A Brainteaser, if you're up for the Challenge!

[Dan Johnson]

I have a tough situation, and could use some guidance from those more experienced in creatively financing deals: I'm very new to real estate and trying to get started out with creativity over capital. I got an offer accepted for $102K on a fourplex in Indianapolis, with gross rents of just over $2K, that comps around $110-115K. After reading The BiggerPockets little/no money down guide, I thought I was armed with enough information to begin getting the money together for this great deal. I have a little money, but not enough to put the 20-25% down on an investment property, and my income is not in Indiana so I can't owner-occupy the fourth unit for more favorable terms. I could if I had a job offer letter in Indy but I'm in school out of state until May and 3 of my courses are on-campus, so moving isn't an option just yet. That led me back to a commercial loan, but also financing my down payment. Unfortunately, even if I or my investment could pay for both debts the traditional lenders don't want to mess with it. B2R seems to be OK with a loan for the 20% down as long as there isn't a second lien holder, but they would have to source the funds and since those would be coming from my relative's IRA, they won't have been in the lender's bank account for the two months' seasoning. I even reached out to the proverbial "angel investor" and didn't have luck, as he is starting a business and needs his capital for his own venture. My property cashflows a few hundred dollars with very conservative and overcautious expense budgeting, even still cashflows assuming very unfavorable financing terms (100% LTV at 10% over 30 years). I have 1 week to get the proof of funds so that we can close on this deal, and I feel as though I'm hitting a wall. I don't think banks will touch 100% LTV, even if there's equity walking in, and I just don't know how to find trustworthy hard money. Even if I could get something temporary with interest only payments and refi out of it in a few years, I would be more than happy with that, but I guess I'm not sure who to trust with that and where to start. The other thing I've considered is trying to sell the option, but with only about 10% walk-in in equity I doubt I'd find someone to buy it. I'm not trapped in this deal and I still have a few contingencies, but I know it works well and I want to get off the sidelines and get in the game. Are there any strategies I haven't explored? Thanks for reading! Dan