Searching For A Good Bank Loan

[Samuel Iddings]

Does anyone know of a bank that will allow a 5% (or just a low) down payment on a conventional loan to an LLC? I know it sounds like a stretch. The most recent Real Estate Rookie podcast alluded to the possibility that there are banks that provide packages as such. Thanks!

[Curt Smith]

5% is only part of your struggles, once you buy even a fixer that appraises C4 (dated but livable) you'll still need fixup cash.  No bank commercial or occupant does fixup loans without more down.  The HomeStyle rehab loan for rentals,  403k for occupied can roll some rehab into the loan but its a conplicted process, SWBC.com and Fidelity banks do both of these.  But 20% is needed and thats oon the purchase + rehab amount.  Then you need an investor friendly GC, another imposibility.

I suggest you spend time and money on educating yourself in creative financing on the buy side.  I'm NOT talking about seller financing, a needle in a very big haystack today, but subject to and lease option (to buy).   Buy BPs books,  go to youtube.com and search on subject to, creative financning, watch a dozen authors channels and focus on a few you like.  I';ve bought all their training from 4 teachers, its all good and cheap realatively <$500, and most have communities.   

My last 2 of 3 deals where subject to... BUT true I owned a nice house in a rental area I love for <$5k (not including the $5k per marketing costs) then I had to fund the $40k rehab out of pocket. Even still I suggest you focus on subject to as the rumor goes 2022 will bring more stressed sellers to market with low equity, defered maint. The target group are; <5yrs of ownership, starter homes, needs repairs so cant be sold on MLS and cover the commissions and buyers closing costs (10% typically).

Education is always the highest value of personal funds.  Keep track of me, I like helping folks close subject to deals and have a training pdf to give away.  I have no interest other then helping.   Best to all.