free to message me if you want to talk in more detail. I live in the Bronx and love the borough! Love it when investors go into the Bronx!
Thank you for your response, I would like to learn more about this!
Make sure whatever happens you find a lender that will allow outside funds to be used as a downpayment on your deal. Typically if someone else is going to have a stake in the deal the lender is going to want to qualify them as part of the process.
Thank you Joshua, I will keep this in mind!
THANK YOU ALL FOR YOUR RESPONSES IT IS GREATLY APPRECIATED!
You write the 0% check to yourself so that the funds are in your bank account. Then you'd get your certified check made to bring to closing. They wouldn't take a check like this at closing or a personal check. Has to be certified funds.