All Forum Posts by: Jose Leandro Gobea

That's another way that people find money to start investing - home equity/cash out refinance of existing property. This can work - I personally would be very careful using my parents equity and start small but everyone has different risk tolerance. In addition, lenders for larger commercial multifamily often want you to have previous experience managing rentals. 

I would probably start with a 4 unit property using a DSCR loan, which will still be based on the property rents and not your personal income.

Thanks @Ray Hage - VA does have a 0% down option. Hard money lenders are not going to take second position to provide a down payment on another loan.

Carlos had a couple of good ideas for down payments. I think most just save cash from their day job. Some people will start with wholesaling to learn how to find deals and save that money. Finding a money partner is also an option.   

 to be honest, most people here is getting large downpayment after selling company stock or withdraw from 401k.

@Jose Leandro Gobea It's rare to get a loan for the down payment from any kind of lender. Usually, they want you to have skin in the game. Of course, if you're a veteran, you can get a 0% downpayment VA loan and I believe there are some other loans that allow for this as well.

@Ash Hegde, you can probably advise better on this topic. Any advice?

Just a couple of thoughts.

#1 I think there are very very few owner financed properties.  So your choices will be very limited.  For example in DFW area I may see 1-2 a month.  You have to think about who can actually owner finance.  Very few.   Then do the ones who can want to do it?  Very few.

#2 In my area the typical owner finance deal I see requires 10-20% down and probably 12-14% interest on 10 year balloon note.   So you really have to think about if that is what you want to do.  

#3. Bank financing will likely be a much better way to go if you can do it.

#4  Due to so few options, probably most good/ great realtors are not going to work with your seriously.  

#5.   I think there is a lot more risk with this option.  Risk you just loose all your money...year one or year 10.   There are a fair number of posts here of buyers that now have a problem.   For example what happens if you make all your payments but can't get lien release? 

What makes you want to try this option?

My fee would be paid by the buyer in most cases unless the buyer brings a significant enough down payment to provide the seller enough proceeds to cover my fee that would be laid out in the contract (which is still your cash funding my fee, just worded around differently).  So if you are using a real estate agent and seller financing, just keep in mind your cash will be used to cover your agent's fee

I charge them my normal fees that Id charge to any other buyer?

There is a list of ways to buy houses at 

https://housecashaz.com/Learn-10-Low-Cost-Ways-To-Buy-A-Hous...

Check it out and see if any appeal to you

Let me ask you this, why are you deciding against using the realtor? Do you feel like you can proceed with this transaction with utter and utmost confidence to close the property correctly? If not, I would reconsider not hiring a realtor.