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Updated over 8 years ago on . Most recent reply
Private/Hard Money for a downpayment?
I am getting ready to close on my first rental property (SFH). I am doing a conventional loan on a 30 year fixed rate with 20% down. I have the capital and funds for the down payment, but I am looking for other ways to fund the downpayment (hard money, private lending, etc.) as I am in the buy and hold game.
Didn't know if anybody has done anything like this before just to preserve funds..hurts cash flow, but preserve some funds.
Thanks in advance!
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- Lender
- Lake Oswego OR Summerlin, NV
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@David Koopman correct primary resi
Mark I suspect if you let your lender know you were borrowing the down payment they would not make the loan.. and if you do not disclose that .. its loan fraud..
only way to have zero of your own money in a rental is to pay cash then wait a bit and do a rate and term refi.... which is how we used to do these pre 08 melt down.. then the lenders took that product away for a few years and now its back and becasuse its back the BRRR method to many seems like its a new found strategy when in fact it is not.
- Jay Hinrichs
- Podcast Guest on Show #222
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