All Forum Posts by: Ben Leybovich

Ron,
75% LTV is the highest banks will go at this time, and likely no more than 70% for a new investor (they want you to have skin in the game). They may allow owner financing, but likely not the entire balance of the purchase price.

If you have access to capital, one option is to involve an investor/partner to buy the property for cash and then refi. with a bank note. For the refi. the bank will go off of the appraised valuation. If you are getting the deal cheap enough, and if you have ways of improving the NOI which will result in a higher capitalized value at the time of refi., this may create enough spread to cover all of the costs of purchase. Do the math.

Another option is to get a partner for the amount of the down-payment. In this case, the money your partner brings to the table will be considered equity (you are not borrowing it unlike in the case of owner taking second.) Banks really do look down upon what they know is an 100% financed deal! But with your partner's money, to you this would be a $0 down deal. You need to be careful as to how you structure a partnership like this. Talk to a good CPA an Att. Hope this helps.