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Updated over 3 years ago on . Most recent reply

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13
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Ty Hanson
  • Rental Property Investor
  • Luck, WI
5
Votes |
13
Posts

New Investors - Looking for funding advice

Ty Hanson
  • Rental Property Investor
  • Luck, WI
Posted

My business partner and I currently have one rental under contract. We are looking to scale and in the area we are looking for properties, a large deal has come up. A large investor is liquidating multiple properties in a city and we are interested in 10+ units.

Because we only have one cash flowing property we have limited capital. We are considering going through banks and mortgage lenders for partial. All in all the purchase price would be somewhere between $700,000 and $800,000 respectively.

Each unit is currently managed and rented either month-to-month or by year leases.

I have a hard money lender lined up that would lend a $100,000-$150,000 down payment for the purchases. We are interested in learning about how you can structure a deal as a new investor for a long term hard money lender… or how we can get a mortgage company to take a chance with us with little to no money down on a 10 unit deal.

This is my first post here and I am nervous so I apologize if this post is hard to understand and I will try to clear it up with any questions. 

Most Popular Reply

User Stats

486
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250
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Jason Shackleton
  • Investor
  • Ontario
250
Votes |
486
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Jason Shackleton
  • Investor
  • Ontario
Replied

Hey @Ty Hanson,

It sounds like you may have potentially located a nice opportunity. I don't know of any hard money lenders that fund the actual down payment. I would love to know who does that if you don't mind?...If you have equity in your first cash flowing property you may be able to refinance it and use the proceeds from that for a portion of your down payment on this new property. This refinance strategy would end up being much cheaper than using hard money. If you can locate the down payment you should be able to finance this property so long as the rent numbers etc make sense.

Good luck!

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