All Forum Posts by: Arnold Caceres

@Dominic Mazzarella hi Dominic! Thanks for your comments! Appreciate your words of encouragement! 

@Wale Lawal hi Wale, thank you for all these great suggestions. Will certainly evaluate all options during closing! 

@Denise Supplee thank you for your recommendations. Needs will certainly drive innovation! Seller financing may work if only the seller agrees!

will research grants and programs in my state as well. Thanks again 

@Erik Estrada any investment is subject to lose some or all its value. that's why the structuring and walk on exit it's important 

Quote from @Erik Estrada:

Quote from @Arnold Caceres:

Hello BP,

I am in search for a rental property and have 2 bank pre-approval letters for the funding. However, I'm afraid I'll fall short in cash to close and for the 15-20% down payment the bank requires.

What are some strategies you use to raise cash for down payments without having to dilute my ownership? 
thanks 

 Hustle and save aggressively. Look into high income positions, high ticket sales, or low barrier to entry flips. 

There is no quick shortcut. Sometimes you just have to put your head down and pay your dues for a little while, get your finances together, and then start with simple transactions, slowly building your way to multi unit complexes. 

You should ask yourself, why would an investor trust me to manage their money? What value do I have to bring to them? Do I have anything to show for it? 

Agree with you. Thanks for the words of encouragement.

i have a friend who works in finance and is all for investing in the stock market. Given the current situation the markets are down and his investments are hurting. I tried to pitch how real estate will be a safer bet over the long run and he agreed he is only after a return from passive investing. 

this clicked on me that if I can show track record and make their return easy for them (give me cash and get x% in 1-2 years time) it should open the door for me to be able to manage opm as down payment and get the properties I want. The question then becomes how do I get their cash back out and what are acceptable terms for an re transaction…. 

im in it to win it. Thanks again. 

@Nicholas L. Thanks for the response. I've saved what I can thus far and plan on continuing doing so.

However, to get to the big leagues I have to start somewhere. OPM may be the way to go for me but need to figure out how I can structure a deal in that I maintain my ownership but get my cash providers a return.

Hello BP,

I am in search for a rental property and have 2 bank pre-approval letters for the funding. However, I'm afraid I'll fall short in cash to close and for the 15-20% down payment the bank requires.

What are some strategies you use to raise cash for down payments without having to dilute my ownership? 
thanks 

The Proverbs speak on helping others. If you have the ability to aid those in need by way of proving affordable housing to people in need then you'd be bringing Glory to God and your good deeds will be rewarded.

Your intention and actions toward others is what will matter the most in the eyes of our Father. 

Quote from @Carlos Valencia:

Hello Arnold, 

I personally used my 401k to buy my home back in 2017 so I know from experience its a pretty easy process. You simply call your 401k provider and let them know you are trying to borrow money to use as a down payment for your home purchase. There is a limit of how much you can borrow to use it towards a down payment. Typically you can borrow up to 50% of your vested value or up to 50k. I would recommend to check with your 401k bank to make sure. Once you take out the loan you make payments via your payroll every month. What's great about using your 401k is that the payment wont count against your monthly liabilities so it wont affect your borrowing power for a larger mortgage. Hope this helps. 

@Albert Bui @Matthew Kwan

 Thank you. I appreciate your response. The need for money got me thinking of alternatives and it’s good to see others have tried tapping into savings for real estate as well. It’s the way to go! 

Hello all,

As many others in corporate America, I have some savings tied up in a 401k. I still have many years before I can retire and withdraw penalty free, but I was investigating and saw I’m able to take out a loan against my savings and could use it for a home purchase.

This gives me a bit a cash to play with but wanted to check if others have considered the same? My view is that I can get a higher return by parking that cash in real estate as opposed to having some fund manager get me marginal returns on my savings.

Appreciate any thoughts or comments. I’m scrapping up money to invest and this 401k just sitting there barely appreciating (I actually lost money with inflation) .

Thanks