All Forum Posts by: Adam Budgin

Hi BP,

I'm looking for a HML that is lenient with proof of funds for a down payment. I have a few duplexes already and looking to further scale using hard money fund the acquisition and rehab with private money utilized as a portion of the down payment (unsecured). I've spoken with 5 reputable nationwide HML's s far, and all have restrictions around proof of funds for the down payment. I'm planning on having skin in the game and contributing to the down payment, however, leveraging OPM free's up my cash to be able to scale quicker. Does anyone have any recommendations around this or a HML they've worked with in the past under a similar situation? Thanks in advance!

@Madison Heck a local bank that offers a portfolio loan may offer a different LTV. I had worked with a local lender on negotiating a loan at 85% LTV (15% down) on a small multi-family I purchased earlier this year. Conventional loans won't be able to differ from the 75% LTV standard. COVID is add's another layer of risk though so it may be difficult to find a lender willing to loan at 85% LTV. Doesn't hurt to call around and ask though - banks need to lend money!

@Jaspreet Baveja Thanks!  And as long as I can find a lender who doesn't need to show source of funds for the past 60 days, all is good....but I"m expecting a higher rate loan for that as well.  Thanks again!

Thanks @Odie Ayaga  

@Wayne Brooks - agreed.  I have a handful of traditional mortgages no real way of using OPM for a down payment without their name on the title as well.  However, I am curious if you or anyone else has had success with a local portfolio lender allowing secondary liens.

@Pete Sailhamer - older post but 100% relevant for my situation. Did you have any success finding a lender in southern WI that allow either a secondary lien or allow a higher than 80% combined LTV?

Hi BP,

I'm looking for guidance on how promissory notes can and cannot be used for acquisitions.  I have a few sources of private money I can tap into, and I'm somewhat confused on how I can make the most of the private money available.  I'm highlighting the two scenarios I find myself in below, and looking for some guidance here:

1)  Source enough private money to completely fund a property/deal.  I'd be working with my lawyer on drafting the promissory note as there would be multiple lenders involved in this situation.  The properties identified for this route would be value-add with a cash-out refinance or sell the property as an exit strategy.  

2) Source enough private money to fund a down payment on a property.  Let's assume the property is 4 unit or less for the sake of maintaining consistency with residential loans.  Same strategy as above - but my questions arise with how a promissory note and/or deed of trust typically work with a mortgage.  Would this essentially be considered a secondary lien on the property or is it viewed differently by the bank?  Most banks I've talked to (local banks) are not allowing a secondary lien on the property (at closing at least).  Is there a work-around here?   Thus far, this seems to be a non-negotiable with the banks I've talked to.  Any guidance here is appreciated!

@Rebecca Knox that's exactly what I was looking for, thanks!

@Sam B. I appreciate the advice for working with wholesalers and brokers- that's been a focal point of my efforts lately.  

@Brandon Goldsmith Thanks!  I have a friend investing there which has brought my attention to OH

Hi everyone, I've been on BP for some time now, continuously learning and turning my vision into a reality with all your help; I have a few properties in the Milwaukee area and wanted to create a post with the intent of building up my network.  I'm looking to connect with like-minded investors in Milwaukee, as well as expand into a few Indiana and Ohio markets over the next two years.  

These forums have always been a huge help to point me in the right direction, and I'm hoping this will help others get started!  

My experience starting off is likely similar to many others - with the most difficult part committing and making the leap to purchase your first property, getting slightly more comfortable after the next. The largest obstacle I'm facing now is the scalability, which is notoriously S L O W if you're looking to acquire properties or portfolio's with traditional savings from your 8-5; I've been exploring SFR portfolio listings as well as apartment complexes and I'm looking to connect with investors either in a similar situation or that can provide advice on making the jump to larger investments.

Looking forward to seeing what replies come in!