All Forum Posts by: Jon De Jesus

@Alex Rodriguez, thanks Alex!  This is a great loophole.  I haven't heard of this approach and is something that I might use.  This can definitely help when partnering up on deals and offering the source of funds.  I wonder if there is a list of items that can be used as a source of sold items or if it's just open to what the borrower reports.  Very interesting!

Regards, 

Jon

@Jaysen Medhurst, Thanks for the reply.  I just asked and my lender does not accept any funds that aren't mine.  I think that option is dead.  He says, no gift funds are allowed on investment properties, only owner occ.  

The home inspection is coming up this Friday and if that comes back clean, I may just ask a family member to partner with me to do the delayed financing and offer a stake in the property.  The other option is to pull out a personal loan for $50k and then refi out of most of it a month or 2 after closing.  Those loans are pricey but I will only being paying that high rate for a month or 2.  Since the loan amounts are low, I think a personal loan cost is relatively the same as a hard money lender.  That way, I can fund the purchase as cash and then start the refi after.  There is already a renter in the property so that will help curb the costs plus the deal has great cash flow so I do want to keep it for myself.  I wonder if the costs related to getting the funds are tax deductible...I don't know any other way to do it if I am short to close.  My strength at the moment is my credit and I should be able to leverage that a little here.

Regards, 

Jon

Thanks Jaysen!  I will ask my lender if I borrow funds from a family member is allowed and if not then I will probably need to find a new lender.  I've also considered partnering up and that sounds like an agreement between my and the partner I choose.  The question is how the funds that they contribute can be shown as seasoned funds.  I borrowed against my 401K for my first property and the value isn't there yet to cash out.  That is a possibility though to close the gap.  I've also thought of a hard money loan to just fund the whole thing and then refi it after and pay the hard money.  What's your thought on that?

Thanks, 

Jon

Hi BP Community, 

This is my first post and I need some advice. I am working on getting my second long distance rental and I'm short on closing costs. I'm in contract, the property is located in a small mid-west town and I've had a duplex rental there for 2 yrs which has been going well with property management in place. The new property is $45k SFR and I have the downpayment but I will be short on the closing costs. My current prospective loan structure is at 15% down, $6,750, and the total at closing will be around $11k with prepaid taxes and ins. After reviewing my finances, I will probably be around $4k short for closing. My lender mentioned that I can't use gift funds for investment properties so how can I close the gap? I thought I saw a video that Brandon T. partnered on many deals with his partner fronting the down and he would carry the loan and liabilities. I considered that here but I was told I can't get gift funds for the loan. I need some ideas please. Thanks in advance.

Regards, 

Jon