how to get owner financing for multi families?

[Devin Mann]

i dont have the credit history for a loan from the bank.

i think owner financing would be my only solution to purchasing a multi family .

maybe private lenders?

about how much money do i need for a down payment and to use some creative financing to purchase some rental property?

[Ryan Gillette]

If you have no credit history, seller financing might be a route while you build your credit profile. The down payment is negotiable between you and the seller, but generally the more you offer the more enticing it is to the seller. If you don't have an especially large down payment, but know you can afford more than the mortgage payment, you could increase the amount of principle you pay. Basically that down payment and any principle you pay is equity you build in the property and less risk you present to the seller - the more you can pay upfront or over the term, the better.

Keep in mind, most sellers won't give you a long term to pay it off. They are not like banks who can afford to lend you big sums of money over 15-30 year periods. 1-5 year balloon notes are not uncommon, giving you the opportunity to get your credit in order.

You may also want to consider a plan for yourself to wait 12 months, build credit, and buy a property using a 15-30 year mortgage through a bank. Overall, there's less risk in this strategy and lower costs (less interest rate, and you only incur one set of closing fees. The first common step to building credit is to get at least three tradelines- commonly credit cards. Even if you buy a pack of gum once a month and pay it off the next day, that's ok. It shows the credit bureaus and later the banks you are responsible about paying things on time. If you can't qualify for a credit card yet, get a prepaid credit card from a local bank and then start getting tradelines. It may seem like a bit of a game, but the intention is to show you can make timely payments.