Raising Capital

[Sarmad Abbas]

Are there specific rules around raising the 20% down payment that most banks require? Would raising just the 20% from private lenders and then getting a loan based on the down payment not be looked at favorably. Any guidance would be appreciated. Thanks.

Sarmad

[Cameron Tope]

@Tom S. is absolutely correct. 

I had a similar situation on the first rental property I purchased. The way I got around it was I used my own funds upfront from my 401k then borrowed the money from a family friend after closing. 

Note: you can use funds from your IRA or 401k for the 20% down payment.

Have you looked into hard money then refinancing? This is a great way to avoid the 20% down payment if you have a good deal.